Mich.-based cereal company sees profits

BATTLE CREEK, Mich. (AP) - Kellogg Co. said Thursday that shoppers' loyalty to its cereal brands helped boost its profit 6 percent in the third quarter.

The food maker, whose products include Pop-Tarts, Cheez-It crackers and Rice Krispies cereal, earned $361 million, or 94 cents per share, for the period ended Oct. 3. That's up from $342 million, or 89 cents per share, in the same period a year earlier.

Revenue was nearly flat at $3.28 billion.

The performance bested the predictions of analysts surveyed by Thomson Reuters, who were looking for earnings of 84 cents per share on sales of $3.27 billion. Analysts' estimates normally exclude one-time items.

Consumers have stayed true to Kellogg's brand-name products during the economic downturn, particularly in North America where cereal sales have been strong. Its products are seen by many as a cheap meal, which has also helped as more consumers eat meals at home.

The company reported 2 percent internal sales growth from its North American retail cereal business during the quarter.

Kellogg, based in Battle Creek, Mich., also lifted its full-year earnings guidance. It now expects a 2009 earnings per share increase of 10 percent to 12 percent, up from a prior forecast for 8 percent to 10 percent growth. The company had 2008 profit of $2.99 per share, which implies 2009 earnings of $3.29 to $3.35 per share.

Analysts anticipate a profit of $3.17 per share for the year.