Printer Friendly

GENERAL MILLS EPS UP 12 PERCENT IN F93 SECOND QUARTER/FIRST HALF

 MINNEAPOLIS, Dec. 16 /PRNewswire/ -- General Mills (NYSE: GIS) today reported earnings per share increases of 12 percent for both the second quarter and first half of fiscal 1993. For the 13-week period ended November 29, the company earned 85 cents per share, up from the 76 cents earned in last year's quarter before the one-cent net gain on the sale of the PYCASA frozen prepared meals business in Spain and miscellaneous restructuring charges. Cumulative first-half earnings per share of $1.82 are up from the $1.62 earned a year ago, excluding the one-cent gain.
 Sales of $2.1 billion in the second quarter and $4.1 billion for the first half each represents a gain of 5 percent. Excluding revenues of PYCASA and the European snack food operations which became part of the Snack Ventures Europe joint venture with PepsiCo Foods International on July 11, 1992, sales increased 10 percent in the second quarter and 9 percent cumulatively. This is well above the growth rates for the markets in which the company operates.
 Chairman Bruce Atwater said General Mills' record results reflect continued excellent profit gains by Consumer Foods, led by strong gains by Big G cereals and Betty Crocker Products in each of the first two quarters, as well as excellent expense control throughout the company. Restaurants reported a 3 percent decline in operating profits in the second quarter, and first half profit growth of 8 percent. Atwater said he expects fiscal 1993 to be another year of record sales, earnings and earnings per share.
 Consumer Foods reported gains in sales of 11 percent for both the second quarter and first half, excluding revenues of PYCASA and European snack foods. Operating profits grew 12 percent in the second quarter and 11 percent cumulatively, excluding unusual items. The key factor to overall growth was domestic package food volume, which increased 6 percent both for the second quarter and cumulatively. Betty Crocker unit volume was up 10 percent in the second quarter and 7 percent cumulatively, led by strong gains by new dessert, main meal and snack products. Big G cereals unit volume grew more than 5 percent for the quarter and 6 percent cumulatively, led by established Cheerios brands and strong performance by new line extensions of some of the company's oldest established brands -- Multi Grain Cheerios, Wheaties Honey Gold and Berry Berry Kix. The company's dollar share of the $8.1 billion retail ready-to-eat cereal market was 29.4 percent for the past 52 weeks, up .5 points from the comparable period last year. International Foods, Foodservice, Yoplait and Gorton's also made excellent contributions to earnings growth.
 Consumer Foods' profit results included significant planned expense related to building major new businesses. This included an increase of $5 million pretax over the prior year, $3 million in the second quarter, for the Cereal Partners Worldwide joint cereal venture with Nestle, which entered the Mexican market during the quarter. These expenses reduced the second quarter and first-half profit growth rate by more than one percent. CPW unit volume grew 30 percent in the last six months as compared to the prior year.
 Restaurant sales grew 7 percent in the second quarter and 6 percent cumulatively.
 The Olive Garden's second quarter performance was comparable to the first quarter's results: a 19 percent gain in sales and even faster growth in operating profits in the United States, despite average unit sales slightly below the prior year. The Olive Garden's Canadian operations show results comparable to the prior year. The Olive Garden expanded by 25 units in the first half, bringing total units in North America to 366.
 Red Lobster USA's profits were down in the second quarter but cumulatively they remain ahead of the prior year. As expected, Red Lobster's second quarter sales/margin mix was not as favorable as in the prior year when the popular Lobsterfest promotion ran in the first half of the second quarter. However, overall sales and customer traffic gradually improved as the quarter progressed on the strength of two advertised value promotions: a $10.99 Lobster and Shrimp plate and a $9.99 Shrimp Trios offer. As a result, overall sales resumed growth and average unit sales were down about one-half the decline rate experienced in the first quarter. November same store customer traffic was up from the prior year. The third quarter is starting with good gains in both average unit sales and customer traffic from the Lobsterfest promotion. Red Lobster has added 19 new units during the first half and now has 638 units open in North America.
