Financial Roundup

02 November 2005

Global (calendar Q3)

  • Hitachi
       Japanese electronics giant Hitachi posted a 48% fall in quarterly profit, hurt by its lossmaking hard disk-drive operations. The company has cut its full year forecast by more than expected, driving shares lower.
       The group's net profit came to ¥13.1 billion ($113.2m; €94.3m; £63.9m) in July-September, down from a profit of ¥25.1bn a year earlier. Sales rose 4% to ¥2.36 trillion.
       For the full year to March, Hitachi cut its net profit forecast to ¥20bn from ¥55bn. The new target is down from a ¥51.5bn profit last year and sharply below the consensus of ¥45.22bn in a poll of 16 analysts by Reuters Estimates.

    Global (calendar Q3)
  • Kellogg
       Profits at Kellogg, the largest US cereal maker by revenue, jumped 11% on a surge in the sales of new cereal variants, such as fruit-and-yoghurt Special K.
       Net income rose to $274.3 million (€228.6m; £155m) from $247m last year, while sales rose 7% to $2.62 billion in the quarter. The group's results were also helped by a reduced tax rate.
       While Kellogg's cracker and healthy snack product group reported strong results in the quarter, the company failed to sell as many Pop-Tart toaster pastries and cookies. Also, its energy costs jumped in the second half of the year.
       Kellogg now expects earnings this year to fall between $2.32 and $2.34 per share, up from its previous forecast of $2.30 to $2.33 per share.
       The company is locked in a battle for market share with General Mills. It has in recent months managed to beat its arch rival by keeping prices low.

    Data sourced from Financial Times online; additional content by WARC staff