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Kellogg: Q2 Earnings, Revenue Top Forecasts

Its North American quarterly sales rose, while Europe's slipped


Kellogg (NYSE:K) announced on Thursday that it earned $301 million during the second quarter, down 12% from $343 million in the same period last year.

Quarterly revenue increased 2% to $3.47 billion, topping analyst forecasts of $3.38 billion, the Associated Press noted. Adjusted EPS came in at 89 cents, which also beat the 85 cents anticipated by Wall Street.

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Kellogg shares rose about 3% in Thursday afternoon trading as investors digested the results.

The cereal maker attributed its earnings decline to higher commodity prices and weakness in European sales.

The company recently purchased the Pringles snack food brand from Procter & Gamble (NYSE:PG) for $2.7 billion, part of Kellogg’s ongoing effort to diversify its product line away from breakfast foods.

Drawing the majority of its revenue from international sales, Pringles also offers Kellogg’s a beachhead in markets outside the U.S.

The company noted that during the second quarter, North American sales rose 5.9%, while overall overseas sales fell 3.8%, and European sales fell 3.6%. Latin American sales, by contrast, increased 6.8%.

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