Milling & Baking News - November 2, 2004 - (Page 1)

Theinewsweeklyiofigrain-basedifoods / Kellogg's outlook brightens after sales gain in cookies, crackers BATTLE CREEK, MICH. - In the past few years, Kellogg Co. succeeded in turning around a ready-to-eat cereal business that had grown stale. If the company's third-quarter earnings results provide any indication, the company is poised for the same level of success with its biscuit and crackers portfolio. Sales growth in cookies, crackers and toaster pastries, in some instances defying weak category trends, helped Kellogg's quarterly profit exceed market expectations and allowed the company to raise its earnings projections for the entire year. Kellogg said its earnings in the quarter LATE FROZEN GRAIN-BASED FOODS industry perspective ended Sept. 25 rose 7% to $247 million, or 59c per share, from $231.3 million, or 56c per share, in the same period last year. Revenue in the quarter also grew 7% to $2.46 billion from $2.28 billion as internal sales - measuring growth minus the impact of foreign currency, acquisitions, divestitures and shipping-period differences - increased 4.8%. The per-share results surpassed by 4c the consensus projection of Wall Street analysts, and investors responded by sending Kellogg's shares to a new all-time high of $43.50 per share, adjusted for splits and Continued on Page 12 NEWS Story on Page 23 CHICAGO - The board of directors of Sara Lee Corp. last week approved an increase in the company's annual stock dividend to 79c per share from 75c previously. The company will pay a corresponding new quarterly dividend of 19.75c per share Jan. 3 to shareholders of record at the close of business Dec. 1. C. Steve McMillan, chairman and chief executive officer, noted that the company has raised its dividend by 27% in the past 14 months. The new annual threshold marks the 29th Continued on Page 10 Sara Lee boosts dividend Bunge shares soar to all-time high as results yield more good news WHITE PLAINS, N.Y. - Another quarter of strong fiscal growth prompted Bunge Ltd. to raise its earnings projections for all of 2004 and boost the base from which it predicts long-term earnings growth. Touting a strong performance across all three of its main business lines - agribusiness, fertilizer and food products - Bunge said its third-quarter earnings more than doubled to $182 million, or $1.53 per share, NOVEMBER 2, 2004 compared with $89 million, or 88c per share, in the same period last year. The results also more than doubled Wall Street's consensus expectation of 82c, based on analysts surveyed by Thomson One Analytics. Revenue in the quarter ended Sept. 30 grew 13% to $6.56 billion from $5.78 billion last year, even though the company's sales volume Continued on Page 17 inside CSM merging three ingredient units under H.C. Brill name CHICAGO - CSM n.v., which is a leading baking ingredient supplier in North America, said last week it will combine three of its U.S. businesses into a single operating company. Under the plan, Baker & Baker and Henry & Henry will be combined with H.C. Brill and will operate under the H.C. Brill Co. name. The combination is intended to take advantage of the "synergies afforded by CSM operating companies," but the individual businesses' full product and brand assortments will be retained, CSM said. The move is the latest in what has been an intermittent process of consolidation CSM has pursued in connection with its massive acquisition of baking ingredient Continued on Page 34 THIS WEEK Earnings, sales climb at Canada Bread 16 Ingredient Presidential candidates brief on food safety 20 AIPC to go new direction with low-carb pasta line Week 35 39

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Milling & Baking News - November 2, 2004