Kellogg's 2nd-quarter net rises on higher prices

BATTLE CREEK (AP) -- Kellogg Co.'s third-quarter net income rose 14 percent on higher prices and stronger sales. The world's biggest cereal maker raised prices to offset higher costs and is starting to see the benefit of those adjustments. Kellogg reported Thursday that it earned $343 million, or 94 cents per share. That's up from $302 million or 79 cents per share last year. Company revenue rose 11 percent to $3.39 billion. Analysts expected the company to earn 91 cents per share on revenue of $3.28 billion. The maker of Frosted Flakes and Cheez-Its had struggled to maintain profitability as costs for ingredients and fuel soared. And at this time last year, it was slammed by the impact of slow sales and a cereal recall. In North America, revenue rose 8 percent to $2.2 billion. Higher prices and new products boosted cereal sales, which rose 13 percent. Cracker sales helped drive the company's retail snacks revenue up 3 percent. International revenue rose 16 percent to $1.2 billion, also helped by higher prices and strength in Latin America, where revenue rose 7 percent. Kellogg, based in Battle Creek, Mich., reaffirmed its earnings guidance for the full year of $3.42 and $3.49 per share. Analysts expect $3.48 per share. Published: Fri, Jul 29, 2011