General Mills Previews Fiscal 2014 Plans For Stronger Earnings Growth And Increased Cash Returns To Shareholders

  General Mills Previews Fiscal 2014 Plans For Stronger Earnings Growth And
                    Increased Cash Returns To Shareholders


PR Newswire

MINNEAPOLIS, Feb. 19, 2013

MINNEAPOLIS, Feb. 19, 2013 /PRNewswire/ -- In conjunction with a presentation
today at the Consumer Analyst Group of New York (CAGNY) investor conference,
General Mills (NYSE: GIS) reaffirmed its earnings guidance for the fiscal year
ending May 26, 2013, of $2.65 to $2.67 per share, before certain items
affecting comparability. The company also previewed its fiscal 2014 plans,
which include stronger EPS growth and increased cash returns to shareholders.


Chairman and Chief Executive Officer Ken Powell said, "We are completing a
two-year period of significant investment that strengthened our business in
our core U.S. market and meaningfully expanded our base in international
markets. Our focus now is on integrating the new operations and executing
well across the entire company. We see stronger growth in our immediate
future. In December, we raised our earnings outlook for fiscal 2013. And in
fiscal 2014, our plans call for high single-digit EPS growth, consistent with
our long-term model."

General Mills' operating cash flow after capital investment has averaged more
than $1.3 billion per year since 2008. Chief Financial Officer Don Mulligan
said, "Our plans for fiscal 2014 call for returning greater levels of cash to
shareholders through both increased share repurchase activity and dividend
growth." Repurchase activity is expected to reduce the average number of
diluted shares outstanding by 2 percent in fiscal 2014.

General Mills said its U.S. Retail segment is expected to achieve low
single-digit sales growth and stronger operating profit growth in fiscal 2013.
Chief Operating Officer for U.S. Retail Ian Friendly said 2014 plans add up to
another year of good growth. "We have a strong line-up of consumer-focused
news and differential product innovation, including new yogurt items, new
cereals, and comprehensive plans for other key categories including dinner
mixes, baking products and snacks," he said.

General Mills expects reported net sales from international operations to
exceed $5 billion in fiscal 2013. Chief Operating Officer for International
Chris O'Leary said, "We've made several acquisitions recently—most notably the
international Yoplait yogurt business and Yoki Alimentos in Brazil. But
growth from our base business has been the real story. Excluding acquisitions,
international sales have been growing at a high single-digit compound rate
over the past five years. In fiscal 2014, we expect our established
businesses to record continued sales and profit growth, and we expect our new
businesses to contribute sales growth and approximately 15 cents of operating
earnings per share."

A webcast of today's General Mills presentation at the CAGNY conference can be
accessed live via the internet at:, beginning at 8:00
a.m. Eastern Time. The webcast will be archived on General Mills website
through March 8, 2013.

This press release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995 that are based on our
current expectations and assumptions. These forward-looking statements,
including the statements made by management, are subject to certain risks and
uncertainties that could cause actual results to differ materially from the
potential results discussed in the forward-looking statements. In particular,
our predictions about future net sales, earnings, share repurchase activity
and dividend growth could be affected by a variety of factors, including:
competitive dynamics in the consumer foods industry and the markets for our
products, including new product introductions, advertising activities, pricing
actions, and promotional activities of our competitors; economic conditions,
including changes in inflation rates, interest rates, tax rates, or the
availability of capital; product development and innovation; consumer
acceptance of new products and product improvements; consumer reaction to
pricing actions and changes in promotion levels; acquisitions or dispositions
of businesses or assets; changes in capital structure; changes in laws and
regulations, including labeling and advertising regulations; impairments in
the carrying value of goodwill, other intangible assets, or other long-lived
assets, or changes in the useful lives of other intangible assets; changes in
accounting standards and the impact of significant accounting estimates;
product quality and safety issues, including recalls and product liability;
changes in consumer demand for our products; effectiveness of advertising,
marketing, and promotional programs; changes in consumer behavior, trends, and
preferences, including weight loss trends; consumer perception of
health-related issues, including obesity; consolidation in the retail
environment; changes in purchasing and inventory levels of significant
customers; fluctuations in the cost and availability of supply chain
resources, including raw materials, packaging, and energy; disruptions or
inefficiencies in the supply chain; volatility in the market value of
derivatives used to manage price risk for certain commodities; benefit plan
expenses due to changes in plan asset values and discount rates used to
determine plan liabilities; failure of our information technology systems;
foreign economic conditions, including currency rate fluctuations; and
political unrest in foreign markets and economic uncertainty due to terrorism
or war. The company undertakes no obligation to publicly revise any
forward-looking statement to reflect any future events or circumstances.

SOURCE General Mills

Contact: Analysts, Kris Wenker, +1-763-764-2607, or Media, Kirstie Foster,
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