General Mills Q1 Earnings Beat Expectations

General Mills Inc GIS has reported a 12% increase in its first-quarter net income. GIS posted its Q1 net income at $472.1 million, or $0.70 per share, up from $420.6 million, or $0.62 per share, in the year-ago quarter. The company's adjusted net income came in at $0.64 per share. GIS' sales increased 1% y/y to $3.53 billion. However the analysts were expecting the company to report its earnings at $0.62 per share, on revenue of $3.57 billion. GIS Chairman and Chief Executive Officer Ken Powell said, “We're pleased to see continued growth in volume and net sales across our worldwide businesses. Consumer demand for our established brands remains strong, and new products are making good contributions to our sales results. This top line resilience, coupled with our continuing focus on holistic margin management (HMM), has us off to a solid start in 2011.” General Mills reaffirmed its adjusted earnings projections at $2.46 per share to $2.48 per share for 2011. However, the analysts expected 2011 earnings at $2.49 per share. Powell added, “The global operating environment is still quite challenging, but our food businesses are resilient and continue to demonstrate high-quality growth.” GIS' shares lost 2.24% to $34.87 in pre-market trading. Read more from Benzinga's Company news. Learn how to find the best stocks to trade each day in our 70 page E-Book and 90 minute online video for free.