General Mills says recent U.S. volume weakness will affect its third quarter results
MINNEAPOLIS – General Mills (NYSE:GIS) said today that weak volume performance across U.S. retail food categories in December and January will affect the company’s results for the quarter ending February 26, 2012. General Mills currently estimates that 2012 third-quarter adjusted diluted EPS will total $0.54 -$0.56. In last year’s third quarter, adjusted diluted EPS was $0.56. The company will report fiscal 2012 third-quarter results on Wednesday, March 21, 2012.
General Mills revised its fiscal 2012 adjusted diluted EPS guidance to $2.53 - $2.55. The company’s guidance had been $2.59 - $2.61. Adjusted diluted EPS excludes the effects of mark-to-market valuation of certain commodity positions, and integration costs for the Yoplait international acquisition completed July 1, 2011.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are based on our current expectations and assumptions. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from the potential results discussed in the forward-looking statements. In particular, our predictions about future earnings could be affected by a variety of factors, including: competitive dynamics in the consumer foods industry and the markets for our products, including new product introductions, advertising activities, pricing actions, and promotional activities of our competitors; economic conditions, including changes in inflation rates, interest rates, tax rates, or the availability of capital; product development and innovation; consumer acceptance of new products and product improvements; consumer reaction to pricing actions and changes in promotion levels; acquisitions or dispositions of businesses or assets; changes in capital structure; changes in laws and regulations, including labeling and advertising regulations; impairments in the carrying value of goodwill, other intangible assets, or other long-lived assets, or changes in the useful lives of other intangible assets; changes in accounting standards and the impact of significant accounting estimates; product quality and safety issues, including recalls and product liability; changes in consumer demand for our products; effectiveness of advertising, marketing, and promotional programs; changes in consumer behavior, trends, and preferences, including weight loss trends; consumer perception of health-related issues, including obesity; consolidation in the retail environment; changes in purchasing and inventory levels of significant customers; fluctuations in the cost and availability of supply chain resources, including raw materials, packaging, and energy; disruptions or inefficiencies in the supply chain; volatility in the market value of derivatives used to manage price risk for certain commodities; benefit plan expenses due to changes in plan asset values and discount rates used to determine plan liabilities; failure of our information technology systems; resolution of uncertain income tax matters; foreign economic conditions, including currency rate fluctuations; and political unrest in foreign markets and economic uncertainty due to terrorism or war. The company undertakes no obligation to publicly revise any forward-looking statement to reflect any future events or circumstances.
Kris Wenker, 763-764-2607 (analysts)
Kirstie Foster, 763-764-6364 (media)