Kellogg Earnings Rise, Ups Guidance

Cereal maker Kellogg (K) reported better-than-expected third-quarter results Thursday and boosted its full-year earnings guidance.

The maker of Corn Flakes and Special K said it earned $361 million, or 94 cents per share, last quarter, a 6% increase from $342 million, or 90 cents a share, in the same period a year ago.

Kellogg’s revenue eased 0.3% from a year earlier, to $3.3 billion.

Analysts had forecasted weaker results, projecting on average EPS of 84 cents on $3.27 billion in revenue.

Shares of the world’s largest cereal maker were recently up 2% at $51.01.

"The current economic environment has placed significant pressure on our consumers," CEO David Mackay said in a statement. "However, the environment also provided us with both the incentive and the opportunity to build an even stronger company for the future.”

Despite concerns about consumer spending, Kellogg raised its projections for 2009 internal operating profit growth to a range of 8% to 10%. It reaffirmed its full-year revenue growth guidance for 3% to 4%.

For 2010, Kellogg sees net sales growth of 2% to 3%.