Tags: General Mills | profit | earnings | cereal

General Mills' Profit Meets Street View but Lowers Outlook

Wednesday, 26 Jun 2013 08:37 AM

General Mills Inc. reported fourth-quarter earnings on Wednesday that met Wall Street expectations but it gave a forecast for the new fiscal year that was below them, as it sees higher costs for ingredients.

The maker of Cheerios cereal, Progresso soup and other packaged foods said net income was $366.3 million, or 55 cents per share, in the fiscal fourth quarter that ended on May 26, up from $325.4 million, or 49 cents per share, a year earlier.

Excluding one-time items such as tax and accounting adjustments, earnings were 53 cents per share, meeting analysts' average estimates, according to Thomson Reuters I/B/E/S.

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Net sales rose 8.5 percent to $4.41 billion. Analysts expected $4.32 billion. Growth was fueled by the addition of new products gained through the acquisitions of Yoki Alimentos in Brazil and Yoplait International.

Sales in the U.S. retail segment rose 2 percent, although profits declined due to higher ingredient and merchandising costs. The international division's sales rose 27 percent, as the addition of new business more than offset the impact of lower selling prices and foreign exchange fluctuations.

For fiscal 2014, General Mills forecast earnings of $2.87 to $2.90 per share. Analysts were expecting $2.93 per share, according to Thomson Reuters I/B/E/S. The company also forecast sales would grow at a low single-digit rate and exceed $18 billion.

It said cost management efforts are expected to offset higher prices for ingredients, which it sees rising 3 percent.

General Mills' shares slipped 2 cents to $48.33 in premarket trading.

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© 2017 Thomson/Reuters. All rights reserved.

 
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General Mills Inc reported fourth-quarter earnings on Wednesday that met Wall Street expectations but it gave a forecast for the new fiscal year that was below them, as it sees higher costs for ingredients.
General Mills,profit,earnings,cereal
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2013-37-26
Wednesday, 26 Jun 2013 08:37 AM
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