Kellogg slips in the first quarter
KELLOGG reported a 6% fall in volumes in the first quarter and warns that double-digit full-year earnings would be difficult to achieve.
The Michigan-based breakfast-cereal manufacturer says the reason for the poor outlook is competition in its core US domestic market.
After-tax profits were up 6.3% at $170.7 million, while operating profits, before interest expenses, were 7.8% higher, at $298.8m. Group sales declined 2.7% to $1.64bn.
Sluggish underlying volumes, despite various plant closures, and excess capacity, have meant competition in the US cereals market has been intense for some time. This led to sharp price cuts in 1996.
- Financial Times 27/04/98 page 28