Cash Flow and Balance Sheet
The company ended the quarter with cash and cash equivalents of $582 million, total long-term debt of $5.3 billion and shareholders’ equity of $2.3 billion.
Kellogg generated free cash flow of $877 million through the third quarter of 2011. Kellogg also repurchased nearly $690 million in shares through the third quarter of 2011; under its $2.5 billion three-year share repurchase authorization.
Commodity cost Increase: Kellogg’s margins continue to be negatively impacted by the rising cost of input, such as corn, soybean oil, sugar, and cocoa among other things.
Increasing Competition: The Company will continue to face severe competition in both snacks and cereals.
Higher Employee-Related Costs: Healthcare and pension costs are higher, affecting Kellogg’s bottom-line growth
Private Label Growth: The increased market share uptake by private labels continues to be a big concern for Kellogg.
Currency Risk: Kellogg faces currency risk due to its international exposure. Kellogg generates 40NaV of its operating income outside the US, and is unable to hedge currency translation.
Created by: WikiMigrationBot. Last Modification: Thursday 03 of June, 2010 07:32:37 CDT by WikiMigrationBot.