• August 1, 2008

The food giant says second-quarter earnings per share grew 9% with an 11% increase in sales.

Results were driven by strong execution, innovation and price realization, and were achieved after absorbing significant cost inflation, per the company.

Reported net earnings for the quarter were $312 million, a 4% increase over last year's $301 million. Earnings were $0.82 per diluted share versus last year's $0.75, an increase of 9%. The second-quarter performance included the impact of significantly higher commodity inflation and a double-digit increase in advertising spending offset by lower upfront costs and a lower tax rate.

"Our first-half performance provides further evidence of the strength of our business model and strategy," said David Mackay, Kellogg's CEO, in a statement. "Despite significant inflation headwinds, we capitalized on our momentum to further increase our investment in future growth. We increased our earnings guidance and acquired two businesses in emerging markets within the first half of the year, and we continue to utilize our strong cash flow to return profits to our shareholders through dividends and share repurchases."--Nina M. Lentini