Kellogg said today (29 July) that it saw net earnings decline 15% in the second quarter of 2010 due to the competition in the US cereals business and the impact of a product recall last month.
The US cereals giant booked net income of US$302m for the three months to 3 July, down 15% on the year.
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The company said “weakness” in the North American cereal category, lower sales of Eggo waffles and the voluntary recall of select packages of breakfast cereals in June had hit earnings.
Operating profit fell 13% to US$483m. Net sales, meanwhile, slid 5% to US$3.1m.
In North America, revenue declined 5%, driven by a 13% fall in retail cereal sales. Operating profit fell 15%.
Internationally, Kellogg posted a 5% decline in second-quarter sales. Net sales in Europe were down 3% due to “weakness” in the UK cereal category and lower results in from the company’s snacks business in Russia.
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By GlobalDataNet sales in Latin America rose 5% and by 3% in Asia-Pacific.
Click here for the full second-quarter earnings statement from Kellogg; check back later for coverage of the company’s conference call with Wall St analysts.
