Printer Friendly

GENERAL MILLS FIRST QUARTER EPS UP 13 PERCENT

 GENERAL MILLS FIRST QUARTER EPS UP 13 PERCENT
 MINNEAPOLIS, Sept. 21 /PRNewswire/ -- General Mills (NYSE: GIS)


13 percent increase in earnings per share for the first quarter of fiscal 1993. Earnings per share were 97 cents, compared with 86 cents earned in the prior year.
 After-tax earnings were $159.6 million, a 12 percent gain. Sales increased 5 percent to $2.02 billion. Sales increased 8 percent excluding revenues of European snack food operations which became part of the Snack Ventures Europe joint venture with PepsiCo Foods International on July 11.
 Chairman Bruce Atwater told shareholders at General Mills' 64th annual meeting that the record performance met the company's first- quarter goal. Results included operating profit gains of 9 percent by Consumer Foods and 15 percent by Restaurants. After-tax return on reported sales reached 7.9 percent, up .5 percentage points versus the prior year and a quarterly record.
 Consumer Foods first-quarter performance was led by excellent profit gains by Big G cereals and Betty Crocker Products. While reported sales grew 5 percent, comparable sales were up 10 percent excluding European snack food revenues in both years. The key factor to overall growth was a 5 percent gain in domestic package food volume, including a more than 6 percent gain by Big G cereals. Big G cereal's volume growth was led by strong performance from Multi Grain Cheerios, Wheaties Honey Gold and Berry Berry Kix, new line extensions of some of the company's oldest established brands. The company's quarterly dollar share of the $8.0 billion retail ready-to-eat cereal market was nearly equal to the all-time quarterly record of 29.5 percent achieved in last year's first quarter.
 Consumer Foods' profit gain included significant planned expenses related to building major new businesses. This included charges of approximately $8 million pretax, $2 million more than last year, for the Cereal Partners Worldwide joint cereal venture with Nestle, which has now entered the Mexican market; and $2 million pre-tax expenses related to start-up costs for a major new snack plant in Holland. These expenses combined to reduce the quarterly profit growth rate by two percentage points.
 Restaurants operating profits grew 15 percent in the first quarter on a 5 percent sales gain, with both Red Lobster and The Olive Garden falling short of their sales goal. Total sales in the casual dining industry declined six percent in July, affected by high political and economic uncertainty. The prior 3-year period averaged 7 percent growth.
 The Olive Garden led overall Restaurant growth with a 20 percent gain in sales and even faster growth in operating profits, despite average unit sales slightly below the prior year. The Olive Garden expanded by seven units in the United States and one in Canada during the first quarter, bringing total units in North America to 349.
 Red Lobster USA's sales were flat but profit growth was about the same as that for total Restaurants. This reflects efforts to improve margins as compared to the prior year, when results were heavily influenced by aggressive $3.99 promotional lunch specials that increased sales but led to a profit decline. Red Lobster Canada continued to experience declines in sales and profits, reflecting the weak consumer spending environment in Canada. Promotional efforts now underway at Red Lobster in both the U.S. and Canada are designed to renew growth in average unit sales from current levels while achieving appropriate margins. New menu items with good consumer appeal and attractive price points are also being developed. The company believes near-term results will remain below plan until improvement in Red Lobster's sales/margin balance and in the casual dining market are in evidence.
 Atwater told the annual meeting audience that General Mills expects 1993 to be another year of record sales, earnings and earnings per share. However, he noted that the planned acquisition of the Nabisco cereal business is expected to dilute fiscal 1993 earnings per share by 5-6 cents. Atwater provided an update of the company's strong progress toward its year 2000 growth goals, citing specific established business strengths, significant actions to build new businesses, and continued productivity gains companywide.
 Prior to the annual meeting, the board of directors approved a quarterly dividend payment of 42 cents per share, payable Nov. 1, 1992, to shareholders of record October 10. The 42-cent quarterly rate was established with the August 1 payment and represented a 14 percent increase. This ensures a 28th consecutive year of General Mills dividend growth.
 In actions at the meeting, shareholders re-elected 14 directors and approved the appointment of KPMG Peat Marwick as the company's public auditor. A shareholder resolution to adopt cumulative voting for directors was defeated.
 EARNINGS HIGHLIGHTS
 (Amounts in Millions, Except per Share Data)
 Thirteen Weeks Ended
 8/30/92 8/25/91
 Sales $2,019.6 $1,916.5
 Net Earnings 159.6 142.1
 EPS .97 .86
 Average Shares Outstanding 163.8 165.3
 OPERATING RESULTS BY SEGMENT
 Percent
 First Quarter Change From
 8/30/92 8/25/91 Prior Year
 Sales:
 Consumer Foods $1,342.6 $1,273.2 5
 Restaurants 677.0 643.3 5
 Total Sales $2,019.6 $1,916.5 5
 Operating Profit:
 Consumer Foods $230.0 $210.3 9
 Restaurants 54.5 47.4 15
 Total Operating Profit 284.5 257.7 10
 Corporate Expenses,
 including Interest (23.8) (23.3) (2)
 Earnings - Pretax $260.7 $234.4 11
 GENERAL MILLS, INC.
 CONSOLIDATED STATEMENTS OF EARNINGS
 (Unaudited) (In Millions, Except per Share Data)
 Thirteen Weeks Ended
 August 30, August 25,
 1992 1991
 Sales $2,019.6 $1,916.5
 Costs and Expenses:
 Cost of sales 1,042.3 1,001.9
 Selling, general and administrative 636.2 606.4
 Depreciation and amortization 63.9 57.7
 Interest, net 16.5 16.1
 Total Costs and Expenses 1,758.9 1,682.1
 Earnings before Taxes 260.7 234.4
 Income Taxes 101.1 92.3
 Net Earnings $159.6 $142.1
 Earnings per Share $.97 $.86
 Dividends per Share $.42 $.37
 Average Number of Common Shares 163.8 165.3
 -0- 9/21/92
 /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


KH -- MN006 -- 1654 09/21/92 12:01 EDT
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:Sep 21, 1992
Words:1052
Previous Article:MIDLAND REPORTS RESULTS FROM HURRICANE ANDREW
Next Article:CAERE CORP. AND DELRINA TECHNOLOGY INK FAX/OCR AGREEMENT; INDUSTRY LEADERS TO GROW PC FAX/OCR MARKET
Topics:


Related Articles
GENERAL MILLS REPORTS SECOND QUARTER RESULTS
GENERAL MILLS EPS UP 16 PERCENT, EXCLUDING UNUSUAL ITEMS
GENERAL MILLS EPS UP 12 PERCENT IN F93 SECOND QUARTER/FIRST HALF
GENERAL MILLS FIRST QUARTER EPS UP 7 PERCENT
GENERAL MILLS REPORTS 1994 THIRD-QUARTER RESULTS
General Mills Earnings Per Share Up 11 Percent in Fiscal 1999 Second Quarter.
General Mills Earnings Per Share Up 10 Percent in Third Quarter Growth Reflects Increasing Unit Volumes, Productivity.
General Mills Reports Record Earnings Per Share Up 11 Percent in Fiscal 2000 Second Quarter.
General Mills Earnings Per Share Up 10 Percent in Fiscal 2001 First 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 © 2017 Farlex, Inc. | Feedback | For webmasters