General Mills, producer of Cheerios cereal, Green Giant frozen vegetables and Progresso soup, has posted a 4% rise in fiscal Q2 profit and has raised its fiscal full-year EPS forecast to $3.09-3.13 from $3.03-3.08.The solid showing was thanks to higher sales of Fruity Cheerios, snacks and reduced-sugar yogurt. Q2 net income rose to $385 million, or $1.08/share, from $370 million, or $0.97, a year earlier. The Street was expecting EPS of $1.03. Revenue grew 5.3% to $3.47 billion. Overseas revenue swelled 15%, ahead of domestic revenue, which rose 3%. The company has indicated that it expects sales in H2 to slow from H1's growth rate of 6%. Expenses will be higher because of rising commodity costs and marketing for new products.
• Sources: Wall Street Journal, Bloomberg
• Related commentary: General Mills, ConAgra Report Solid 2Qs (AP)
• Potentially impacted stocks and ETFs: General Mills Inc. (GIS) Competitors: Group Danone (DA), Kellogg Co. (K), Kraft Foods Inc. (KFT) ETFs: iShares KLD Select Social Index (KLD), iShares Dow Jones US Consumer Goods Sector Index Fund (IYK)
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