Kellogg Reports Lower Quarter, Bigger Year

BATTLE CREEK - Jan 29/04 - SNS -- Kellogg Company reported net earnings for its 2003 fiscal year, which ended December 28, totalled $787.1 million, or $1.92 per diluted share, a 10% increase from last year's $720.9 million, or $1.75 per share.

Reported net earnings in the fourth quarter of 2003 were $188.0 million, or $0.46 per diluted share, compared to $191.0 million or $0.47 per share in the fourth quarter of 2002. The company said the drop stemmed from a significant increase in promotional expenses; substantial asset write-offs; and up-front costs related to cost-savings initiatives.

Reported net sales in 2003 increased by 6% to $8.8 billion, with fourth quarter sales growing 8%, to $2.1 billion. Internal net sales growth, which excludes foreign-currency translation and the impact of divestitures, was 4% for both periods.

Kellogg USA reported net sales growth of 2% in 2003, and 3% in the fourth quarter. On an internal basis, which excludes the impact of two small divestitures, its growth was 3% in 2003, and 4% in the fourth quarter.

The subscriber version of the article is available by Clicking here