UPDATE: General Mills FQ1 Results Miss Estimates, Shares Drop

Shares of General Mills

dropped more than 4% in pre-market trading after the company reported weaker-than-expected fiscal first-quarter results. The Minneapolis, Minnesota-based company posted quarterly earnings of $345.2 million, or $0.55 per share, versus $459.3 million, or $0.70 per share, in the year-ago period. Excluding non-recurring items, its adjusted earnings came in at $0.61 per share. Its sales dropped 2.4% to $4.27 billion. However, analysts were expecting earnings of $0.69 per share on revenue of $4.38 billion. Net sales for General Mills' US retail segment fell 5% to $2.44 billion in the quarter, while net sales for consolidated international businesses rose 2% to $1.35 billion. Its net sales for the Convenience Stores and Foodservice segment gained 1% to $473 million. The company introduced more than 250 new items worldwide during the quarter. General Mills Chairman and Chief Executive Officer Ken Powell said, "Back in June, we said our 2015 plans anticipated first-quarter EPS below year-ago levels. Our results were driven by sales and profit declines in the U.S., where industry trends were weak in the quarter. In addition, higher merchandising expense for our U.S. Retail businesses in this period depressed reported net sales and gross margin." General Mills reiterated its growth outlook for full-year fiscal 2015. General Mills shares fell 4.46% to $50.81 in pre-market trading.