KLG (KLG.US) announced third-quarter net sales of $0.689 billion, higher than market expectations of $0.674 billion, amid strong demand for instant cereals. The stock is up more than 18% on the latest.

Sales in the quarter decreased by 1.1%, an improvement from 4.8% in the previous quarter; product pricing increased by 1.8%, down from 2.1% in the second quarter. Adjusted earnings per share were 31 cents, higher than the 26 cents the market expected. Gross profit margin increased from 28.5% to 29.4% in the same period last year.