 General Mills average shares outstanding were 2.0 million, or one percent less, than in last year's second quarter. This reflects the company's repurchase of 2.6 million shares during the first half less shares issued under stock option and other incentive programs. Borrowings required to fund the share repurchases were an important factor in the $5 million increase in net interest expense in the second quarter.
 GENERAL MILLS
 EARNINGS HIGHLIGHTS
 (Amounts in Millions, Except per Share Data)
 13 Weeks Ended 26 Weeks Ended
 11/29/92 11/24/91 11/29/92 11/24/91
 Sales (a) $2,096.9 $1,992.5 $4,116.5 $3,909.0
 Net Earnings (b) 138.1 128.3 297.7 270.4
 EPS (b) .85 .77 1.82 1.63
 Avg. Shares Outstanding 163.6 165.6 163.7 165.5
 OPERATING RESULTS BY SEGMENT
 Pct. Change
 From
 Prior Year
 Second Quarter Six Months 2nd 6
 Sales 11/29/92 11/24/91 11/29/92 11/24/91 Qtr Mos
 Consumer
 Foods (a) $1,473.8 $1,412.5 $2,816.4 $2,685.7 4 5
 Restaurants 623.1 580.0 1,300.1 1,223.3 7 6
 Total Sales $2,096.9 $1,992.5 $4,116.5 $3,909.0 5 5
 Operating Profit
 Consumer
 Foods (b) $226.0 $221.0 $456.0 $431.3 2 6
 Restaurants 26.2 27.0 80.7 74.4 (3) 8
 Total Operating
 Profit 252.2 248.0 536.7 505.7 2 6
 Corporate Expenses,
 including Interest (26.5) (25.8) (50.3) (49.1) (3) (2)
 Earnings - Pretax $225.7 $222.2 $486.4 $456.6 2 7
 (a) Fiscal 1993 cumulative sales include $41.5 million from our European snack food entities prior to the formation of the Snack Ventures Europe joint venture on July 11, 1992. Fiscal 1992 quarter and cumulative sales include $84.3 million and $176.5 million, respectively, from our European snack food entities and PYCASA, our Spanish frozen food subsidiary which was sold.
 (b) Fiscal 1992 second quarter results include a net after-tax gain of $1.9 million ($.01 per share) from the sale of PYCASA, our Spanish frozen food subsidiary and restructuring charges for our Betty Crocker packaged mixes production and European food operations, and the call of our 9 3/8 percent debt. Consumer Foods operating profits include a net pretax gain from these items of $19.9 million and corporate expense includes a $5.7 million charge for the debt call.
 GENERAL MILLS, INC.
 CONSOLIDATED STATEMENTS OF EARNINGS
 (Unaudited) (In Millions, Except per Share Data)
 13 Weeks Ended 26 Weeks Ended
 11/29/92 11/24/91 11/29/91 11/24/91
 Sales $2,096.9 $1,992.5 $4,116.5 $3,909.0
 Costs and Expenses:
 Cost of sales 1,080.3 1,045.6 2,122.6 2,047.5
 Selling, general and
 administrative 708.3 652.7 1,344.5 1,259.1
 Depreciation and
 amortization 65.5 59.8 129.4 117.5
 Interest, net 17.1 12.2 33.6 28.3
 Total Costs and Expenses 1,871.2 1,770.3 3,630.1 3,452.4
 Earnings before Taxes 225.7 222.2 486.4 456.6
 Income Taxes 87.6 93.9 188.7 186.2
 Net Earnings $138.1 $128.3 $297.7 $270.4
 Earnings per Share $.85 $.77 $1.82 $1.63
 Dividends per Share $.42 $.37 $.84 $.74
 Average Number of
 Common Shares 163.6 165.6 163.7 165.5
 GENERAL MILLS, INC.
 CONSOLIDATED CONDENSED BALANCE SHEETS
 (In Millions)
 11/29/92 11/24/91 5/31/92
 ASSETS (Unaudited) (Unaudited)
 Current Assets:
 Cash and cash equivalents $55.5 $31.2 $.5
 Receivables 368.4 382.3 291.9
 Inventories 548.4 565.5 487.2
 Prepaid expenses and
 other current assets 94.9 84.0 106.3
 Deferred income taxes 152.1 151.3 148.7
 Total Current Assets 1,219.3 1,214.3 1,034.6
 Land, Buildings and
 Equipment, at Cost 4,024.1 3,598.2 3,909.3
 Less accumulated depreciation (1,276.2) (1,173.7) (1,260.7)
 Net Land, Buildings
 and Equipment 2,747.9 2,424.5 2,648.6
 Other Assets 711.8 601.3 621.8
 Total Assets $4,679.0 $4,240.1 $4,305.0
 LIABILITIES AND STOCKHOLDERS' EQUITY
 Current Liabilities:
 Accounts payable $697.1 $651.1 $632.5
 Current portion of
 long-term debt 55.4 190.2 32.6
 Notes payable 261.8 99.1 169.3
 Accrued taxes 136.7 153.8 127.9
 Other current liabilities 341.9 389.7 409.4
 Total Current Liabilities 1,492.9 1,483.9 1,371.7
 Long-term Debt 1,166.0 821.6 920.5
 Deferred Income Taxes 238.8 247.5 231.5
 Deferred Income Taxes
 - Tax Leases 198.5 211.2 203.0
 Accrued Postretirement Benefits 102.2 107.9 103.6
 Other Liabilities 90.3 71.8 103.8
 Total Liabilities 3,288.7 2,943.9 2,934.1
 Stockholders' Equity:
 Cumulative preference stock,
 none issued -- -- --
 Common stock, 204.2 shares
 issued 353.9 334.5 343.6
 Retained earnings 2,211.1 1,945.0 2,049.0
 Less common stock in treasury,
 at cost, shares of 40.6,
 38.4 and 38.7, respectively (958.2) (765.6) (802.9)
 Unearned ESOP and restricted
 stock compensation (169.2) (174.9) (172.3)
 Cumulative foreign currency
 adjustment (47.3) (42.8) (46.5)
 Total Stockholders' Equity 1,390.3 1,296.2 1,370.9
 Total Liabilities and
 Stockholders' Equity $4,679.0 $4,240.1 $4,305.0
 -0- 12/16/92
 /CONTACT: (Analysts) Dean Belbas, 612-540-2443, or Ted Blood, 612-540-2256; or (Media) R.C. Shulstad, 612-540-3745, all of General Mills/
 (GIS)


