General Mills starts new cost-cutting plans as sales slip, shares -3%

General Mills (GIS) -3.1% premarket after FQ4 results missed expectations, with revenues falling 2.9% to $4.28B from $4.41B in the year-ago quarter.

U.S. branded goods retail sales fell 1.4% to $2.44B, sales in the international segment dropped 6.8% to $1.34B, and revenue from convenience stores and food service added 1.1% to $507.5M.

GIS says it has started a review of its North American manufacturing and distribution network to identify possible cuts in capacity and elsewhere, as part of new cost-cutting plans to generate $40M in pretax savings during the new fiscal year.

Expects net sales for FY 2015 to grow in the mid-single digits, with adjusted EPS growing at a high single-digit rate; analyst consensus had projected 4% net sales growth and 10% EPS growth.

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