General Mills Net Earnings Leap 60%

NEW YORK - Mar 19/08 - SNS -- General Mills reported net earnings of U.S. $430.1 million on sales of $3,405.6 million for the third quarter ending February 24, compared to a net of $267.5 million on sales of $3,053.6 million during the same three month period last year.

This lifted net earnings for the first nine months of the current fiscal year to $1,109.5 million on sales of $10,181 million, compared to a net of $918.9 million on sales of $9,380.6 million during the same three quarters last year.

Third quarter net sales for General Mills' U.S. Retail operations grew 9% to $2.30 billion, with gains recorded by every division. Pound volume grew 8%. Operating profits grew 9% to $486 million.

Snacks division net sales grew 16%, reflecting continued strong consumer demand for Nature Valley grain snacks, Fiber One bars and fruit snacks. Baking Products division net sales also rose 16% fueled by double-digit volume growth. Yoplait division net sales grew 14% led by Yoplait Light yogurt, Yo-Plus yogurt with probiotic cultures and fiber, and introductory shipments of new Fiber One yogurt.

Meals division net sales rose 8%, reflecting growth by Progresso ready-to-serve soups and Green Giant frozen vegetables. Pillsbury USA division net sales also grew 8%, including gains by Pillsbury refrigerated dough products and Totino's pizza rolls. Net sales for Big G cereals grew 3%, led by Cheerios varieties and the Fiber One cereal franchise. Net sales for the company's Small Planet Foods organic business rose 14%.

Through nine months, U.S. Retail segment net sales increased 6% to $6.85 billion. Pound volume grew 3%. Operating profits increased 4% including product recall expenses and a 9% increase in consumer marketing investment year-to-date.

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