Read Larry Connors' blog – Short Term Trading Strategies
Led by its cereal business, General Mills today reported a fiscal 2009 filled with crunchy goodness _ fourth-quarter earnings nearly doubled for the Golden Valley foodmaker, and officials predicted more good times ahead.
Among the winners: sales of Honey Nut Cheerios grew by 17 percent, Lucky Charms by 12 percent, and Fiber One up 35 percent. Overall, General Mills' cereal sales grew by 11 percent for the year.
"2009 was nothing short of a fantastic year for our cereal business," said Ian Friendly, the company's chief operating officer for U.S. retail.
Not so long ago, cereal was viewed by some analysts as a mature and mostly stagnant category, and served as a drag on General Mills' overall growth. The recession has changed that, as consumers ate more meals at home, aided by a huge marketing push from General Mills.
In the fourth quarter, General Mills earned $358 million, a 93-percent gain. Total sales were up 5 percent to $3.6 billion. Last year's earnings performance was hindered by a one-time mark-to-market accounting change. Excluding one-time events, earnings per share rose 18 percent, the company said.
For the full fiscal year, General Mills net sales grew by 8 percent, to $14.6 billion. Net earnings were $1.3 billion, up less than 1 percent.
Chief executive Ken Powell told analysts that food inflation seems to have cooled since last year. General Mills has raised prices in the past few years, in part by
shrinking package sizes, but it also tried to make up the shortfall through increasing efficiency.
"We faced significant input cost pressure in our business last year," Powell said. "Our plan estimated 9 percent inflation, the highest rate that we've seen in many years, and our actual costs essentially matched that estimate."
At midday, shares of General Mills were up $1.85 to $57.87.
Tom Webb can be reached at 651-228-5428.
To see more of the Pioneer Press, or to subscribe to the newspaper, go to http://www.twincities.com. Copyright (c) 2009, Pioneer Press, St. Paul, Minn. Distributed by McClatchy-Tribune Information Services. For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.
More News:
Market Updates |
Stock Alerts |
All Trading News |
Stock Index
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
The Connors Group, Inc.
10 Exchange Place, Suite 1800
Jersey City, NJ 07302
© Copyright 2009 The Connors Group, Inc.
