Battle Creek
Kellogg's U.S. breakfast profits shrink again
BATTLE CREEK, Mich. (AP) - Kellogg says its U.S. breakfast foods division saw another decline in quarterly sales but that trends in the cereal category were improving.
The maker of Frosted Flakes, Froot Loops and Kashi is trying to revamp the marketing for its cereals as Americans reach for other breakfast options, like Greek yogurt and fast food. One strategy has been trying to reposition Special K to be more in line with changing health trends, which Kellogg CEO John Bryant has said are moving away from weight loss and dieting.
Among the recent Special K cereal line extensions are gluten-free and protein varieties. Kellogg is also working on making its Kashi cereals without genetically modified organisms.
For the quarter, Kellogg Co. said sales in its flagship U.S. Morning Foods segment fell 2.3 percent when stripping out the impact of currency exchange rates and other one-time factors. Although he declined to provide a breakdown, Bryant said cereal sales were probably "down a little bit."
Paul Norman, president of Kellogg North America, noted that store scanner data shows cereal consumption trends are flat, however, and that Kellogg's biggest brands are in line with those trends. He said Kashi cereals had been losing distribution as stores stopped carrying certain varieties. But he said those distribution losses have stabilized and that he thinks distribution will eventually grow again.
Norman said the company expects U.S. cereal sales to be flat to up starting next year.
For the second quarter, Normal said a decline in breakfast drink sales contributed to the drop in the U.S. Morning Foods segment. Sales of Pop-Tarts were "flat to down," he said.
Kellogg's international division was hit by unfavorable exchange rates for the period. That also hurt its performance for the quarter, dragging total sales down by 5 percent to $3.5 billion. Analysts expected $3.47 billion, according to Zacks Investment Research.
Profit fell to $223 million, or 63 cents per share. The results included upfront costs associated with a cost-cutting program called Project K. Adjusted for non-recurring costs, earnings came to 92 cents per share. Analysts expected 91 cents per share, according to Zacks Investment Research.
Ann Arbor
U-M reopens medical library without books
ANN ARBOR, Mich. (AP) - The University of Michigan has reopened its Taubman Health Sciences Library after a $55 million overhaul and rethinking of how a library for medical students should function.
Hundreds of thousands of books were moved to an offsite location and are available on demand for delivery, and by becoming "bookless" the school said that frees up space for medical student education. The facility on the school's Ann Arbor campus officially reopened over the weekend.
"Today's library can be anywhere, thanks to technology, yet there is still a desire for a physical location that facilitates collaboration, study and learning," Jane Blumenthal, associate university librarian and Taubman Library director, said in a statement.
The books were moved about two years ago, before construction began. The library includes a realistic simulated clinic and medical students will work with those studying public health, dentistry, pharmacy, social work, nursing and kinesiology - much like they will in their future careers.
The library also features a virtual cadaver, a life-sized display that's manipulated using a touch screen to view different layers of the body, The Ann Arbor News reported. A scalpel tool can also be used to make incisions and even cut away portions of the body for inspection.
"This new space is truly designed by educators, and it shows in every detail," said Dr. Rajesh Mangrulkar, associate dean for medical student education.
The 35-year-old, 143,400-square-foot library will serve as the central learning hub for the university's nearly 780 medical students as well as provide lecture and advising space for the medical school's more than 1,100 graduate students and postdoctoral fellows in biomedical sciences.
Detroit
Effort to help cops, firefighters, military with PTSD
DETROIT (AP) - An effort at Wayne State University seeks to design and implement a treatment model for police officers, firefighters and military veterans who experience Posttraumatic Stress Disorder.
The Wayne State University Physician Group's Department of Psychiatry and Behavioral Neurosciences and Department of Family Medicine and Public Health Sciences launched the effort.
The initiative will incorporate short-term treatment options for severe PTSD symptoms as well as prevention and awareness programs to help first responders identify PTSD early in themselves and their colleagues.
To help kick off the effort, the Wayne State University Physician Group is hosting an Aug. 9 fundraiser before a concert featuring The Beach Boys and The Temptations.
Published: Wed, Aug 05, 2015
