The Kellogg Company reported Thursday that higher costs and lower sales damped its fourth-quarter profit, but it said it had positioned itself for growth and raised its earnings expectations for the year.

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Kellogg said it earned $176 million, or 46 cents a share, in the quarter, down from $179 million, or 47 cents a share, a year earlier. Revenue fell 1 percent to $2.90 billion, from $2.93 billion.

The income fell short of the 49 cents expected by analysts surveyed by Thomson Reuters, and shares of Kellogg fell $2.78, or 5 percent, to $52.41.

Kellogg, which is based in Battle Creek, Mich cash till payday advance., said strong sales of its cereal and snacks, particularly in North America, helped offset other business that slowed in the down economy.

The chief executive, David Mackay said 2009 was difficult for the company, and tight consumer spending would continue to pose a challenge, particularly in North America and Europe, this year. But he said the company planned to make changes that would help it grow, including cutting costs, increasing advertising and developing new products.

Kellogg Raises Annual Forecast

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