On Tuesday, cereal maker Kellogg
- Sales rose by nearly 8% to $2.58 billion.
- Earnings, however, fell 5% to $182 million, or $0.45 per share, as higher fuel, energy, and commodity costs ate into margins.
- Free cash flow for the year (operating cash flow minus capital spending) increased 23% to $957 million.
- Kellogg has a one-star rating in Motley Fool CAPS. To add your opinion to the community, join the service for free today.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Avg. Est. |
Q4 2006 |
Q4 2005 |
Change |
|
|---|---|---|---|---|
|
Sales |
$2,530 |
$2,584 |
$2,394 |
7.9% |
|
Net Profit |
-- |
$182 |
$192 |
(5.2%) |
|
EPS |
$0.46 |
$0.45 |
$0.47 |
(4.3%) |
|
Diluted Shares |
401 |
413 |
(2.8%) |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q4 2006 |
Q4 2005 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
43.33% |
44.44% |
(1.11) |
|
Operating Margin |
13.33% |
14.38% |
(1.05) |
|
Net Margin |
7.06% |
8.04% |
(0.98) |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q4 2006 |
Q4 2005 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$411 |
$219 |
87.4% |
|
Accounts Rec. |
$945 |
$879 |
7.5% |
|
Inventory |
$824 |
$717 |
14.9% |
|
Liabilities |
Q4 2006 |
Q4 2005 |
Change |
|---|---|---|---|
|
Accounts Payable |
$910 |
$883 |
3.1% |
|
Long-Term Debt |
$3,053 |
$3,703 |
(17.5%) |
Learn the ways of the balance sheet.
Cash Flow Highlights
|
FY 2006 |
FY 2005 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
$1,411 |
$1,143 |
23.4% |
|
Capital Expenditures |
$453 |
$374 |
21.1% |
|
Free Cash Flow |
$957 |
$769 |
24.5% |
Find out why Fools always follow the money.
Related companies:
-
General Mills
(NYSE:GIS) -
Kraft Foods
(NYSE:KFT) -
ConAgra Foods
(NYSE:CAG) -
H.J. Heinz
(NYSE:HNZ)
Related Foolishness:
- Foolish Forecast: Kellogg Looks Cracklin' Good
- Steady Performance at Kellogg
- Kellogg's Mass Organics
- Nothing Flaky at Kellogg
Heinz and Kraft are Motley Fool Income Investor recommendations. If you're interested in finding great stocks that pay you dividends to wait, take the newsletter for a free 30-day spin.
Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.
At the time of publication, Fool contributor Rich Duprey had no positions in any of the companies mentioned in the article. Fool rules are here.
