Kellogg Co. (NYSE: K) reported Wednesday that its first quarter profit slipped to $366 million, or $1 per share, from $418 million, or $1.09 per share, in the year-earlier period. Revenue grew to $3.5 billion from $3.3 billion in the previous year period. Analysts, on average, expected the company to report earnings of $1.03 per share on revenue of $3.40 billion. ]
"We had a solid start to 2011, exceeding our internal expectations for the quarter. Our top-line growth reflects our increased emphasis on innovation, investment in brand building and net price realization. Our momentum is building, as demonstrated by strong share gains in most of our U.S. categories," said John Bryant, Kellogg Company's president and chief executive officer. "We are raising our full-year 2011 internal net sales guidance to approximately 4 percent to offset higher input costs, and we are on track to meet our operating profit and currency-neutral 2011 EPS guidance. We will continue to leverage the power of our brands to achieve our goals for 2011 and remain focused on delivering sustainable growth over the long term."
Looking ahead, the company said that it continues to expect earnings per share in the range of $3.33 to $3.40. Using forward rates as of April 29, 2011, the company estimates a $0.09 foreign exchange benefit, which would result in reported 2011 earnings per share guidance in the range of $3.42 to $3.49.
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