BATTLE CREEK, MI (WKZO) Battle Creek based Kellogg Company cut its full-year outlook after a disappointing first-quarter performance. The world's largest cereal company cited weakness in its European business and in some categories in the U.S., and said it would continue to invest in future growth.
Kellogg now expects operating profit to fall two-percent to four-percent in 2012, from its prior forecast of flat or up slightly. It said sales should rise two-percent to three-percent, down from a prior forecast for growth of four-percent to five-percent.
Kellogg has a product line including Corn Flakes cereal, Cheez-It crackers and Eggo frozen waffles. Last November, Kellogg said it was spending an additional 70-million dollars in the second half of 2011 to improve its manufacturing after it suffered several blows, including food safety issues.