Kellogg Company Reports Strong Fourth-Quarter 2011 Result and Reaffirms Guidance for 2012
BATTLE CREEK, Mich., Feb. 2, 2012 (GLOBE NEWSWIRE) — Kellogg Company (NYSE:K) today announced that fourth quarter reported net sales increased to $3.0 billion, or by 5.4 percent from the fourth quarter of 2010. Internal net sales, which exclude the effects of foreign currency translation, increased by 6.0 percent over the same period. Fourth-quarter 2011 operating profit was $397 million, a reported increase of 20.3 percent; internal operating profit increased by 20.5 percent.
Full-year 2011 reported net sales increased to $13.2 billion, or by 6.5 percent from the $12.4 billion posted in 2010. Internal net sales increased by 4.5 percent over the same period. Reported full-year 2011 operating profit was $2.0 billion, a decline of 0.7 percent; internal operating profit, which excludes the effects of foreign currency translation, declined by 2.9 percent. This anticipated decline was the result of the company’s supply-chain initiatives, the reinstatement of incentive compensation costs, and continued high-levels of commodity inflation.
Full-year reported net earnings were $1.2 billion, or $3.38 per diluted share, an increase of 2.4% from full-year 2010 earnings of $3.30 per share. Full-year, currency-neutral 2011 earnings per share were unchanged from the previous year. Fourth quarter reported net earnings were $232 million, or $0.64 per diluted share, an increase of 25% from fourth quarter 2010 reported earnings of $0.51 per diluted share.
“In 2011 we started to build a foundation upon which we can grow,” said John Bryant, Kellogg Company’s president and chief executive officer. “We are pleased to have again posted very strong revenue growth and we have continued to make the investments necessary for future growth. Without the impact of the compensation costs and the supply-chain investment, our underlying operating profit increased in line with the company’s long-term target of mid single-digit growth. We will further improve our supply chain in 2012, but, as importantly, we will also focus our efforts on increasing investment in brand building and launching even stronger innovation.”