CO: General Mills ST: Minnesota IN: FOD SU: ERN

AL -- MN012 -- 7816 12/16/92 14:54 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Dec 16, 1992
Words:1762
Previous Article:JUDITH C. LALKA DART PROMOTED TO EXECUTIVE VICE PRESIDENT FOR COMERICA INCORPORATED
Next Article:RHONE-POULENC HOLDS GENERAL SHAREHOLDER MEETINGS TODAY
Topics:


Related Articles
GENERAL MILLS REPORTS SECOND QUARTER RESULTS
GENERAL MILLS EPS UP 16 PERCENT, EXCLUDING UNUSUAL ITEMS
GENERAL MILLS FIRST QUARTER EPS UP 13 PERCENT
GENERAL MILLS FISCAL 1993 EPS UP 13 PCT. BEFORE UNUSUAL ITEMS; ANNUAL DIVIDEND RATE INCREASED 12 PCT. TO $1.88
GENERAL MILLS FIRST QUARTER EPS UP 7 PERCENT
GENERAL MILLS REPORTS 1994 THIRD-QUARTER RESULTS
General Mills Reports Earnings of $1.04 Per Share for Fiscal 1998 Second Quarter
General Mills Earnings Per Share Up 11 Percent in Fiscal 1999 Second Quarter.
General Mills Reports Record Earnings Per Share Up 11 Percent in Fiscal 2000 Second Quarter.
General Mills Reports Diluted EPS of 70 Cents for Fiscal 2001 Second Quarter; Reported Sales Increased 4 Percent to $1.89 Billion.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters