Kellogg Q1 Profit Beats Estimates

reported better-than-expected earnings for the first quarter on Tuesday. The Battle Creek, Michigan-based company posted quarterly earnings of $227 million, or $0.64 per share, compared to $406 million, or $1.12 per share, in the year-ago quarter. Excluding one-time items, the company's adjusted earnings came in at $0.98 per share. Its net sales declined to $3.56 billion from $3.74 billion. However, analysts were expecting earnings of $0.92 per share on revenue of $3.55 billion. The average estimate among 8 Estimize users was for earnings of $0.93 per share and revenue of $3.55 billion. Net sales by Kellogg North America fell 3.7 percent to $2.4 billion in the first quarter. Reported net sales slipped 13.8 percent in Europe, while net sales rose 6.3 percent in Latin America. Net sales in Asia Pacific dropped 5.3 percent in the quarter. Its operating profit shrank 37.5 percent to $384 million. "We were pleased to report improved sales trends in the first quarter. In fact, our results exceeded our expectations and we are on-track for the year," said John Bryant, Kellogg Company's chairman and chief executive officer. "We've made great progress with Project K and are reinvesting to drive profitable sales growth." The company affirmed its full year currency-neutral comparable outlook. Kellogg shares rose 0.19 percent to $64.25 in pre-market trading.