General Mills Raises Earnings Outlook for Current Fiscal Year

20/02/08 General Mills said higher input costs and deliver stronger earnings growth for the fiscal year ending in May 2008. In addition, favorable resolution of certain tax contingencies and mark-to-market gains on commodity positions are expected to result in noncash contributions to fiscal 2008 earnings results.

General Mills said its target for fiscal 2008 diluted earnings per share is now a range of $3.64 to $3.66, including an estimated $0.19 of noncash contributions from the tax items and mark-to-market gains. Excluding these noncash items, targeted fiscal 2008 earnings per share would be a range of $3.45 to $3.47. Previously, the company had targeted earnings per share of $3.39 to $3.43 per share for 2008.  In fiscal 2007, the company earned $3.18 per share.

General Mills also raised its longer-term growth targets. At the end of fiscal year 2005, the company established a long-term earnings growth model, which calls for low-single digit compound annual growth in net sales, mid single-digit compound growth in segment operating profits, and high single-digit compound growth in diluted earnings per share.  The company also set specific targets for sales, segment operating profit and earnings per share in fiscal 2010. Actual performance since 2005 has generally exceeded the average annual growth rates required to achieve these original 2010 targets. As a result, General Mills has increased its goals for 2010 net sales, segment operating profit and earnings per share.

General Mills will discuss its current performance, key strategies and long-term growth goals in a presentation to investors attending the Consumer Analyst Group of New York conference in Boca Raton, Florida. The presentation will be web cast live beginning at approximately 8:00 a.m. ET and can be accessed from the General Mills internet home page: www.generalmills.com.