Minneapolis / MN. (gm) In conjunction with remarks at the Goldman Sachs Consumer Products Symposium, General Mills Inc. said it remains on track to achieve its sales and earnings targets for the fiscal year ending May 29, 2011. The company reaffirmed fiscal 2011 earnings per share guidance of 2,46 USD to 2,48 USD excluding mark-to-market effects and a net gain related to certain tax items. At the Symposium the Company also said higher prices are materializing for its cereals and other products on supermarket shelves, a sign the operating environment is improving. The company said the price increases will be needed to offset increasingly escalating costs. CFO Don Mulligan said that the Company expects costs to be up four to five percent long term, though with volatility. Next fiscal year, General Mills expects costs to be above that range.
General Mills: Reaffirms Fiscal 2011 Guidance
Minneapolis / MN. (gm) In conjunction with a presentation at the Morgan Stanley Global Retail and Consumer Conference in New York, General Mills Inc. said it remains on track to achieve its sales and earnings targets for the fiscal year ending May 2011. The company reaffirmed fiscal 2011 earnings per share guidance of 2,46 USD to 2,48 USD excluding mark-to-market effects and an expected net gain related to certain tax items.
General Mills said its overall business performance in the first half of 2011 (ends November 28, 2010) is tracking generally in line with – and not ahead of – strong year-ago levels. The company continues to expect that its sales and earnings growth will accelerate at a measured pace in the second half of the fiscal year.
Gross margin excluding mark-to-market effects is expected to be below year-ago levels in the second quarter and first half, but for the full 2011 fiscal year the company anticipates a gross margin comparable to the prior year´s strong level. General Mills´ reaffirmed its fiscal 2011 supply chain input cost inflation estimate of four to five percent. General Mills also announced plans to report results for its fiscal second quarter on Thursday, December 16, 2010.
