Thursday, February 2, 2012

Seeking Alpha: Kellogg's Curious Quarter

Just as Kellogg (K) investors were getting used to the idea that 2012 was going to be a year of somewhat depressed results and necessary reinvestment, Kellogg posted a rather curious quarter. Though this company is still one of the best names in food to own for the long haul, investors with more short-term concerns had best be ready for some potentially choppy results this year.

Surprising Strength To Start The Fiscal Year
Revenue at Kellogg was a little stronger than expected, growing about 6% on an internal basis. Arguably the biggest surprise is that the company was able to balance a better than 6% boost in prices with less than 1% volume erosion. Growth was strong in both North America (up nearly 7%) and Latin America (up more than 10% in constant currency), while Europe was down about 1%. Internal growth of more than 8% in Asia was likewise a solid result.

Read the complete piece here:
Kellogg's Curious Quarter

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