Battle Creek / MG. (kc) Kellogg Company reported strong first quarter 2008 sales growth of ten percent and operating profit growth of nine percent. These results were driven by innovation, recent price increases and effective brand building and were achieved after absorbing significant cost inflation. In addition, the Company´s Board of Directors announced plans to increase the quarterly dividend by ten percent beginning in the third quarter.
Reported net earnings for the quarter were 315 million USD, a two percent decrease from last year´s 321 million USD. Earnings were 0,81 USD per diluted share versus last year´s 0,80 USD. First quarter 2007 results included a discrete tax benefit resulting in an effective tax rate of 24 percent versus this quarter´s 30 percent rate. In addition, the Company has completed this year´s 650 million USD share repurchase program.
«Our continued focus on executing our business model paid off during the first quarter», said David Mackay, Kellogg´s chief executive officer. «We posted strong results, despite the impact of higher commodity inflation as well as increased advertising and up-front investments. As a sign of our confidence, the Board of Directors announced its plans for a ten percent increase in the quarterly dividend starting in the third quarter».
Reported net sales in the first quarter of 2008 were 3,3 billion, an increase of ten percent from the first quarter of 2007. Internal net sales growth, which excludes the effect of foreign-currency translation and acquisitions, was five percent (press release).
