Minneapolis-based food maker General Mills Inc. (NYSE: GIS) announced today that it is raising its fiscal 2008 earnings guidance on higher-than-expected sales growth and cost cutting. For fiscal 2008, ending in May, General Mills expects earnings per share of $3.45 to $3.47. The previous range had been $3.39 to $3.43 per share, and analysts surveyed by Thomson Financial had expected $3.45 per share.
Despite raising grain prices, General Mills has seen strong results from such products as Oat Cluster Crunch cereal, Progresso soups, and Fiber One bars.
Strong growth performances in 2006 and 2007 and the higher expectations for 2008 prompted the company to raise its fiscal 2010 earnings forecast as well. General Mills now expects 2010 net income of more than $4.05 per share, compared to the previously forecast full-year profit of $4 per share. Analysts had predicted 2010 earnings of $4.06 per share.
The company also said it now expects 2010 net sales of more than $14 billion, an increase from its prior forecast of $13.2 billion. Analysts, though, had forecast 2010 sales of $14.33 billion.
Shares of General Mills jumped 2.9% to $58 in pre-market trading, then fell in early trading to $56.12 before rebounding to around $56.90 by mid-day.
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