BATTLE CREEK (WKOW) -- Bad news for a major cereal company in Michigan. Kellogg Co.'s third-quarter net income fell 6 percent. The company reports that cereal sales softened, and competition intensified after a recent cereal recall.
The world's largest cereal maker had warned investors it would be a weak quarter and lowered its guidance twice in the past few months. It gave a cautious 2011 outlook on Tuesday.
Kellogg, whose brands include Eggo and Keebler, earned $338 million, or 90 cents per share, for the period ended Oct. 2. That's down from $361 million, or 94 cents per share, a year ago.
Revenue dropped 4 percent to $3.16 billion. The results were in line with analysts' expectations. Kellogg anticipates low single-digit increases in 2011 earnings per share and internal sales.