General Mills products are popular here in Syracuse. Cheerios and Valley snack bars along with other General Mills products are top sellers at the local supermarkets such as PriceChopper, http://bit.ly/anoqdI , and Wegmans, http://bit.ly/62xKm.
And so Syracuse consumers and investors alike have been interested in a recent report about good profits for
General Mills. Matt Andrejczak has reported for The Wall Street Journal MarketWatch “General Mills profit up 18% on international growth”,http://bit.ly/frSsFo.
General Mills has reported its quarterly profit rose 18% from a year-ago as strong international sales offset slowed down growth in the U.S., where the firm has raised prices due to increased costs for corn, oats and other agricultural commodities. General Mills (GIS ), has affirmed its fiscal year profit outlook, saying that increased prices will contribute to strong fiscal fourth quarter earnings.
The firm however has warned input costs will go up in its fiscal 2012 year which starts in June, which will keep a lid on gross profit margin growth. Commodity costs are expected to rise 4% to 5% this fiscal year. For its fiscal third quarter which ended on February 27, General Mills reported net income of $392.1 million, or 59 cents a share, which was up from $332.5 million, or 48 cents a share, in the year-ago period. Sales for General Mills rose 2% to $3.65 billion. General Mills said it earned 56 cents a share in the most recent period on an adjusted basis.
Analysts who were surveyed by FactSet Research has forecasted earnings of 56 cents a share, on average, with sales of $3.7 billion. There was a fall of 1% to $2.51 billion in U.S. retail sales, which accounts for the company’s biggest revenue. Overall the amount of food sold matched levels from a year ago. Nature Valley and Fiber One snack bars increased snack unit sales by 14%. And during the quarter Progresso soup sales rose 5% and Pillsbury dough was up 4%.
There was a decline of 6% in the quarter for Big G cereal sales, which includes Cheerios and Lucky Charms. A year ago in the same period there was a rise of 5% when General Mills launched Chocolate Cheerios and Wheaties Fuel. But, international sales grew 8% to $688 million. However, General Mills said Haagen-Dazs sales will suffer in Japan in the aftermath of the devastating earthquake and tsunami. Sales for Haagen-Dazs in Japan dropped 4% in the quarter, excluding currency exchange movements.
There is enthusiasm for General Mills and its tasty and nutritious products here in Syracuse. General Mills anticipates earnings of $2.46 to $2.48 a share with analysts forecasting $2.48 a share.
Mandel News Service: http://www.mandelnews.com