June 2009 -- Sales and earnings were relatively flat in the first quarter of 2009 for consumer packaged goods maker Kellogg Co. First-quarter net earnings were $321 million, a 2% increase from last year's $315 million, while net sales declined 3% to $3.2 billion. Earnings per share were 84 cents, a 4% increase.
Kellogg said first-quarter results included an estimated 5 cents per share impact due to costs associated with peanut-related recalls.
In releasing its first-quarter earnings, Kellogg also announced that it planned to increase up-front cost investments for cost-savings initiatives from 14 cents per share to about 22 cents per share for 2009 in its effort to achieve a $1 billion savings target. Total up-front costs for cost-reduction initiatives were about 3 cents per share in the first quarter of 2009.
"For 2009 we will focus on driving solid top-line growth, considerable cost savings and strong reinvestment," stated CEO David Mackay.
