General Mills Shares Slide as Outlook Disappoints

Food company General Mills (GIS) declined almost 4% in premarket trading after the company's earnings outlook fell below estimates Tuesday.

The maker of popular cereal brands including Cheerios and Wheaties said that it expected full-year earnings to fall between $2.46 to $2.48 per share, lower than Thomson Reuters' expectations of $2.49.

Also Tuesday, the company reported that net sales dropped 2% to $3.6 billion in the fourth quarter of the fiscal year from a year earlier. The year-ago quarter had an extra week, General Mills said in a statement.

Earnings per share was 41 cents in the fourth quarter of 2010, down from 43 cents a year earlier.

In a statement, CEO Ken Powell said "This was an exceptional year for our company. We achieved broad-based sales growth and expanded gross margin, which allowed us to invest at above-planned levels in media support and selling capabilities. And our 16 percent EPS increase significantly exceeded the high single-digit rate we target in our long-term growth model."
Read Full Story
  • DJI28722.85187.050.66%
    NASDAQ9269.68130.371.43%
  • NIKKEI 22523215.71-127.80-0.55%
    Hang Seng27949.6440.540.15%
    DAX13323.69118.920.90%
  • USD (PER EUR)1.100.00010.01%
    USD (PER CHF)1.030.00010.01%
    JPY (PER USD)109.08-0.1480-0.14%
    GBP (PER USD)1.30-0.0002-0.02%