(Corrects paragraph 6 to say net sales fell 2.9 percent to
$4.28 billion, not 2.8 percent to $4.41 billion)
June 25 General Mills Inc, maker of
Cheerios cereal and Betty Crocker baking products, reported a
quarterly profit that fell short of market estimates largely due
to higher commodity costs.
The company, whose shares fell 3 percent in premarket
trading, said it would launch new products, revamp existing ones
to revive sales and continue to cut costs.
General Mills said it has begun a review of its North
American manufacturing and distribution network to streamline
operations with the aim to save $40 million pretax for the year
ending May 2015.
Sales in the company's U.S. branded goods retail business,
the largest contributor to revenue, fell 1 percent to $2.4
The division, whose brands include Green Giant meals,
Progresso soup and Pillsbury frozen foods, has been hurt by
increased competition from cheaper store-branded foods in recent
The owner of Yoplait yoghurt said net sales fell 2.9 percent
to $4.28 billion. Analysts had expected sales of $4.42 billion.
The company said it expected 2015 net sales to grow at mid
single-digits and adjusted earnings per share to grow at high
Net income rose 10.4 percent to $404.6 million, or 65 cents
per share, in the fourth quarter, from $366.3 million, or 55
cents per share, a year earlier.
Excluding items, earnings were 67 cents per share, way below
the average analyst estimate of 72 cents, according to Thomson
One-time items include a 6 cent per share gain on the sale
of several grain elevators and a 9 cent per share charge
associated with the Venezuelan currency devaluation, the company
The Minneapolis, Minnesota-based company's shares closed at
$53.70 on Tuesday.
(Reporting by Shailaja Sharma in Bangalore; Editing by Sriraj