Kellogg returns to profit in 4Q, revenue dips
Kellogg is profitable again this fourth quarter, buoyed by the repricing of some assets based on market conditions.
The maker of Frosted Flakes, Pop Tarts, Eggo waffles and other items earned $818 million, or $2.24 per share, for the period ended Dec. 28. That compares with a loss of $32 million, or 9 cents per share, a year earlier.
This quarter included a $1.83 per share benefit from repricing certain assets, so-called "mark-to-market adjustments." Those adjustments were driven by the impact that asset returns and changes in interest rates had on pension plans, according to Kellogg.
Removing the benefit and other items, earnings were 83 cents per share, still a penny better than what analysts polled by FactSet had expected.
Revenue for the Battle Creek, Mich. company dipped 2 percent to $3.5 billion from $3.56 billion. Wall Street forecast slightly higher revenue of $3.54 billion.
Sales in North America fell 2.8 percent as sales for its U.S. morning foods and snacks divisions declined.
Sales slipped in Latin America and the Asia Pacific region but rose 4 percent in Europe, to $716 million.
Full-year net income climbed to $1.18 billion, or $4.94 per share, from $961 million, or $2.67 per share, in the prior year.
Adjusted earnings were $3.77 per share.
Annual revenue increased 4 percent to $14.79 billion from $14.2 billion.
For 2014, Kellogg Co. expects earnings per share to rise 1 percent to 3 percent.
Shares slipped less than 1 percent in premarket trading.
