General Mills Inc. (GIS) reaffirmed its earnings guidance for the fiscal year ending May 26, 2013, of $2.65 to $2.67 per share, before certain items affecting comparability. Analysts polled by Thomson Reuters expect the company to report earnings of $2.68 per share for fiscal 2013. Analysts' estimates typically exclude special items.
The company also previewed its fiscal 2014 plans, which include stronger earnings per share growth and increased cash returns to shareholders.
Chairman and Chief Executive Officer Ken Powell said, "We are completing a two-year period of significant investment that strengthened our business in our core U.S. market and meaningfully expanded our base in international markets. Our focus now is on integrating the new operations and executing well across the entire company. We see stronger growth in our immediate future. In December, we raised our earnings outlook for fiscal 2013. And in fiscal 2014, our plans call for high single-digit EPS growth, consistent with our long-term model."
Repurchase activity is expected to reduce the average number of shares outstanding by 2 percent in fiscal 2014.
The company said its U.S. Retail segment is expected to achieve low single-digit sales growth and stronger operating profit growth in fiscal 2013. Chief Operating Officer for U.S. Retail Ian Friendly said 2014 plans add up to another year of good growth.
The company expects reported net sales from international operations to exceed $5 billion in fiscal 2013.
Excluding acquisitions, international sales have been growing at a high single-digit compound rate over the past five years. In fiscal 2014, the company expects its established businesses to record continued sales and profit growth, and the company expects its new businesses to contribute sales growth and approximately 15 cents of operating earnings per share.
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