BATTLE CREEK, Mich. (AP) — Food maker Kellogg Co. says its first-quarter net income fell 2 percent, hurt by declining demand in Europe and higher raw material costs.
The cereal and snack maker, known for its Frosted Flakes cereal, Eggo waffles and Keebler cookies, on Monday had cut its guidance for the year because of high ingredient costs, weak consumer spending and an economic slowdown in Europe.
For the three months ended March 31, Kellogg says net income fell to $358 million, or $1 per share, from $366 million, or $1 per share last year, matching analyst expectations, according to FactSet. Contracts related to its planned $2.7 billion Pringles acquisition added $26 million to net income.
The Battle Creek, Mich., company's revenue fell 1 percent to $3.44 billion. Analysts expected revenue of $3.52 billion.