Shares in cereal giant Kellogg have fallen 4% after it warned both its 2007 and 2008 profits were likely to miss Wall Street expectations.
Hit by soaring costs for wheat and other raw materials, it now expects to make 2007 earnings of between $2.72 (£1.30) and $2.75 a share.
This is below the average current market predictions of $2.77.
Kellogg gave the warning as it reported a 8.5% rise in profits for the three months to the end of September.
Cereals to pastries
The US firm made a net profit of $305m in the third quarter, compared with $281m a year earlier.
Its quarterly sales rose 6.4%, again compared with the same period last year, to $3bn.
For 2008, Kellogg expects to make a profit of $2.92 to $2.97 a share, below existing market expectations of $3.04.
In addition to famous cereal brands such as Corn Flakes and Special K, Kellogg makes Pop-Tarts pastries, Eggo frozen waffles, Keebler cookies, and Nutri-Grain cereal bars.
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