Kellogg reports sales slump

Kellogg, the US cereals and snacks group on Thursday reported a slump in first-quarter profit as it moves to integrate its Keebler acquisition, the Financial Times reports. The company said it earned $122.8m, or 30 cents a share, compared to $161.7m, or 40 cents a share in the year ago quarter. Kellogg​ purchased Keebler​, the number two biscuit and cracker maker in March for $4.5bn, including debt. The deal is expected to bring Kellogg about $10bn in annual sales and reduces Kellogg's dependence on cereal to about 50 per cent of sales. First-quarter results did not include sales or earnings from Keebler. Kellogg, which makes Nutri-Grain, Pop-Tarts and Rice Krispies, was expected to earn between 28 and 31 cents a share. The company said sales slipped to $1.71bn in the quarter, from $1.75bn a year earlier. Kellogg shares were trading 34 cents higher at $25.81 by midday in New York on Thursday. Source: Financial Times​