Kellogg,a US-based cereal maker,has reported that its net income for the second quarter ended 30 June 2012 decreased by 10.6%to$301m,compared to$343m for the same period in 2011.

The company posted 2.6%increase in net sales to$3.47bn,compared to$3.38bn for the same period in 2011.Operating profit decreased by 5%to$485m,compared to$543m in 2011.

Kellogg said that higher commodity costs,the timing of investment in supply chain,and expected weak results in European market have impact on operating profit.

The below-the-line benefit,which is due to lower tax rate and gain from foreign exchange,was partially offset by the impact of interest-rate swaps that are also linked to Pringles acquisition,it added.

Kellogg president and chief executive officer John Bryant said that the company has made a top-line performance during the period and the strategic taken have also enabled it to achieve these results.

"Last year we outlined a plan that focused the company on driving our two core growth platforms:cereal and snacks.The acquisition of the Pringles business takes us a long way toward achieving our goals and provides us with significant potential for future growth,"Bryant said.

Kellogg brands include Cheez-It,Coco Pops,Corn Flakes,Eggo,Frosted Flakes,Kashi,Keebler,Kellogg's,Mini-Wheats,Pop-Tarts,Pringles,Rice Krispies,Special K.