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KELLOGG COMPANY EARNINGS PER SHARE UP 7 PERCENT; STOCK REPURCHASE AUTHORIZATION INCREASED BY $200 MILLION

 BATTLE CREEK, Mich., April 23 /PRNewswire/ -- Led by a strong performance from its North American business, Kellogg Company (NYSE: K) achieved record first-quarter earnings per share, net earnings, and net sales. The company also announced that it has fully utilized its $300 million stock repurchase authorization and that the board of directors has authorized the purchase of an additional $200 million in shares, bringing the total authorization in 1993 to $500 million.
 First-quarter earnings per share were $0.76 and net earnings were $179.2 million.
 Excluding one-time events, earnings per share rose to $0.74 from $0.69, up 7 percent, and net earnings were $173.6 million, up 5 percent, in comparison with a strong first quarter in 1992. Without the negative impact of currency exchange rates, earnings per share would have increased 9 percent and net earnings would have risen 7 percent.
 Net sales, at $1.52 billion, were up slightly over last year's strong performance, but would have been up 3 percent without the negative impact of currency exchange rates.
 The company's $500 million stock repurchase authorization for the year is more than double its 1992 repurchases, which totaled $217 million. Commenting on the accelerated repurchase program, Kellogg Chairman of the Board and Chief Executive Officer Arnold G. Langbo said, "The full utilization of our $300 million authorization and the board's approval of an additional $200 million authorization underscores our strong belief in the growth potential of Kellogg Company and our commitment to build value for our shareholders. Current market conditions have provided an excellent opportunity to purchase more shares."
 The company's global cereal sales volume increased by 1 percent during the first quarter, following a strong 7-percent global increase in the first quarter of 1992.
 "Our business continues to grow around the world," Langbo said. "We are particularly encouraged by the strength of our performance in the United States. Kellogg USA achieved sales growth in cereal and convenience foods, particularly Kellogg's Pop-Tarts toaster pastries.
 "We also are encouraged by upward consumption trends in cereal category volume outside North America, in spite of continued recessions in several major markets," Langbo said. "Marketing investments remain strong all over the world as we position our business for future growth, although we expect moderation in the rate of increase of marketing expenditures. We remain optimistic about our global growth prospects for the full year and the long term."
 Langbo continued: "I am pleased to report that our cereal plant construction projects at Riga, Latvia, and Bombay, India, are on schedule, with production expected to begin by the start of 1994 at Riga and later in 1994 at Bombay. We also expect to begin construction of our first cereal plant in China this summer near Guangzhou, with production expected by 1995."
 During the first quarter of 1993, the company sold Cereal Packaging Ltd., a wholly owned subsidiary of Kellogg Company of Great Britain, Limited, to Low & Bonar PLC, a United Kingdom packaging and plastics company. The sale resulted in a pre-tax gain of $32.2 million ($.10 per share). In addition, the company recognized a $29.5 million pre-tax charge ($.08 per share), primarily from the write-down of certain North American assets.
 These items are excluded from the earnings comparison above, as are the following one-time items attributed to the first quarter of 1992: an after-tax charge of $251.6 million ($1.05 per share) from adoption of Financial Accounting Standard No. 106, a $58.5 million pre-tax gain ($.16 per share) from the sale of Fearn International Inc., and a $22.4 million pre-tax charge ($.05 per share) from the disposition of convenience foods operations in Canada and other North American assets. FAS No. 106 requires that the estimated cost of postretirement benefits other than pensions be accrued over the period earned rather than expensed as incurred.
 KELLOGG COMPANY AND SUBSIDIARIES
 CONSOLIDATED SALES AND EARNINGS
 (millions, except share data)
 Three Months Ended
 March 31,
 1993 1992 Change
 (1993 results are unaudited)
 Net sales $1,518.4 $1,515.1 .2 pct
 Other revenue (deductions), net 6.5 35.3
 1,524.9 1,550.4
 Cost of goods sold 725.0 724.1
 Selling and administrative expense 522.4 517.5
 Interest expense 8.6 7.2
 1,256.0 1,248.8
 Earnings before income taxes and
 cumulative effect of change
 in accounting principle 268.9 301.6
 Income taxes 89.7 110.0
 Earnings before cumulative effect
 of change in accounting principle 179.2 191.6
 Cumulative effect of change in
 accounting for nonpension
 postretirement benefits (net of
 income tax benefit of $144.6) --- (251.6)
 Net earnings $179.2 ($60.0)
 Earnings per share:
 Before cumulative effect of
 change in accounting principle $.76 $.80
 Cumulative effect of change in
 accounting for nonpension
 postretirement benefits --- ($1.05)
 Net earnings per share $.76 ($.25)
 Dividends per share $.32 $.28 14.3 pct
 Other revenue for the three months ended March 31, 1993, includes a $32.2 gain ($24.1 after tax or $.10 per share) from the sale of Cereal Packaging Ltd., and a $29.5 charge ($18.5 after tax or $.08 per share) primarily from the write-down of certain North American assets.
 Other revenue for the three months ended March 31, 1992, includes a $58.5 gain ($39.2 after tax or $.16 per share) from the sale of Fearn International Inc., and a one-time charge of $22.4 ($13.5 after tax or $.05 per share) from the disposition of certain operations and assets in North America.
 Results for 1992 have been restated to reflect the adoption of FAS 106 during the first quarter of 1992.
 -0- 4/23/93
 /CONTACT: Richard E. Lovell of Kellogg Corporation, 616-961-3799/
 (K)


CO: Kellogg Company ST: Michigan IN: FOD SU: ERN

DH -- DE002 -- 9977 04/23/93 10:52 EDT
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Date:Apr 23, 1993
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