UPDATE: Kellogg Posts Downbeat Q1 Sales

Kellogg Company K reported weaker-than-expected first-quarter sales. Kellogg's quarterly net income surged to $406 million, or $1.12 per share, from a year-ago profit of $311 million, or $0.85 per share. Excluding certain items, it earned $1.01 per share, versus analysts' estimates of $0.97 per share. Its revenue dropped 3% to $3.74 billion, missing analysts' estimates of $3.81 billion. John Bryant, Kellogg Company's president and chief executive officer said, "Our results for operating profit and earnings in the first quarter were broadly in-line with the expectations we highlighted on the last earnings call." Kellogg reaffirmed its outlook for the year. The executive continued, "In addition, we've made great progress with Project K and we've developed strong investment plans for the remainder of the year. As a result, we've reaffirmed our guidance for the full year and expect top-line performance to improve over time." Kellogg shares fell 0.28% to close at $66.83 yesterday.