Kellogg's second-quarter earnings top Wall Street expectations
BATTLE CREEK — Kellogg Co. Thursday exceeded Wall Street expectations, reporting a second-quarter net income of $326 million.
On a per-share basis, the Battle Creek-based company said it had net income of 95 cents. Earnings, adjusted for non-recurring costs, came to $1.18 per share.
The average estimate of nine analysts surveyed by Zacks Investment Research was for earnings of $1.05 per share.
The maker of Frosted Flakes, Pop Tarts and Eggo waffles posted revenue of $3.86 billion in the period, also topping Street forecasts. Eight analysts surveyed by Zacks expected $3.64 billion.
In June, the company announced that it will split into three companies, expected to be complete by the end of 2023. The the corporate headquarters for its largest entity, focused on snack foods, will move to Chicago while its North American cereal and plant-based foods businesses will remain based in Battle Creek.
The snack business, which accounts for about 80% of Kellogg sales and includes products such as Cheez-Its, Pringles, Eggo Waffles and international cereals, will maintain a campus in Battle Creek, the company said.
MORE: Kellogg Co. CEO Steve Cahillane: 'We remain deeply committed to Battle Creek'
'We are supporting them': Battle Creek city leaders pledge to work with Kellogg as it transforms
Kellogg to cut 212 jobs in Battle Creek by 2023
"Our improved full-year outlook incorporates not only our better-than-expected results of the first half, but also confidence in our ability to continue to manage through the current supply and cost challenges while sustaining momentum in our world-class brands," Kellogg CEO and Chairman Steve Cahillane said in a statement. "And even as we prepare for one of our biggest portfolio transformations yet, the proposed separation into three independent companies, we remain laser focused on delivering on this improved outlook."
Kellogg's was founded in Battle Creek by Will Keith Kellogg in 1906 as "Battle Creek Toasted Corn Flake Company." Along with its world headquarters and the Porter Street plant, the city is also home of the W.K. Kellogg Foundation, which has one of the largest endowments in the world.
Battle Creek Enquirer reporter Nick Buckley contributed to this report. He can be reached at nbuckley@battlecreekenquirer.com or 269-966-0652. Follow him on Twitter:@NickJBuckley
This article originally appeared on Battle Creek Enquirer: Kellogg's second-quarter earnings top Wall Street expectations
