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Kellogg Returns To Profit In Q4

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Kellogg Returns To Profit In Q4

Kellogg is profitable once again after posting positive results for the final three months of 2013. The maker of Pringles, Pop Tarts, Corn Flakes and Frosties earned the American multinational food manufacturing company ¢818 million for the quarter ended 28 December.

That's compared to a loss of $32 million for the same period of 2012. Kellogg has faced for a long time now increased competition in the breakfast and snack industries as a result of soft demand from consumers. 

The swing in profit is being credited to a repricing of the company's assets based on market conditions.

Such pressures led the company in November to unveil cost-cutting plans that include reducing its global workforce by 7%, or roughly 2,000 jobs, over four years.

"Our expectations are that, over time, Project K will begin to provide us the fuel we need to drive growth in our categories, and across our businesses, in the years to come," said CEO and president John Bryant.

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However, Q4 net sales fell 1.7% to $3.5 billion, slightly below analysts expectations of $3.54 billion.

For the year as a whole, Kellogg's net income almost doubled to $1.81 billion. Operating profit was up 81.6% at $2.84 billion.

Full-year reported net sales increased by 4.2% to $14.8 billion.

© 2014 - European Supermarket Magazine by Enda Dowling

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