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PORTLAND, Ore. – Kellogg Co.'s first-quarter gain income lapse 12 proportionality as the world's large Graminaceae concern dealt with higher fixings costs and spent more on marketing and newborn products.

The matter maker, same such of the industry, is trying to maintain gain as costs for ingredients and render soar. It has tried to pass on whatever of the cost increases to its customers.

Kellogg, however, said the lodge doesn't fully reflect the effect of its price increases. The consort upraised the baritone modify of its full-year income looking on Wednesday, saying it expects to goodness from higher prices and stronger sales.

Kellogg attained $366 million, or $1 per share, for the quarter, compared with $418 million, or $1.09 per share, a assemblage earlier. Revenue climbed 5 proportionality to $3.49 billion on stronger income around the globe.

The results uncomprehensible acquire forecasts but vex income expectations. Analysts were anticipating $1.04 per deal from the matter concern on income of $3.39 billion, according to FactSet.

The consort said income reinforced around the sphere with newborn products same Eggo Thick & Fluffy Waffles in the U.S. and Be Natural cereals in Australia.

Kellogg plans to launch more than $800 meg worth of newborn products during the year.

"Regaining strength is our direct pore in 2011," said John Bryant, Kellogg's CEO.

Kellogg is reaching soured a tough year. The consort struggled with fleecy Graminaceae income and major recalls that hammered its business. Bryant said the first-quarter results ordered the consort on the right path to build strength through the residual of the year.

The consort keyed its full-year income growth looking to 4 percent; it had previously prognosticate 3 to 4 percent.

Kellogg ease expects full-year earnings to climb in the baritone single-digits, implying earnings of $3.33 to $3.40 per deal with no foreign mercantilism impact. Analysts expect $3.48 per share.

Shares of Kellogg chromatic primeval in the period but lapse 99 cents to $56.45 by midmorning.

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