BATTLE CREEK, Mich., Feb. 11, 2016 /PRNewswire/ -- Kellogg Company today announced that fourth quarter 2015 reported net sales were $3.1 billion, a decrease of 10.6 percent from the fourth quarter of 2014. Fourth quarter currency-neutral comparable net sales* increased by 4.2 percent. Full-year 2015 reported net sales decreased by 7.2 percent to $13.5 billion. Full-year currency-neutral comparable net sales increased by 1.2 percent. Currency-neutral comparable net sales results include the impact of pricing in Venezuela.
The reported quarterly operating loss was $39 million; this included a significant mark-to-market adjustment of $393 million, which was primarily driven by the impact of asset returns on pension plans; the company's pension plans remain almost 90 percent funded. Currency-neutral comparable operating profit* increased by 2.8 percent in the fourth quarter. Full-year reported operating profit increased by 6.6 percent. Full-year currency-neutral comparable operating profit decreased by 2.3 percent; this included a negative impact of 3 percent from the rebasing of incentive compensation.
The reported fourth quarter 2015 net loss was $41 million, or a loss of $0.12 per share; comparable earnings* were $0.79 per share; this represented a decrease of 6.0 percent from the fourth quarter of 2014's comparable earnings per share. The translation of foreign currency lowered quarterly comparable earnings by $0.06 per share in the fourth quarter. Reported full-year 2015 net earnings were $614 million, or $1.72 per share; comparable full-year earnings were $3.53 per share, a decrease of 7.3 percent from 2014's comparable earnings per share. The translation of foreign currency lowered comparable earnings by $0.28 per share for the full year; as a result, full-year currency-neutral comparable earnings were $3.81 per share, in-line with the prior year's result. Please see the table below and the appendices to this press release for detail regarding items that affect comparability.
"Our results in 2015 met or exceeded our initial expectations. We saw good growth in many of our businesses, and importantly, trends continued to improve in the U.S. Cereal business," said John Bryant, Chairman and CEO. "We're very pleased with the foundation that we've built. We are committed to achieving our long-term goals for growth in 2016, supported by our increasing momentum and unprecedented productivity programs."
North America
Kellogg North America's reported net sales decreased by 8.0 percent in the fourth quarter and decreased by 4.3 percent for the full year. Currency-neutral comparable net sales declined by 0.4 percent for the fourth quarter and by 1.6 percent for the full year. The U.S. Morning Foods segment posted an increase in comparable net sales of 1.5 percent in the fourth quarter and a decrease of 1.6 percent for the full year. The performance in the fourth quarter was the result of improving trends in the U.S. Cereal business. U.S. Snacks posted a decline in comparable net sales of 1.9 percent in the fourth quarter and a decline of 1.6 percent for the full year. However, consumption improved sequentially in each of the categories in the segment. The U.S. Specialty Channels business posted an increase in comparable net sales of 1.5 percent in the fourth quarter and an increase of 0.7 percent for the full year. The North America Other business posted a decline in currency-neutral comparable net sales of 2.0 percent in the fourth quarter and a decline of 3.2 percent for the full year. This was driven by a decline in trade inventory due to a shift to new packaging in the MorningStar Farms business and results from the Kashi business; Kashi's performance improved over the course of the year. Full report.
