General Mills 4th-quarter profit almost doubles
MILWAUKEE — General Mills Inc. said Wednesday that its fiscal fourth-quarter profit almost doubled as consumers stuck with its well-known brands such as Cheerios cereal and Yoplait yogurt.
Adjusted earnings per share beat Wall Street estimates, although sales came in slightly short. The company also offered earnings guidance for 2010 above analysts’ expectations.
Consumers have been pulling back on their spending at restaurants during the recession and heading to grocery stores. That trend is helping sales for Golden Valley, Minn.-based General Mills, though many consumers also are switching to less expensive in-house brands once they get to the store.
To keep wooing shoppers, the food maker has been pushing new versions of its products — like banana nut Cheerios — and boosting marketing. General Mills increased its spending on marketing 19 percent in the fourth quarter, and that momentum will continue in fiscal 2010, said Ian Friendly, chief operating officer for U.S. retail.
“Consumers are back in the stores, and products across our portfolio deliver what they need, taste, convenience, nutrition and value,” he told investors on a conference call. “So we think this is a great time to talk about our brands and introduce some items.”
The company plans to bring out Progresso soups with high fiber, gluten-free Betty Crocker dessert mixes and new versions of Yoplait yogurt including smoothies this fiscal year, among other new items.
For the three months that ended May 31, General Mills earned $358.8 million, or $1.07 per share, up from $185.2 million, or 53 cents per share, a year earlier.
Excluding restructuring charges, a loss on some product lines that were sold and other one-time items, it earned 86 cents per share.
Analysts surveyed by Thomson Reuters, who generally exclude one-time items, forecast earnings of 81 cents per share.
Shares rose $1.25 on the news, or more than 2 percent, to $57.27 in morning trading Wednesday.
Quarterly sales rose 5 percent to $3.65 billion from $3.47 billion, helped by an extra week in the period. Still, sales fell short of Wall Street’s estimate of $3.69 billion.
The company’s U.S. retail division, which sells to stores, posted a sales rise of more than 11 percent in the quarter to finish at $2.5 billion, including the extra week. Yoplait, Big G cereals and Pillsbury USA were among the product lines posting double-digit sales increases.
Overseas, sales dropped 5 percent due to the stronger dollar, which cut results 17 percent. As the U.S. dollar gains strength, that weighs on international sales once they are converted back to U.S. dollars.
The company’s bakeries and foodservice segment, which sells to outlets like hotels and restaurants, continued to hurt as consumers held back on eating out, with sales down 9 percent for the quarter.
Annual net income edged up to $1.3 billion, or $3.80 per share, from $1.29 billion, or $3.71 per share, in fiscal 2008. Annual sales climbed 8 percent to $14.69 billion from $13.65 billion.
The company says its fiscal 2010 earnings will be in a range of $4.20 to $4.25 per share, which is above the $4.18-per-share estimate of analysts polled. The company said its expectations assume that foreign currency translation will still be an issue.
The company did not offer a quarterly outlook.
AP Business Writer Michelle Chapman contributed to this report from New York.
Related News
General Mills 1st-qtr profit rises on solid demand, lower costs; co. raises full-year outlookSeptember 23rd, 2009 General Mills 1Q profit jumps as costs fallPORTLAND, Ore. — General Mills Inc., the maker of Cheerios and Yoplait yogurt, said Wednesday that its fiscal first-quarter profit surged 51 percent as ingredient costs fell and demand for its products remained strong.
General Mills first-quarter financial performance at a glanceSeptember 23rd, 2009 General Mills 1Q Results at a GlanceHOW THEY DID: Minneapolis-based General Mills Inc. earned $420.6 million, or $1.25 per share, for the quarter that ended Aug.
Ford, General Mills, Calpine, Cemex, US Airways are among big market movers WednesdaySeptember 23rd, 2009 Ford, General Mills, Calpine are among big moversNEW YORK — The following stocks were among those that moved substantially or traded heavily Wednesday on the New York Stock Exchange and Nasdaq Stock Market:
NYSE:
Ford Motor Co., up 35 cents at $7.36
The automaker is targeting the fast-growing Asian market, boosting production in the region, and will make a low-cost small car in India. General Mills Inc., up $2.83 at $63.80
Cheaper ingredients and strong demand for the food maker's products grew first quarter profit, and it raised its outlook for the year.
