Kellogg raises forecast after review

Kellogg, the world’s largest cereal company, has raised its annual earnings forecast after its cost-cutting programme helped make up for a slumping breakfast business.

Profit will be $4.11 to $4.18 a share this year when removing the effects of currency, the company said in a statement yesterday. It had previously projected $4 to $4.07 a share.

Kellogg’s move to embrace zero-based budgeting — an increasingly popular form of cost cutting in the food industry — is boosting its margins.