K Misses Top and Bottom Line Expectations
Last Update: 29-Jul-10 10:25 ET
Kellogg (K 49.29 -2.17) reported second quarter earnings of $0.89 per share,
excluding non-recurring items, $0.05 worse than the consensus of $0.94.
Revenues fell 5.2% year over year to $3.06 billion vs the $3.29 billion
consensus.
Incorporating the challenges associated with the impact of the voluntary cereal
recall and the current business environment, the company lowered its 2010
guidance for full-year earnings per share growth on a currency-neutral basis to
the range of 8-10%.
The company expects 2010 internal net sales growth to be in the flat to 1%
range, and internal operating profit growth to be in the 4-6% range. Up-front
costs for full-year 2010 are now expected to be ~$0.12 per share compared with
earlier estimates of $0.16 per share.
Cash flow guidance was reduced to a range of $1.15-1.2 billion, in line with
business results.
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