General Mills Reports Quarterly Earnings Boost Aided By One-Time Gains
Dec. 16, 1986
GOLDEN VALLEY, Minn. (AP) _ General Mills on Tuesday reported a 52 percent gain in earnings for its second quarter, following completion of an 18-month restructuring that included the sale of divisions representing nearly a third of its assets.
The company reported net income of $69.9 million, or 79 cents a share, in the three months ended Nov. 23. That compared with a profit of $46 million, or 52 cents a share, in the same period a year earlier.
Sales rose to $1.33 billion from $1.2 billion.
''We are pleased with results to date and expect that operating momentum will continue in the second half,'' said Chairman Bruce Atwater.
Third quarter results included $9.7 million in one time gains stemming from the restructuring, the company said.
In the restructuring, General Mills spun off 26 divisions, including many businesses that had nothing to do with food and restaurants, said Craig Shulstad, a company spokesman. The most recent move was the sale of the company's furniture business to Chicago Pacific Corp. for $83.5 million cash in August.
For the first six months of the company's fiscal year, profits rose to $129 million, or $1.45 per share, from $94.9 million, or $1.07 per share, a year earlier. Sales rose to $2.52 billion from $2.22 billion.
Atwater said the company reported profit gains in its consumer foods, restaurant, domestic package food and speciality retailing divisions.