Processing Magazine

Recall Hit Kellogg''s Second Quarter Profit

July 29, 2010
Fallout from a massive cereal recall helped drag down Kellogg Co''s second-quarter net income 15 percent and led the cereal maker to cut its full-year outlook, according to the Associated Press. The food maker reported Thursday that it earned $302 million, or 79 cents per share for the quarter. That''s down from $354 million, or 92 cents per share. Last month the company recalled 28 million boxes of Apple Jacks, Corn Pops, Froot Loops and Honey Smacks cereal after about 20 people complained that the boxes had an unusual smell and flavor, which the company blamed on a chemical in the boxes'' liners. The company, based in Battle Creek, Mich., said it has identified elevated levels of chemicals called hydrocarbons as the source. Those chemicals include methyl naphthalene. Kellogg said those chemicals are normally found at lower concentrations in the wax and film used for food packaging. The company said the wax used in its liners is commonly used as a protective coating for foods including cheese, raw fruits and vegetables.