Kellogg Company (NYSE:K) ‘s with introduction of new products, improved cereal sales and new pricing policy earned a profit of more than 14% during the 2nd quarter.
Kellogg’s CEO John Bryant said that like many other food companies, it has raised their product prices to setoff the high costs for raw ingredients and fuel.
The company proposes to increases the prices of its products-Frosted Flakes cereal and Nutri-Grain bars.
The company reported a net income of $343 million, or 94 cents per share, for the quarter ending on 2nd July in comparison with $302 million, or 79 cents per share, earned in the previous year. The revenue of the company went up by 11% to $3.39 billion.
However analyst expected an earning of 91 cents per share on revenue of $3.28 billion.
Kellogg’s revenue in North American went up by 8 % as sales for cereal and other new products such gluten-free Rice Krispies grew.
The International revenue of the company rose by 16%,
With the buyback of shares the company increased its earning per share for the quarter.
The revenue growth guidance of the company was raised to a range of 4 to 5% for the year, more than 4% in comparison to last year. The earning of the company was assured at $3.42 and $3.49 per share. However Analysts expected an earning of $3.48 per share.
The company Share value went up sharply in morning trading but saw a downfall of 29 cents to $55.26 during the midday trading.
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