General Mills Q3 Profit Tops Expectations

reported stronger-than-expected earnings for the fiscal third quarter on Wednesday. The Minneapolis, Minnesota-based company posted quarterly net earnings of $343.2 million, or $0.57 per share, compared to $410.6 million, or $0.66 per share, in the year-ago period. Excluding non-recurring items, the company's adjusted earnings climbed to $0.70 per share from $0.62 per share. Its sales fell 1% to $4.35 billion, while sales on a constant-currency basis rose 3%. However, analysts were expecting a profit of $0.67 per share on revenue of $4.35 billion. Net sales for U.S. retail segment rose 1% to $2.65 billion, while net sales for its consolidated international businesses slipped 7% to $1.23 billion. Net sales for the Convenience Stores and Foodservice segment climbed 6% to $465 million. During the first nine months of 2015, the company repurchased 22 million shares of common stock for an aggregate purchase price of $1.16 billion. General Mills Chairman and Chief Executive Officer Ken Powell said, "Our third-quarter results reflect strengthened operating performance. Our U.S. Retail segment posted net sales and profit growth including contributions from the Annie's business acquired in October 2014. Constant-currency net sales and profit growth accelerated for our International segment. And the Convenience Stores and Foodservice segment led our operating results, with sales up 6 percent and profit up 11 percent." For fiscal 2015, General Mills reiterated its guidance for adjusted EPS and sales growth in the low single-digit range. General Mills shares rose 1.92% to $53.05 in pre-market trading.