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KELLOGG COMPANY REPORTS RECORD THIRD-QUARTER EARNINGS PER SHARE OF 90 CENTS

 BATTLE CREEK, Mich., Oct. 15 /PRNewswire/ -- Kellogg Company (NYSE: K) today reported record third-quarter earnings per share of 90 cents, up 7 percent over the 84 cents earned last year. Third- quarter earnings were a record $209.3 million, up 5 percent. Despite global cereal volume growth of 2 percent, sales were virtually unchanged at $1.67 billion due to the negative impact of foreign currency exchange rates. Excluding the impact of exchange, third-quarter earnings per share would have been up 14 percent, earnings up 11 percent and sales up 6 percent.
 For the nine months ended Sept. 30, excluding all one-time events, earnings per share were $2.26, up 2 percent; earnings were $525.6 million, down 1 percent and sales were $4.7 billion, down 1 percent. If the negative impact of foreign currency exchange rates were also excluded, nine-months earnings per share would have been up 6 percent, earnings up 3 percent, and sales up 4 percent. Including all one-time items, except for the cumulative effect of adopting Financial Accounting Standard No. 106, nine-months earnings per share were $2.28, down 2 percent, and earnings were $531.2 million, down 4 percent.
 "We are pleased with our third-quarter results, which were achieved in comparison with a strong third quarter last year," said Arnold G. Langbo, Kellogg Company chairman of the board and chief executive officer. "Our results were driven by a solid operational performance and by cereal volume growth in both in the United States and international markets. We continue to face challenging market conditions around the world. However, the fundamentals of our business -- nutrition, value and our global leadership -- continue to be very favorable, and we are optimistic that we can deliver record results this year and low double-digit growth in earnings per share over the long term."
 KELLOGG COMPANY AND SUBSIDIARIES
 CONSOLIDATED SALES AND EARNINGS
 (millions, except share data)
 Three months ended
 Sept. 30 Pct.
 (1993 results are unaudited) 1993 1992 Change
 Net sales $1,669.2 $1,670.7 (.1)
 Other revenue (deductions), net (3.8) 3.6
 1,665.4 1,674.3
 Cost of goods sold 771.9 796.4
 Selling and administrative expense 561.4 559.6
 Interest expense 9.4 7.9
 1,342.7 1,363.9
 Earnings before income taxes and
 cumulative effect of change in
 accounting principle 322.7 310.4
 Income taxes 113.4 110.7
 Earnings before cumulative effect
 of change in accounting principle 209.3 199.7 4.8
 Cumulative effect of change in accounting
 for nonpension postretirement benefits
 (net of income tax benefit of $144.6) --- ---
 Net earnings $209.3 $199.7
 Earnings per share:
 Before cumulative effect of change
 in accounting principle $.90 $.84 7.1
 Cumulative effect of change in accounting
 for nonpension postretirement benefits --- ---
 Net earnings per share $.90 $.84
 Dividends per share $.34 $.32 6.3
 Nine months ended
 Sept. 30, Pct.
 (1993 results are unaudited) 1993 1992 Change
 Net sales $4,729.2 $4,769.8 (.9)
 Other revenue (deductions), net 2.8 40.2
 4,732.0 4,810.0
 Cost of goods sold 2,252.8 2,265.6
 Selling and administrative expense 1,645.9 1,654.9
 Interest expense 27.2 21.4
 3,925.9 3,941.9
 Earnings before income taxes and
 cumulative effect of change in
 accounting principle 806.1 868.1
 Income taxes 274.9 313.2
 Earnings before cumulative effect
 of change in accounting principle 531.2 554.9 (4.3)
 Cumulative effect of change in accounting
 for nonpension postretirement benefits
 (net of income tax benefit of $144.6) --- (251.6)
 Net earnings $531.2 $303.3
 Earnings per share:
 Before cumulative effect of change
 in accounting principle $2.28 $2.32 (1.7)
 Cumulative effect of change in accounting
 for nonpension postretirement benefits --- (1.05)
 Net earnings per share $2.28 $1.27
 Dividends per share $.98 $.88 11.4
 Other revenue for the nine months ended Sept. 30, 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 nine months ended Sept. 30, 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- 10/15/93
 /CONTACT: Richard E. Lovell of Kellogg Company, 616-961-3799/
 (K)


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

JG-KR -- DE001 -- 2592 10/15/93 08:41 EDT
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Publication:PR Newswire
Date:Oct 15, 1993
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