Tags: General | Mills | Profit | earnings

General Mills Quarterly Profit Beats Estimates on Higher Prices

Wednesday, 27 June 2012 10:02 AM

General Mills Inc., the Minneapolis-based food manufacturer, reported fourth-quarter profit that beat analysts’ estimates, helped by increased prices.

Net income in the quarter ended May 27 rose 1.6 percent to $325.4 million, or 49 cents a share, from $320.2 million, or 48 cents a share, a year earlier, General Mills said today in a statement. Excluding some items, profit totalled 60 cents a share. Analysts projected earnings of 59 cents a share, the average of 17 estimates compiled by Bloomberg.

General Mills, led by Chairman and Chief Executive Officer Ken Powell, has increased prices to cover higher inflation-based production costs. Sales rose 12 percent to $4.07 billion in the quarter, falling short of the $4.11 billion average of analysts’ estimates compiled by Bloomberg.

General Mills fell 0.7 percent to $38.15 yesterday in New York. The shares had dropped 5.6 percent this year before today.

General Mills announced in May that it agreed to buy Brazilian foodmaker Yoki Alimentos SA for about 1.75 billion reais, or $840 million, to boost snack sales in Brazil. The transaction will close during the first half of fiscal 2013. The deal, which will give General Mills nine brands and more than 600 items, also includes the assumption of about 200 million reais of outstanding debt.

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Wednesday, 27 June 2012 10:02 AM
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