Profitable Times for General Mills

In all the doom and gloom of these tough economic times, at least one company has reported quarterly results that are leaps and bounds above analyst expectations and extremely solid on their own right. Foods maker General Mills has reported a first-quarter profit jump of 51 percent from last year to this year, launching its shares up.
 
General Mills’ fiscal first quarter net income was $420.6 million, or $1.25 per share, which has increased from a net income of $278.5 million, or 79 cents per share, last year. Revenue has risen 1 percent from last year to $3.52 billion, while Wall Street analysts predicted revenue of $3.49 billion and profits of $1.03 per share.
 
The secret to General Mills’ success this quarter involved a surge in sales combined with lower ingredient and fuel costs. The company also credited increased advertising and marketing efforts and the general tendency to prepare meals at home during a recession with its stellar performance this quarter.

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