General Mills, Inc. To Eliminate Approximately 850 Positions; Sees Q4 2012, FY 2013 Charge Guidance; Reaffirms FY 2012 EPS Guidance

General Mills, Inc. announced a productivity and cost savings plan designed to improve organizational effectiveness and focus on key growth strategies. The plan includes organizational changes that strengthen business alignment, and actions to accelerate administrative efficiencies across the Company. In connection with this initiative, the Company expects to eliminate approximately 850 positions globally. Plans also include asset-related costs of approximately $13 million pre-tax associated with the write-down of selected production equipment. The Company will record total restructuring charges of approximately $109 million pre-tax, reflecting one-time employee separation expenses and the asset-related costs. Approximately $94 million of these restructuring costs will be recorded in the fourth quarter of 2012. The remaining costs will be recorded in fiscal 2013. The Company continues to target fiscal 2012 adjusted diluted earnings per share (EPS) of $2.53 to $2.55 per share. This guidance excludes the fourth quarter restructuring charge, mark-to-market valuation effects, and Yoplait integration costs.