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Kellogg’s profit decreased with 6.4 percents

The profits of the largest U.S. producer of cereal Kellogg decreased with 6.4 per cent annually, the report shows the company's third quarter. Main reason for this is worsening market performance in North America. For the third quarter, Kellogg reported a profit of 338 million dollars, or 90 cents a share. This coincided with the preliminary estimates of analysts. For the same period last year, the company had a profit of 361 million dollars, or 94 cents a share. The company revenue has dropped by 3.7 percent annually to 3.16 billion dollars. Sales in North America fell by 2.6 per cent, which is reflected strongly in Kellogg, as this market is realized about two thirds of the production company. Because of deteriorating Kellog expected lower performance throughout 2010. By contrast, North America, sales in Europe and Asia are increasing as a result of massive advertising campaign conducted by the company. The company Kellogg realized good decreasing of expenses and spendings, but even this did not supported the profits and financial report.
According to the company's management performance will remain weak next year.