General Mills Cuts Full-Year Profit Forecast Amid Weak Demand

General Mills Inc. (GIS), the maker of Cheerios cereal and Yoplait yogurt, reduced its earnings forecast for this year, citing “weak” demand in the U.S.

Profit for 2012 will be $2.53 a share to $2.55 a share, the Minneapolis-based company said today in a statement. Previously, General Mills predicted $2.59 a share to $2.61 a share. Analysts projected $2.60, the average of estimates compiled by Bloomberg.

General Mills said “weak volume performance” across U.S. retail food categories in December and January hurt results in its fiscal third quarter. Yesterday, J.M. Smucker Co. (SJM), the maker of its namesake jams, said its full-year profit may be less than previously forecast because of lower consumer demand.

General Mills fell 4.5 percent to $38 at 7:55 a.m. in New York. The shares rose 14 percent last year.

To contact the reporter on this story: James Callan in New York at jcallan2@bloomberg.net

To contact the editor responsible for this story: Robin Ajello at rajello@bloomberg.net

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