General Mills Reports Higher-Than-Expected Profits in Q2 2015

MINNEAPOLIS, MN

General Mills released its financial report for Q2 2015 and six month financial summary report on Tuesday, December 17^th, 2015. Although the company took steps back with regard to both net sales and operating profit, these declines were smaller than expected and inline with internal company forecasts, according to a press release. Although they also declined, earnings per share numbers held up stronger than the $0.76/share figure analysts expected.

"Second-quarter results were broadly in line with the updated outlook we provided in early November,” General Mills Chairman and Chief Executive Officer Ken Powell. “Net sales declined for the quarter as anticipated, reflecting continued weak food-industry trends in the U.S. and slowing growth in key emerging markets. Adjusted diluted EPS came in slightly better than our estimate, primarily due to differences in expense timing. These quarterly results keep us on track to achieve the full-year fiscal 2015 targets announced last month." 

Some highlights from General Mills Q2 report include:

• A 3% decline in net sales to $4.71 billion compared to the same period from last year (on a constant-currency basis, this represents a 1% decline).
• A 8% decline in segment operating profit to $847 million (on a constant-currency basis, this represents a 6% decline).
• A decline in diluted earnings per share to $0.56/share from $0.84/share during the same period last year.
• A decline in adjusted diluted earnings per share to $0.80/share from $0.83/share during the same period from last year (there was no change on a constant-currency basis).

Some highlights from General Mills' 6 month report include:

• A 3% decline in net sales to $8.98 billion (on a constant-currency basis, this represents a 1% decline).
• A 11% decline in first-half segment operating profit to $1.54 billion (on a constant-currency basis, this represents a 10% decline).
• A decline in diluted earnings per share to $1.11/share compared to $1.54/share in last year's first half.
• A decline in adjusted diluted earnings per share to $1.41/share compared to $1.53/share a year ago.

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