BATTLE CREEK, Mich. (AP) — Kellogg Co. says its third-quarter net income fell 14 percent, worse than expected, hurt by higher costs related to updating its supply chain and reinstating incentive compensation costs.
The world's largest cereal maker also lowered its earnings guidance below expectations. Company shares fell 5 percent in premarket trading. Kellogg and other food makers have raised prices to offset soaring costs for ingredients and fuel.
The maker of Frosted Flakes and Eggo waffles says net income fell to $290 million, or 80 cents per share, in the three months ended Oct. 1. That compares with $338 million, or 90 cents per share, last year. Analysts expected 89 cents per share.
Revenue rose 5 percent to $3.31 billion. Analysts expected $3.41 billion. North American revenue rose 4 percent to $2.2 billion.