Minneapolis / MN. (gm) General Mills Inc. said that strong fourth-quarter sales will lead fiscal 2008 results to exceed targeted levels. In the final quarter ended May 25, 2008, net sales grew 13 percent. As a result, fiscal 2008 sales are expected to increase ten percent to 13,7 billion USD. Segment operating profits are expected to grow at a mid single-digit rate for the full year, despite higher input costs and a double-digit increase in consumer marketing expense.
The company now expects fiscal 2008 diluted earnings per share (EPS) to be approximately 3,71 USD. This includes an estimated 0,19 USD per share of non-cash net gains from mark-to-market valuation of certain commodity positions and a favorable ruling related to a tax contingency. Excluding these non-cash gains, earnings per share would be approximately 3,52 USD, up eleven percent from reported earnings of 3,18 USD per share a year ago.
The company had been targeting earnings excluding these non-cash items of 3,45 USD to 3,47 USD per share, and had estimated reported earnings of 3,75 USD to 3,77 USD per share.
Fourth-quarter diluted EPS are expected to be 0,53 USD. This includes an expected reduction of the mark-to-market valuation of certain commodity positions from a net gain of 168 million USD at the end of the third quarter to a net gain of 57 million USD at the end of the fiscal year, primarily due to declines in key commodity market prices from the prevailing levels recognized last quarter. Excluding this 111 million USD pre-tax mark-to-market reduction, diluted EPS are expected to be 0,73 USD, up 18 percent from 0,62 USD per share reported for the fourth quarter a year ago (source).
