Kellogg has revealed that fourth quarter profits at the US’s largest cereal maker declined by 5% due to increased fuel, energy, commodity and benefit costs in the fourth quarter.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more


“We’ve faced significant cost inflation and difficult operating conditions in many of our businesses,” David Mackay, Kellogg’s chief executive officer, said during a conference call. “The volatility in commodity costs continues and will remain a challenge for the foreseeable future,” he added.


Revenue increased 8% during the fourth quarter, up from US$2.39bn to $2.50bn. However, Kellogg’s profits totalled $182.4m, or $0.45 per share, for the quarter ended 30 December, down from $192.4m, or $0.47 per share, in the comparable quarter of last year.


For the full year, net income was up 2%, increasing to $1bn, or $2.51 per share, from $980.4m, or $2.36 per share in fiscal 2005. Full year revenue increased 7%, up to $10.91bn from $10.18bn in 2005.


Despite further anticipated cost increases, Kellogg raised its 2007 outlook by a penny a share to $2.68-2.73 per share. Kellogg said it expects sales to grow by 4%.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

“We faced a difficult cost environment in 2006 and still achieved another year of results that met, or even exceeded, our targets. Equally as important, though, is that we achieved these results while making significant investment in the business, and in future growth.


“We will face more inflation in 2007, but we remain confident that we have the right strategy, operating principles, and business model. It is our continued focus and strong execution, driven by the strength of our organisation, that give us confidence that we will deliver dependable rates of growth in 2007, and beyond,” Mackay commented.