Kellogg reaffirms guidance for year
BATTLE CREEK, Mich. (AP) — Kellogg Co. reaffirmed its full-year earnings guidance on Wednesday, saying that strong performance from its recently acquired Pringles brand offset costs for the anticipated costs a recent recall of Mini-Wheats cereal.
The company, based in Battle Creek, Mich., is one of the nation's largest food makers with products ranging from Corn Flakes cereal to Keebler cookies.
Kellogg expects to earn between $3.18 and $3.30 per share for the year. Analysts polled by FactSet were expecting the company to earn $3.34 per share for the year.
The company announced in February that it was buying Pringles. Kellogg said strong performance by Pringles, along with some changes in estimates for non-operating items offset the roughly $20 million to $30 million in costs expected for its recent recall.
Kellogg initiated a voluntary recall on Monday of certain packages of its Mini-Wheats Bite Size cereal because of the possible presence of a flexible metal mesh from a faulty manufacturing part.
The company said there have been no reports of injuries and that it was issuing the recall as a precaution. The company said 282,000 cases of products in the U.S. were included in the recall. It said Wednesday that retailers have likely removed most of the boxes from shelves by now.
Shares of Kellogg fell 15 cents to close at $51.43. Its shares are up 11 percent from a 52-week low of $46.33 in late July.