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Kellogg warns of earnings hit from workers’ strike -Breaking

by Mike Robinson

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© Reuters. FILEPHOTO: Kellogg’s Corn Flakes cereal in Pasadena (California) August 3, 2015 is shown at Ralphs supermarket. REUTERS/Mario Anzuoni/File Photo

(Reuters) – Kellogg (NYSE) Co. warned that its full-year earnings may be affected by a strike of workers at its cereal plants.

Due to labor and supply challenges, the company stated that its adjusted profit growth in full-year could be below 1% to 2.2%.

Kellogg announced Wednesday that its workers in the cereal plants had rejected the revised offer. The U.S.-based packaged food maker called it its “last best offer”. This extended the long and frustrating negotiations for a new contract.

Although analysts don’t anticipate major shortages in product, Kellogg has managed to recruit temporary workers and they are predicting a drop in its profits due to the strike.

Kellogg (NASDAQ:) has been dealing with higher freight expenses as well as rising costs for raw materials, just like Kraft Heinz (NASDAQ.:) and Conagra Brands(NYSE.:).

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