General Mills: cuts earnings forecast on supply chain costs
(CercleFinance.com) - On Wednesday General Mills cut its already bleak earnings forecast for its current year, due to higher-than-expected freight and logistics costs, along with commodity prices.
The maker of Cheerios cereal now expects constant-currency total segment operating profit to fall by 5% to 6% in FY 2018, compared to previous expectations of up to a 1% fall.
Organic net sales are expected to be in line with their level last year, which is the same as the group's previous guidance.
For the third quarter ended 25 February, net sales increased 2% to 3.9 billion dollars, with organic net sales inching up just 1%.
Total segment operating profit was down 6% at constant currencies over the past quarter.
General Mills shares are down 8.8% in pre-market trading on Wednesday.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The maker of Cheerios cereal now expects constant-currency total segment operating profit to fall by 5% to 6% in FY 2018, compared to previous expectations of up to a 1% fall.
Organic net sales are expected to be in line with their level last year, which is the same as the group's previous guidance.
For the third quarter ended 25 February, net sales increased 2% to 3.9 billion dollars, with organic net sales inching up just 1%.
Total segment operating profit was down 6% at constant currencies over the past quarter.
General Mills shares are down 8.8% in pre-market trading on Wednesday.
Copyright (c) 2018 CercleFinance.com. All rights reserved.