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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): December 2, 1998
KELLOGG COMPANY
(Exact name of registrant as specified in its charter)
Commission File No.: 1-4171
State of Incorporation: Delaware IRS Employee Indentification No.: 38-0710690
One Kellogg Square
Battle Creek, MI 49016-3599
(Address of primary executive offices, including ZIP Code)
Registrant's telephone number, including area code: (616) 961-2000
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Item 5: Other Events
The Company issued a press release today in the form attached as Exhibit 99.01.
SPECIAL NOTE REGARDING FORWARD LOOKING STATEMENTS
Certain statements contained in the Company's press release constitute
"forward looking statements" under the Private Securities Litigation Reform Act.
Projections related to expense reductions and savings forecasts, earnings and
profitability, and the Companies restructuring efforts involve certain risks
and uncertainties. Actual results may differ materially due to factors such as
the impact of competitive conditions; changes in the levels of spending on
system initiatives and business opportunities; other streamlining initiatives;
changes in statutory tax law or generally accepted accounting practices; and
other items.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
KELLOGG COMPANY
By: /s/ Alan Taylor
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Vice President-Corporate Controller
Date: December 2, 1998
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INDEX TO EXHIBITS
EXHIBIT NO. DESCRIPTION
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99.01 Press Release
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EXHIBIT 99.01
[KELLOGG'S LETTERHEAD]
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KELLOGG COMPLETES WORK ACTIVITIES ANALYSIS,
EXPECTS ANNUAL SAVINGS OF $105 MILLION
BATTLE CREEK, MI -- Kellogg Company today announced that its work activity
analysis has resulted in the elimination of approximately 525 salaried
positions and 240 contracted positions at its headquarters and North American
operations. Associated with these reductions will be an estimated savings of
$105 million in annual expense beginning in 1999.
"Over the past three months we have been engaged in aligning our work
activities to our growth strategy," said Arnold G. Langbo, chairman of the
board and chief executive officer of Kellogg Company. "Our strategy is
centered on increasing growth in our ready-to-eat cereal business, accelerating
the expansion of our convenience foods, and continuously improving the
cost-efficiency of our operations worldwide. This alignment is the foundation
for building a more focused, results-oriented organization.
"We regret the adverse impact on employees leaving the company," Langbo
said. "To assist each person in moving forward, the company is providing
generous severance pay and benefits as well as career transition assistance."
As a result of this initiative, the company expects to record a
non-recurring pre-tax charge to earnings of approximately $70 million ($45
million after tax, or $.11 per share) for the quarter ending December 31,
1998. Kellogg plans to report quarterly and full-year 1998 results on January
29, 1999.
Kellogg Company is the world's leading producer of ready-to-eat cereal and
a leading producer of other grain-based convenience foods, including toaster
pastries, cereal bars, bagels, and frozen waffles.
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