Thursday, August 2, 2012

Hot Earnings: General Motors Company (NYSE:GM) & Kellogg Company (NYSE:K)

Breakfast cereal maker Kellogg Company (NYSE:K) second quarter profit fell on higher costs and weakness in the Eurozone though sales rose due to Pop-Tarts and demand in North America.

Its net profit for the June quarter was $301 million or 84 cents a share, down 12 percent from $343 million earned in the year-ago period. Revenues however were up 2 percent to $3.47 billion.

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Analysts had estimated earnings at 85 cents a share and revenues at $3.83 billion.

Kellogg's shares were up 3.3 percent at $49.39 on the NYSE.

From breakfast cereals to autos. General Motors Company(NYSE:GM) saw its second quarter profit dragged down 41 percent to $1.5 billion as weak demand from Europe affected revenues, which were down 5 percent to $37.6 billion.

GM's strong performance in North America and Asia were overshadowed by $361 million loss in Europe and $19 million loss in South America. In the comparable quarter in 2011, the company had made a profit of $102 million from its European sales.

Countries in the Eurozone are grappling with huge debts, mounting expenses, high fiscal deficit and are struggling to maintain consumer demand with unemployment rates rising.

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Still GM's earnings at 90 cents a share were much better than what the Street expected at 75 cents a share.

Shares of the automaker were up 1.8 percent at $19.31 on the NYSE.

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