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KELLOGG COMPANY SALES UP 7 PERCENT FROM 1991

 BATTLE CREEK, Mich., Jan. 19 /PRNewswire/ -- Kellogg Company (NYSE: K) today announced that its net sales for the year ended Dec. 31, 1992, were $6.19 billion, up 7 percent over 1991. Excluding 1991 sales by Fearn International Inc. (which was sold in January 1992), 1992 net sales were up 9 percent.
 Net earnings for 1992, without the effects of an accounting change and a net gain from divestitures, were $675.1 million, up 11 percent, and earnings per share were $2.83, up 13 percent.
 Fourth-quarter 1992 sales were $1.42 billion, down 2 percent from the fourth quarter of 1991. Excluding 1991 sales by Fearn and the negative impact of currency exchange rates, fourth-quarter 1992 sales were up 4 percent. Excluding the accounting change, fourth-quarter earnings were $132.5 million, up 12 percent, and earnings per share were $0.56, up 14 percent.
 "Our record annual results reflect the continued growth of our business around the world," said Kellogg Company Chairman of the Board and Chief Executive Officer Arnold G. Langbo. "Our global cereal volume was at a record level, and we are very encouraged that consumers on all continents are continuing to increase their consumption of our nutritious grain-based products. We are investing heavily in our business to take advantage of global growth opportunities and to continue building shareholder value."
 During the fourth quarter of 1992, Kellogg Company adopted Financial Accounting Standard No. 106. The Standard was applied retroactively to Jan. 1, 1992, and previously reported 1992 results were restated. 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. The net effect of the adoption was a pre-tax charge to 1992 earnings of $424.8 million ($1.13 per share).
 In the first quarter of 1992, the company realized a $58.5 million pre-tax gain ($0.16 per share) from the sale of Fearn International Inc. and incurred a pre-tax charge of $22.4 million ($0.05 per share) from the disposition of convenience foods operations in Canada and other North American assets.
 Including the accounting change and the net gain from divestitures, 1992 full-year earnings were $431.2 million, compared to $606 million in 1991, and earnings per share were $1.81, compared to $2.51 in 1991. Including the accounting change, 1992 fourth-quarter earnings were $127.9 million, compared to $118.2 million in 1991, and earnings per share were $0.54, compared to $0.49 in 1991.
 KELLOGG COMPANY AND SUBSIDIARIES
 CONSOLIDATED SALES AND EARNINGS
 (millions, except share data)
 (1992 results are unaudited)
 Three months ended
 Dec. 31, Percent
 1992 1991 Change
 Net sales $1,420.8 $1,445.3 - 1.7
 Interest and other revenue
 (deductions), net (3.4) 5.6
 1,417.4 1,450.9
 Cost of goods sold 722.1 719.1
 Selling and administrative
 expense 485.2 525.5
 Interest expense 7.8 12.9
 1,215.1 1,257.5
 Earnings before income taxes
 and cumulative effect of
 change in accounting
 principle 202.3 193.4 4.6
 Income taxes 74.4 75.2
 Earnings before cumulative
 effect of change in
 accounting principle 127.9(a) 118.2
 Cumulative effect of change
 in accounting for nonpension
 postretirement benefits --- ---
 Net earnings $127.9 $118.2 8.2
 Earnings Per Share:
 Before cumulative effect of
 change in accounting
 principle $0.54 $0.49 10.2
 Cumulative effect of change
 in accounting for nonpension
 postretirement benefits --- ---
 Net earnings per share $0.54 $0.49
 Dividends per share $0.32 $0.28 14.3
 12 months ended
 Dec. 31, Percent
 1992 1991 Change
 Net sales $6,190.6 $5,786.6 7.0
 Interest and other revenue
 (deductions), net 36.8 14.6
 6,227.4 5,801.2
 Cost of goods sold 2,987.7 2,828.7
 Selling and administrative
 expense 2,140.1 1,930.0
 Interest expense 29.2 58.3
 5,157.0 4,817.0
 Earnings before income taxes
 and cumulative effect of
 change in accounting
 principle 1,070.4 984.2 8.8
 Income taxes 387.6 378.2
 Earnings before cumulative
 effect of change in
 accounting principle 682.8(b) 606.0
 Cumulative effect of change
 in accounting for nonpension
 postretirement benefits (251.6) ---
 Net earnings $431.2 $606.0 -28.8
 Earnings Per Share:
 Before cumulative effect of
 change in accounting
 principle $2.86 $2.51 13.9
 Cumulative effect of change
 in accounting for nonpension
 postretirement benefits (1.05) ---
 Net earnings per share $1.81 $2.51
 Dividends per share $1.20 $1.075 11.6
 (a) The $127.9 is comprised of the following: $132.5, earnings from operations; and $4.6 FAS 106 current year incremental charge.
 (b) The $682.8 is comprised of the following: $675.1, earnings from operations; $25.8, gain from sale of Fearn International Inc. less the one-time charge from dispositions; and $18.1, FAS 106 current year incremental charge.
 Per-share amounts for 1991 have been restated to reflect the 2-for-1 stock split that took effect on Dec. 4, 1991.
 KELLOGG COMPANY
 Effect of Adoption of FAS No. 106
 1992 Quarters
 (millions)
 1st 2nd 3rd 4th Total
 Reduction in earnings before
 income taxes and cumulative
 effect of change in
 accounting principle $7.1 $7.1 $7.1 $7.2 $28.5
 Income taxes (2.6) (2.6) (2.6) (2.6) (10.4)
 Reduction in earnings
 before cumulative effect
 of change in accounting
 principle 4.5 4.5 4.5 4.6 18.1
 Cumulative effect of change
 in accounting for
 nonpension postretirement
 benefits 251.6 --- --- --- 251.6
 Reduction in net
 earnings $256.1 $4.5 $4.5 $4.6 $269.7
 Reduction in net earnings
 per share after adoption
 of FAS No. 106 $1.07 $.02 $.02 $.02 $1.13
 -0- 1/19/93
 /CONTACT: Richard E. Lovell of Kellogg Company, 616-961-3799/
 (K)


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

DH-ML -- DE001 -- 6160 01/19/93 09:07 EST
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