AP NEWS

General Mills’ fourth quarter profit beats estimates

June 27, 2018 GMT

General Mills reported Wednesday fiscal fourth quarter net earnings of $354.4 million, down 13 percent from a year ago.

This translates into 59 cents per share for the quarter ending May 27. Earnings, when adjusted for one-time expenses, were 79 cents per share, beating Wall Streets expectations by six cents.

The maker of Progresso soups, Pillsbury dough and Cheerios posted net sales of $3.89 billion, up 2 percent from a year ago.

Fiscal 2018 represented an important first step in returning our business to sustainable top line growth, said General Mills Chairman and Chief Executive Jeff Harmening, in a release. We made significant progress toward competing more effectively this year, with strong innovation, marketing, and in-store execution driving positive organic sales growth in each of our last three quarters.

The Golden Valley-based food manufacturer also reported a full-year profit of $2.13 billion, or $3.64 per share, a 31 percent increase from last year.

Investors are eager to question the companys leadership on its recent acquisition of pet food maker Blue Buffalo Pet Foods Co. during its earnings call this morning. In her earnings preview, Alexia Howard, an analyst with Bernstein Research, questioned whether the two businesses were similar enough to justify the premium price tag General Mills paid for Blue Buffalo.

Kristen Leigh Painter 612-673-4767