General Mills to eliminate products in U.S. retail unit
November 24, 2009
by Bakingbusiness Staff
MINNEAPOLIS — General Mills, Inc. plans to exit certain manufacturing products in its U.S. retail segment, according to a Nov. 24 filing with the Securities and Exchange Commission.
The company said the move reflects a desire to rationalize capacity for more profitable items, and it will include products that generated approximately $35 million in net sales in fiscal 2009.
"As a result of our decisions, we recorded a $24.1 million non-cash restructuring, impairment and other exit charge against the related long-lived assets in the second quarter of fiscal 2010 ending Nov. 29, 2009," the company said. "There were no employees affected by these actions."
General Mills said it expects to record an additional $2.5 million in other exit costs related to the actions by the end of the second quarter of fiscal 2011.
Additionally, the company said the fiscal 2010 second-quarter charge is in line with its 2010 full-year guidance, which includes approximately $30 million in restructuring, impairment and other exit costs. General Mills said it expects its second-quarter 2010 earnings per share to be at least $1.43, which is the current ThomsonReuters mean consensus estimate.