Higher Earnings Posted by Kellogg

Kellogg Co., the largest U.S. cereal maker, said second-quarter earnings climbed 16% as new products spurred sales.

Net income rose to $237.4 million, or 57 cents a share, from $203.9 million, or 50 cents, a year earlier, the Battle Creek, Mich., company said. Sales rose 6.2% to $2.39 billion.

Kellogg raised U.S. cereal prices an average of 4.5% two weeks ago to cover rising commodity costs and to pay for advertising new items, Chief Executive Carlos Gutierrez said.

Shares of Kellogg rose 52 cents to $40.75 on the New York Stock Exchange.