Kellogg’s outlook disappoints

Kellogg reported a disappointing quarterly profit and gave a weak outlook yesterday, as it spends more to improve its manufacturing following a massive cereal recall last year. Kellogg, the world’s biggest cereal maker with brands including Corn Flakes and Rice Krispies, cut its 2011 profit forecast and said earnings in 2012 would be below its long-term targets. Net income was $290m ($181.6m), in the third quarter, down from $338m a year earlier. Net sales rose five per cent to $3.31bn.