General Mills 1st-quarter profit rises on strong demand; food maker raises full-year outlookSeptember 23rd, 2009 General Mills 1Q profit jumps on strong demandPORTLAND, Ore. — General Mills Inc., the maker of Cheerios and Yoplait yogurt, said Wednesday that its fiscal first-quarter profit surged 51 percent on lower ingredient costs and strong demand for its products.
Analyst sees Limited beating expectations in 2Q, but doesn't see recovery until later in yearAugust 19th, 2009 Analyst sees Limited Brands recovery in 4QNEW YORK — Specialty retailer Limited Brands Inc. reports fiscal second-quarter results after the market closes Wednesday, but one analyst said she doesn't expect markedly improved results until the fourth quarter.
Kia Motors says 2nd quarter net profit soars amid higher salesAugust 12th, 2009 Kia Motors says 2nd quarter profit soarsSEOUL, South Korea — Kia Motors Corp., South Korea's second-largest automaker, said Wednesday that second-quarter net profit quadrupled amid higher sales as the company benefited from weakness in the local currency. Kia Motors earned 347.1 billion won (US$279 million) in the three months ending June 30, the company said in a regulatory filing.
Abaxis Inc. sees profit soar in second-quarterJuly 30th, 2009 Abaxis profit soars in Q2UNION CITY, Calif. — Abaxis Inc.
LG Electronics says 2nd-quarter net profit soars 62 percent to record highJuly 22nd, 2009 LG Electronics says Q2 profit soars to recordSEOUL, South Korea — LG Electronics said Wednesday that second-quarter net profit soared 62 percent to an all-time high amid record sales of flat screen televisions and mobile phones. LG Electronics Inc., the world's third-largest manufacturer of mobile phones and flat screen TVs, earned 1.15 trillion won ($921 million) in the three months ended June 30, it said in a regulatory filing and a press release.
Radico Khaitan to launch whisky, brandy brandsJuly 21st, 2009 NEW DELHI - Liquor manufacturer Radico Khaitan, which Tuesday reported a 56 percent jump in its net profit for the quarter ended June 30, is planning to launch two brands in the brown spirits category. "We are looking to launch a whisky and a brandy brand, and both will be in the premium segment," Radico Khaitan's chairman and managing director Lalit Khaitan told IANS.
General Mills expects 2010 profit to rise, ingredient costs to moderate in fiscal 2010July 1st, 2009 General Mills: 2010 profit to rise, costs to slowMILWAUKEE — General Mills Inc. reported Wednesday that its fiscal fourth-quarter profit beat estimates as sales of top brands like Cheerios rose while consumers continued eating at home.
Kroger's 1Q profit soars 12.7 percent as consumers tighten budgets by buying meals at groceryJune 23rd, 2009 Kroger's 1Q profit soars 12.7 as more eat at homeCINCINNATI — Grocery operator Kroger Co. says first-quarter profit shot up 12.7 percent, as recession-hit households continue to eat at home more and seek food bargains.
J.M. Smucker 4Q profit more than doubles, beats view as Folgers continues to boost resultsJune 18th, 2009 J.M. Smucker 4Q profit soars, tops viewNEW YORK — J.M. Smucker Co. said Thursday its fiscal fourth-quarter profit more than doubled, helped by consumers' desire to eat at home and the company's acquisition of the Folgers coffee brand last year.
MillerCoors 1st-quarter profit climbs, brand sales helped by increased pricingMay 5th, 2009 MillerCoors 1Q profit rises on better pricingDENVER — Molson Coors Brewing and SABMiller say first-quarter profit for their U.S. joint venture MillerCoors rose 51 percent as sales of Coors Light, Miller Lite and other brands were helped by higher prices and fewer promotions.
Yum Brands, operator of Taco Bell, KFC, says 1Q profit falls 14 percent on slump in US salesApril 22nd, 2009 Yum Brands 1Q profit down 14 pct, US sales slumpLOUISVILLE, Ky. — Restaurant operator Yum Brands Inc.
Yum Brands says 1Q profit falls 14 percent mainly on stronger dollarApril 22nd, 2009 Yum Brands 1Q profit down 14 pctLOUISVILLE, Ky. — Restaurant operator Yum Brands Inc.
Loading ...