General Mills Cuts Earnings Expectations For Fiscal Year
In a sign of continued woes for a struggling company, General Mills announced today that it is reducing sales and earnings expectations for the entirety of its fiscal year.
Retail sales in the U.S. have lagged, causing the Golden Valley-based food production company to lower net sales expectations to “low single-digit” growth in the 2015 fiscal year that ends in May from the $14.9 billion base in 2014.
Previously, the company expected to see mid single-digit growth.
Consumers’ changing food preferences have caused headaches for General Mills recently. In September, the company failed to meet Wall Street’s expectations for the quarter and announced plant closings and a plan to cut $100 million in costs by 2017.
Stocks fell sharply on the news. By afternoon trading on Friday, shares were down more than 3 percent to $51.26.