Oct 29, 2002 2 min read

BATTLE CREEK, Mich. (AP) – Kellogg Co.’s profit climbed 35.4 percent in the third quarter, narrowly beating Wall Street expectations despite a 2.3 percent decline in sales. The world’s biggest cereal maker said Monday it earned $203.5 million, or 49 cents per share, for the three months ended Sept. 28 compared with $150.3 million, or 37 cents per share, during the third quarter of 2001.

The latest earnings beat the consensus forecast of 48 cents a share of analysts surveyed by Thomson First Call.

Net sales fell to $2.14 billion from $2.19 billion reported for the third quarter of 2001.

“The changes we made to our company last year were expected to create accelerated growth in 2002, and this acceleration continued in the third quarter,” said Carlos M. Gutierrez, Kellogg’s chairman and chief executive.

The company last year started moving away from competitive discounting and “toward a better business model” of rebuilding its brands and generating more cash flow, he said. Through the first three quarters of the year, Kellogg reported net earnings of $529.9 million, or $1.29 per share, compared with $349 million, or 86 cents per share, in 2001. Sales rose 11.9 percent to $6.32 billion from the $5.65 billion last year. The company reaffirmed it expects to earn $1.73 a share for the full year and said it expects to earn $1.86-1.90 per share for 2003. Thomson First Call said analysts expected earnings per share of $1.73 for 2002 and $1.90 for 2003. In addition to cereal, Battle Creek-based Kellogg makes Pop-Tarts, Eggo waffles and Famous Amos cookies.

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On the Net:

Kellogg Co., http://www.kelloggs.com