Cereal maker Kellogg said quarterly earnings rose 16 per cent, as lower finance costs and sales of higher-margin products such as wholesome snacks offset weakness in its cookie business.
Kellogg said it earned $237.4 million, or 57 cents a share, in the second quarter ended June 26th, compared with $203.9 million, or 50 cents a share, a year earlier.
Sales rose 6 per cent to $2.4 billion. Internal net sales, which exclude the impact of foreign exchange, rose 5 per cent.
Second-quarter North American sales rose 5 per cent, with retail cereal sales up 2 per cent in local currencies, and retail snacks up 7 per cent.
Kellogg's international division reported net sales growth of 9 per cent, or 5 per cent in local currencies, with strong results in Latin America offsetting some weakness in Australia and Korea.
The company backed its full-year profit forecast for earnings of $2.07 to $2.11 a share, up 8 per cent to 10 per cent from last year.
Shares of Kellogg reached three-month lows last week on investor concerns about increased competition in the cereal and snack bar categories, as well as a strengthening US dollar, which hurts the company's translation of overseas profits.
In addition, rivals such as Kraft Foods recently lowered their full-year earnings forecast amid the rising costs of commodities such as dairy.
Shares of Kellogg closed at $40.23 on the New York Stock Exchange on Friday.