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KELLOGG COMPANY REPORTS 2ND-QUARTER EARNINGS PER SHARE CONSISTENT WITH PREVIOUS ANNOUNCEMENT; INCREASES QUARTERLY DIVIDEND

 BATTLE CREEK, Mich., July 23 /PRNewswire/ -- Consistent with its previously released announcement, Kellogg Company (NYSE: K) today reported second-quarter earnings per share of $0.62. The company also announced an increase in its common stock dividend and authorization by the Board of Directors of a $200-million debt issue.
 The second-quarter earnings per share are down 9 percent from the $0.68 the company earned in the second quarter of 1992. Earnings were $142.7 million, down 13 percent, and sales were $1.54 billion, down 3 percent. Without the impact of unfavorable foreign currency exchange rates, earnings per share would have been down 6 percent, earnings down 9 percent, and sales up 1 percent.
 On May 24, the company announced that it anticipated a decline in second-quarter earnings per share of about 10 percent, citing the unfavorable exchange rates, continued recessionary conditions in several major markets, and trade inventory adjustments.
 "Despite this combination of factors which impacted our performance during the quarter, we expect record results for the full year and we remain committed to delivering low double-digit growth in earnings per share over time," said Arnold G. Langbo, Kellogg Company chairman of the board and chief executive officer.
 For the first six months of 1993, excluding all one-time events, earnings per share were $1.36, down 1 percent; earnings were $316.3 million, down 4 percent; and sales were $3.06 billion, down 1 percent. If the negative impact of foreign currency exchange rates were also excluded, six-month earnings per share would have been up 2 percent, earnings down 1 percent and sales up 2 percent. Including all one-time items, except for the cumulative effect of adopting Financial Accounting Standard No. 106, six-months earnings per share were $1.38, down 7 percent, and earnings were $321.9 million, down 9 percent.
 The new dividend of $0.34 per share, up from $0.32, is payable Sept. 15, 1993, to shareholders of record at the close of business on Sept. 1, 1993.
 The $200-million debt authorization is for medium-term, fixed-rate securities for general corporate purposes.
 KELLOGG COMPANY AND SUBSIDIARIES
 CONSOLIDATED SALES AND EARNINGS
 (millions, except share data)
 Three months ended
 June 30, Pct.
 (1993 results are unaudited) 1993 1992 Change
 Net sales $1,541.6 $1,584.0 (2.7)
 Other revenue (deductions), net 0.1 1.3
 1,541.7 1,585.3
 Cost of goods sold 755.9 745.1
 Selling and administrative expense 562.1 577.8
 Interest expense 9.2 6.3
 1,327.2 1,329.2
 Earnings before income taxes and
 cumulative effect of change in
 accounting principle 214.5 256.1
 Income taxes 71.8 92.5
 Earnings before cumulative effect
 of change in accounting principle 142.7 163.6 (12.8)
 Cumulative effect of change in accounting
 for nonpension postretirement benefits
 (net of income tax benefit of $144.6) --- ---
 Net earnings $142.7 $163.6
 Earnings per share:
 Before cumulative effect of change
 in accounting principle $.62 $.68 (8.8)
 Cumulative effect of change in accounting
 for nonpension postretirement benefits --- ---
 Net earnings per share $.62 $.68
 Dividends per share $.32 $.28 14.3
 Six months ended
 June 30, Pct.
 (1993 results are unaudited) 1993 1992 Change
 Net sales $3,060.0 $3,099.1 (1.3)
 Other revenue (deductions), net 6.6 36.6
 3,066.6 3,135.7
 Cost of goods sold 1,480.9 1,469.2
 Selling and administrative expense 1,084.5 1,095.3
 Interest expense 17.8 13.5
 2,583.2 2,578.0
 Earnings before income taxes and
 cumulative effect of change in
 accounting principle 483.4 557.7
 Income taxes 161.5 202.5
 Earnings before cumulative effect
 of change in accounting principle 321.9 355.2 (9.4)
 Cumulative effect of change in accounting
 for nonpension postretirement benefits
 (net of income tax benefit of $144.6) --- (251.6)
 Net earnings $321.9 $103.6
 Earnings per share:
 Before cumulative effect of change
 in accounting principle $1.38 $1.48 (6.8)
 Cumulative effect of change in accounting
 for nonpension postretirement benefits --- (1.05)
 Net earnings per share $1.38 $.43
 Dividends per share $.64 $.56 14.3
 Other revenue for the six months ended June 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 six months ended June 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- 7/23/93
 /CONTACT: Richard E. Lovell of Kellogg, 616-961-3799/
 (K)


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

DD-SB -- DE002 -- 5002 07/23/93 08:49 EDT
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Date:Jul 23, 1993
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