Packaged foods company General Mills Inc. (GIS) said Tuesday that it will cut about 850 jobs worldwide as part of a restructuring plan to improve organizational efficiency and focus on key growth strategies. Looking ahead, the company reiterated its earnings outlook for fiscal 2012.
The maker of Cheerios and Fiber One cereals said it will incur pre-tax asset-related costs of about $13 million on write-down of selected production equipment.
The company will also record pre-tax restructuring charges of about $109 million, reflecting one-time employee separation expenses and the asset-related costs.
About $94 million of these restructuring costs will be recorded in the fourth quarter of fiscal 2012, which ends on May 27. The remaining costs will be recorded in fiscal 2013.
Looking ahead, General Mills affirmed its fiscal 2012 outlook for adjusted earnings per share in a range of $2.53 to $2.55.
On average, nineteen analysts polled by Thomson Reuters expect the company to earn $2.54 per share for the year. Analysts estimates typically exclude special items.
The guidance excludes the fourth-quarter restructuring charge, mark-to-market valuation effects, and Yoplait integration costs.
The company acquired a 51 percent controlling interest in French yogurt maker Yoplait S.A.S. and a 50 percent interest in Yoplait Marques S.A.S. for $1.2 billion in July 2011.
Like most packaged food companies, General Mills is witnessing improvement in sales with economic uncertainties forcing families to stick largely to eat-at-home habits. However, higher commodity costs and other production necessities like fuel have continued to impact the company's margins.
In late March, General Mills reported a profit for the third quarter that edged down to $391.5 million or $0.58 per share from $392.1 million or $0.59 per share in the same period of the prior year, as continuing rise in commodity costs ate into its margins.
Net sales for the quarter grew 13 percent to $4.12 billion from $3.65 billion in the year-ago period.
In Tuesday's regular session, GIS is trading at $38.50, down $0.05 or 0.13 percent on a volume of 87,600 shares.
For comments and feedback contact: editorial@rttnews.com
Business News
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.