Battle Creek / MG. (kc) The Kellogg Company reported a third quarter 2007 earnings per share increase of nine percent and raised its full-year EPS guidance by 0,01 USD to 2,72 USD – 2,75 USD per share. In addition, Kellogg increased its estimate of full-year investments in advertising and up-front costs related to cost-reduction initiatives.
Reported net earnings for the quarter were 305 million USD, a nine percent increase from last year´s 281 million USD. Earnings were 0,76 USD per diluted share, an increase of nine percent from last year´s 0,70 USD per share. This year´s third quarter results included up-front costs of approximately 0,05 USD of earnings per share, 0,03 USD more than was included in last year´s third quarter. In addition, the quarter´s tax rate of about 27 percent benefited from several discrete items.
«We achieved our goals by remaining focused on our game plan», said David Mackay, Kellogg´s chief executive officer. «We continue to lay the groundwork for future growth and reinvest into the business. Our third quarter advertising investment rose at a double-digit rate and we’re planning another increase in the fourth quarter. This investment gives us the confidence to once again raise our 2007 earnings guidance. In addition, we are now expecting increased investment in up-front costs».
Reported net sales in the quarter increased by six percent to three billion USD. Excluding the effect of foreign-currency translation, internal net sales growth was four percent, building on growth of six percent in the third quarter of last year (news release).