General Mills: reports strong growth in Q2/2009

Minneapolis / MN. (gm) General Mills Inc. reported results for the second quarter of fiscal 2009. Net sales for the 13 weeks ended November 23, 2008, increased eight percent to 4,01 billion USD. Segment operating profits grew nine percent to 782 million USD despite higher input costs and a 21 percent increase in consumer marketing investment. Net earnings totaled 378 million USD after a net reduction related to mark-to-market valuation of certain commodity positions and a net gain from the sale of the Pop Secret microwave popcorn business. Diluted earnings per share (EPS) totaled 1,09 USD including a 0,49 USD net reduction related to mark-to-market valuation and a 0,22 USD gain from the sale of Pop Secret. Last year´s second quarter earnings of 1,14 USD per share included a 0,03 USD increase from mark-to-market valuation of certain commodity positions. Excluding the Pop Secret gain in 2009 and the mark-to-market impacts in both years, earnings per share for the second quarter of 2009 would have totaled 1,36 USD; up from 1,11 USD in the period last year.

Chairman and Chief Executive Officer Ken Powell: «We´re continuing to see strong consumer demand for our products in markets around the world. Our segment operating profit margin held steady despite higher input costs and the strong double-digit increase in consumer marketing to support our brands. Performance through the first half of 2009 has us solidly on track to deliver strong sales and earnings growth for the year».

Through the first six months of 2009, General Mills´ net sales grew eleven percent to 7,51 billion USD. Segment operating profits increased nine percent to 1,41 billion USD. Six-month net earnings totaled 657 million USD after a net reduction related to mark-to-market valuation of certain commodity positions and the net gain from the Pop Secret sale. Diluted earnings per share totaled 1,88 USD including a 0,65 USD net reduction related to mark-to-market valuation and a 0,21 USD gain from the Pop Secret sale. Last year´s six-month earnings per share of 1,95 USD included a 0,03 USD increase related to mark-to-market valuation of certain commodity positions. Excluding the Pop Secret gain in 2009 and mark-to-market valuation impacts from both years, six month earnings per share would have been 2,32 USD in 2009, up 21 percent from 1,92 USD in last year´s first half (complete press release).

bakenet:eu