Kelloggs, the maker breakfast cereals, said today quarterly earnings jumped 35 per cent, boosted by a change in accounting rules.
Comparable sales rose 7 per cent, reflecting growth across Kellogg's business lines of cereals and snacks.The company continued to increase its promotional budget in the period.
"These are great results," said Prudential Securities analyst Mr John McMillin. "For Kellogg to do 7 per cent comparable sales growth, this is one of the better numbers you're seeing in the food industry right now."
Kelloggs posted net income of $203.5 million, or 49 cents a share, in the third quarter ended September 28th, compared with $150.3 million, or 37 cents, a year ago.
The company's year-earlier results included 3 cents a share for the integration of cookie maker Keebler and 8 cents a share related to the amortization of goodwill expense.
Net sales at Kellogg, which bought Keebler in March 2001, fell to $2.14 billion from $2.19 billion, reflecting fewer shipping days.