General Mills Reports Q4 Adj. EPS Of $0.75
General mills (GIS) reported fourth-quarter net income to company of $186.8 million or $0.30 per share, compared to $404.6 million or $0.65 per share, prior year. The company noted that it recorded an intangible asset impairment charge of $260 million, a $79 million charge related to the repatriation of foreign earnings, and restructuring and project-related charges totaling $35 million pretax, for the fourth quarter in 2015. Adjusted earnings per share totaled $0.75 for the fourth quarter.
On average, 15 analysts polled by Thomson Reuters expected the company to report profit per share of $0.71 for the quarter. Analysts' estimates typically exclude special items. ? General Mills estimates that the extra week contributed 6 points of net sales growth in the fourth quarter. Earnings contributed by the extra week totaled approximately $0.04 per share.
Net sales were $4.30 billion compared to $4.28 billion last year. Analysts expected revenue of $4.53 billion for the quarter. On a constant-currency basis, fourth-quarter net sales were up 6 percent. Fourth-quarter net sales for the U.S. Retail segment increased 5 percent to $2.5 billion.
On a constant-currency basis, General Mills expects fiscal 2016 net sales to be essentially match the 2015 levels that included a 53rd week. Constant-currency adjusted EPS is expected to grow at a mid single-digit rate from the base of $2.86 earned in fiscal 2015. At current exchange rates, the company estimates a 4-cent headwind to fiscal 2016 adjusted EPS from currency translation. (dpa)
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