Kellogg Co. reported disappointing quarterly earnings and gave a weak outlook Thursday, hurt by costs related to supply chain improvements.
Kellogg, the world’s largest cereal maker with brands including Corn Flakes, Frosted Flakes and Rice Krispies, said net income was $290 million, or 80 cents per share, in the third quarter, down from $338 million, or 90 cents per share, a year earlier.
Net sales rose to $3.31 billion from $3.16 billion a year earlier.
The company lowered its profit expectations for the year, citing the weak third-quarter results and expected continued investments in the supply chain.
Kellogg said it now expects full-year earnings per share to be about flat, excluding currency fluctuations, which implies earnings of $3.27 to $3.33 per share. Including an estimated 8 cent-per-share benefit from foreign exchange, earnings are expected to range from $3.35 to $3.41.
The company had earlier forecast low single-digit profit growth. The company stood by its net sales growth target of 4 percent to 5 percent.
Kellogg operates a cookie-making facility in south Augusta.