Is Kellogg's Writing off 2010?

As The Times reported Tuesday (and we here at "The Biz" have suspected for a while) The Kellogg's Company is so disappointed with their sales figures for 2010 that they are publicly talking about a bounce back year in 2011.


Citing a June 25^th recall of their Apple Jacks, Corn Pops, Froot Loops and Honey Smacks brands of breakfast cereal boxes and lower sales figures for their Eggo brand toaster waffles, the Battle Creek, Michigan-based company reported a third-quarter income of $301 million a share for this year, compared to $353 for the same period last year. Earnings per share were down 14 percent to 80 cents. David Mackay, Kellogg Company's chief executive officer, said in October that the recall hit North American operating profits the hardest, plunging 13 percent.


So it’s no real surprise to hear that Mackay told The Times, “We are addressing the major issues that took us off course in 2010.”

With their CEO looking ahead before the company releases their fourth quarter numbers, investors in Kellogg’s shouldn’t be too hopeful for what they’re going to see in January. But it seems like the company is already trying to manage those expectations.

And we here at “The Biz” think that might be pretty gutsy considering that the grain shortages throughout Europe seem to be spreading and could very easily push the cost of grain upwards sooner than later.

This is definitely a “stay tuned” situation…