(Reuters) – Kellogg Co warned on Thursday its full-year earnings could take a hit due to an ongoing workers’ strike at its cereal plants.
The company said its full-year adjusted profit growth could be at the low end of its range of 1% to 2% due to current supply and labor challenges.
Kellogg said on Wednesday its cereal plant workers union had rejected its revised offer, which the U.S. packaged foods maker called its “last best final offer,” prolonging the months-long negotiations over a new contract.
Some analysts say they do not expect major product shortages in the near term as Kellogg has been able to bring in temporary hires, but they have warned of a hit to its profit margins due to the strike.
Kellogg, like its peers Kraft Heinz and Conagra Brands, has also been wrestling with rising freight expenses and higher costs of raw materials.
(Reporting by Deborah Sophia in Bengaluru; Editing by Maju Samuel)
