EmailGeneral Mills (GIS $37.47 -0.68) reported fourth quarter earnings of $0.60 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus of $0.59, while revenues rose 11.9% year/year to $4.07 billion versus the $4.12 billion consensus. The company issued downside guidance for fiscal year 2013 with EPS of $2.65 versus the $2.75 consensus. The company expects fiscal 2013 net sales to grow at a mid-single-digit rate vs consensus of +4.9%.
The company's business plan assumes input cost inflation of 2 to 3%. Segment operating profits are expected to increase slightly faster than sales, reflecting strong holistic margin management initiatives and significant administrative cost savings. Media investment is expected to at least match the fiscal 2012 level of $914 million worldwide. Increased pension expense (reflecting a lower discount rate and a lower asset return assumption) and a higher tax rate are expected to reduce earnings growth in 2013 by a combined total of 8 cents per share, while increased share repurchases are expected to contribute to EPS growth for the year. The fiscal 2013 guidance provided above does not include any contribution from the anticipated acquisition of Yoki Alimentos. EPS guidance includes an estimated $0.02-0.03 per share drag from partial-year results for Yoki.
