General Mills profit halves due to asset impairment charge

This was offset by a 3 point reduction in net sales growth from foreign currency exchange effects.

Fourth-quarter adjusted earnings per share of 75 cents beat the Zacks Consensus Estimate of 71 cents by 6%.

Street was looking for full-year 2016 earnings of $2.98 per share on annual revenues of $17.77 billion. Previously, the analysts had a Sell rating on the shares. The company had revenue of $4.30 billion for the quarter, compared to the consensus estimate of $4.53 billion.

BCE Inc. (BCE) of the Technology sector (Telecom Services – Domestic) is down -0.37% already this morning, a change from open of -0.44%. On a constant-currency basis, net sales increased 6 percent. Annie’s contributed 1 point of net sales growth and 1 point of pound volume growth. Google Inc. (GOOGL) is trading at $542.380, with a weekly performance of – 3.290% and gross margin of 62.10%.

The adjusted effective tax rate was 28.4%, less than 29.7% in the prior-year quarter.

Google Inc. (GOOGL) of the Technology sector is up 0.21% trading at a volume of 186487 shares.

Segment operating profit improved 13% to $565 million. General Mills operates in three segments: USA Retail, International, and Bakeries and Foodservice. General Mills, like many other USA food producers, has been struggling due to shift in consumer’s preference toward natural and organic food. The yogurt, frozen breakfast, snacks, and cereal platforms led net sales growth for the year. Beginning in January, General Mills began the launch of 50 new products targeting better-for-you foods that feature simple ingredients, protein, bold flavors and are gluten-free. The company is expecting fiscal 2016 sales to match its 2015 sales, which included a 53rd week. Core brand renovation, new products and marketing investments improved yogurt volumes in fiscal 2015. The company has a market cap of $33.21 billion and a P/E ratio of 24.02. Pound volume reduced net sales growth by 1 percent, including incremental contribution from the extra week. “Our global segment also achieved good margin expansion and profit growth in constant currency”, Chairman and CEO Ken Powell said in a statement. On a constant-currency basis, worldwide segment net sales grew 9 percent in the quarter. Shares were not yet active in premarket trade, but are up about 4% in the year so far, while the S&P 500 has gained 0.2%. Google Inc. (GOOGL)’S monthly performance stands at – 0.750% with an analyst rating of 1.9. The company presently has an average rating of “Hold” and an average target price of $55.10. On a constant-currency basis, net sales increased 1 percent.

Last week, General Mills announced the elimination of 675 to 725 jobs at its worldwide business under the new restructuring program, Project Compass. The process is expected to be completed by early fiscal 2017.

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