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KELLOGG COMPANY REPORTS RECORD SECOND-QUARTER RESULTS

 KELLOGG COMPANY REPORTS RECORD SECOND-QUARTER RESULTS
 BATTLE CREEK, Mich., July 17 /PRNewswire/ -- Kellogg Company


(NYSE: K) today reported record second-quarter results. The company also announced a 14.3-percent dividend increase, a $50 million increase in its 1992 stock purchase program, and authorization for a medium-term, $300 million debt issue.
 Second-quarter net sales were $1.58 billion, up 12.0 percent over 1991. Net earnings were $168.1 million, up 10.4 percent, resulting in earnings per share rising to $0.70 from $0.63. Second-quarter results were aided by generally favorable currency exchange rates.
 For the first six months of 1992, sales were $3.10 billion, up 9.3 percent. Earnings were $364.3 million, up 15.5 percent, resulting in earnings per share rising to $1.52 from $1.31.
 Six-months earnings include a pre-tax gain of $58.5 million in the first quarter from the sale of Fearn International Inc., and a pre-tax charge of $22.4 million, also in the first quarter, from the disposition of convenience foods operations in Canada and other North American assets. Without these one-time events, six-months earnings would have been $338.5 million, up 7.3 percent, and earnings per share would have been $1.41.
 "These results reflect the continued growth of our business around the world," said Arnold G. Langbo, Kellogg Company chairman of the board and chief executive officer. "During the second quarter, our global ready-to-eat cereal volume increased by 7 percent, with particular strength in the United States. We expect that market conditions will remain extremely competitive; however, Kellogg people around the world are committed to meeting the challenges we face and to taking full advantage of the opportunities for substantial, long-term growth that lie ahead."
 Langbo announced that the Kellogg Company Board of Directors has approved an increase in the quarterly dividend to $0.32 per share from the current $0.28. The dividend will be payable Sept. 15, 1992, to shareholders of record at the close of business on Sept. 1, 1992. The increase indicates that 1992 will be Kellogg's seventh consecutive year of double-digit dividend increases.
 The board of directors also approved an additional Kellogg Company stock purchase program of $50 million for the period of July 17 through Dec. 31, 1992, bringing the total purchase authorizations for 1992 to $200 million. The board also authorized the issuance of $300 million of medium-term, fixed-rate debt for general corporate purposes.
 KELLOGG COMPANY AND SUBSIDIARIES
 CONSOLIDATED SALES AND EARNINGS
 (Millions, except share data)
 1992 Results are Unaudited
 Three Months Ended
 June 30 Percent
 1992 1991 Change
 Net sales $1,584.0 $1,413.7 12.0
 Interest and other revenue
 (deductions), net 1.3 1.5 ---
 1,585.3 1,415.2 ---
 Cost of goods sold 739.5 679.5 ---
 Selling and administrative
 expense 576.2 473.3 ---
 Interest expense 6.3 15.0 ---
 1,322.0 1,167.8 ---
 Earnings before income taxes 263.3 247.4 6.4
 Income taxes 95.2 95.1 ---
 Net earnings $168.1 $152.3 10.4
 Earnings per share $.70 $.63 11.1
 Dividends per share $.28 $.265 ---
 Six Months Ended
 June 30 Percent
 1992 1991 Change
 Net sales $3,099.1 $2,835.0 9.3
 Interest and other revenue
 (deductions), net 36.6 1.7 ---
 3,135.7 2,836.7 ---
 Cost of goods sold 1,458.2 1,377.7 ---
 Selling and administrative
 expense 1,092.0 909.6 ---
 Interest expense 13.5 31.1 ---
 2,563.7 2,318.4 ---
 Earnings before income taxes 572.0 518.3 10.4
 Income taxes 207.7 202.9 ---
 Net earnings $364.3 $315.4 15.5
 Earnings per share $1.52 $1.31 16.0
 Dividends per share $.56 $.53 ---
 Other revenue for the six months ended June 30, 1992, includes a $58.5 million gain ($.16 per share) on the sale of Fearn International Inc., and a one-time charge of $22.4 million ($.05 per share) in connection with the disposition of certain operations and assets in North America.
 Per-share amounts for 1991 have been restated to reflect the 2-for-1 stock split that took effect on Dec. 4, 1991.
 -0- 7/17/92
 /CONTACT: Neil G. Nyberg of Kellogg Company, 616-961-3799/
 (K) CO: Kellogg Company ST: Michigan IN: FOD SU: ERN


DH -- DE003 -- 0106 07/17/92 09:36 EDT
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Date:Jul 17, 1992
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