General Mills hits target of 10 percent growth in earnings per share
Ann Merrill
Star Tribune
Thursday, June 28, 2001
Announcing its 2001 earnings Wednesday, General Mills Inc. made good on its pledge for double-digit earnings growth.
The Golden Valley-based maker of Cheerios, Yoplait yogurt and Betty Crocker brownies posted earnings per share of $2.20, a 10 percent increase. The earnings growth
climbs to 14 percent, or $2.28, when unusual items are included.
For the fourth quarter ended May 27, the company reported earnings per share of 50 cents, which met expectations of analysts surveyed by Thomson Financial/First
Call. The company's performance was enhanced by an after-tax gain of $24 million, or 8 cents a share, primarily from an insurance settlement related to a 1994
incident involving tainted oats. On the cost side, expenses related to the still-pending Pillsbury Co. acquisition accounted for a penny per share in the fourth quarter.
And costs tied to the company's decision to discontinue its Squeezit juice business accounted for 2 to 3 cents per share in the quarter.
In fiscal 2001, volume for the company's Big G cereal unit edged up 1 percent, convenience foods climbed 13 percent and yogurt jumped 16 percent. Snack volume
climbed 11 percent, and foodservice was up 9 percent.
Volume was flat for Betty Crocker baking, side dish and dinner mix products.
The company continues to expect to complete the purchase of Minneapolis-based Pillsbury in the first quarter, which ends in August.
General Mills is predicting that it will report double-digit growth in earnings per share in 2002, for the fifth year in a row.
General Mills shares closed Wednesday at $42.80, up 50 cents.
-- Ann Merrill is at amerrill@startribune.com .
General Mills Inc. |
