Kellogg today said quarterly earnings rose, the company raised its full-year earnings forecast as it benefited from a shift toward higher-priced brands such as Special K Red Berries cereal.
The company, the largest US cereal maker, said it earned $203.9 million, or 50 cents a share, in the second quarter, compared with $173.8 million, or 42 cents.
The results beat analysts' expectations of 47 cents a share on average, according to Reuters Research, a unit of Reuters Group Plc.
Net sales in the quarter rose 5.8 per cent to $2.25 billion. Favourable foreign currency added 3.1 percentage points to the sales boost.
Kellogg, which bought cookie maker Keebler in March 2001 for $4.5 billion, has been steadily expanding beyond ready-to-eat cereals. It is pushing ahead in snacks and convenience foods such as Nutri-Grain cereal bars.
The company is also reinvigorating cereal sales with kid-targeted cereals featuring Disney characters Buzz Lightyear and Mickey Mouse.
Kellogg boosted its earnings outlook for the full 2003 year to $1.88 to $1.90 a share, from a prior view of $1.86 to $1.90 a share.