On June 25, Kellogg's voluntarily recalled 28 million boxes of cereal that may have an strong "waxy" smell or taste. The product defect is caused by elevated levels of a substance in the package lining which company officials and outside experts maintain is not harmful. It is unkown how much the recall is expected to cost the company and what its effect on sales will be.
An analyst at Janney Montgomery Scott downgraded Kellogg and the large cap food group from buy to neutral, citing concerns that the company is increasingly looking to cost savings, instead of higher sales, for bottom line growth.
A Credit Suisse analyst upgraded Coca-Cola to "outperform," citing long-term earnings potential for the company. Coca-Cola will benefit from the financial crisis because it will be able gain market share from faltering competitors.
Kellogs reported revenues of $12.8 billion, a 9% increase from the year before. There was also a substantial rise in net earnings, which totaled $1.1 billion (an increase of 4% from FY2007).
Kellogg's second quarter profit inched up 3.7% as price hikes offset higher advertising and input costs.
Kellogg posted a 1.9% drop in first-quarter net income as price increases and brand-building initiatives failed to fully offset the surging costs of ingredients and a higher tax rate. Gross margin slid to 41.9% from 42.7%. Like other food makers, Kellogg's margins have taken a hit as the company is unable to pass the large costs on to consumers.
the No. 1 U.S. cereal makerthat fourth-quarter profit slipped 3.3% as surging food-ingredient costs hampered sales growth.
Kellogg reports solid Q3 earnings, with not income rising 9% to $305 million and revenue rising 6% to $3B. Although earnings beats analyst projections, weak guidance sends the stock falling.
It was announced that more corn would be planted this year than any other year since World War II.
Kellogg reported lower fourth quarter earnings than expected with net income dropping $182.4 million from