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An
assessment of its Green Giant brand showed the business's market
value was now lower than its carrying value, the company said in
a statement on Wednesday.
General Mills has put up Green Giant for sale, people familiar
with the matter told Reuters in March.
The company's shares rose 0.5 percent to $56.00 in light
premarket trading on Wednesday.
General Mills' revenue in the quarter missed analysts' average
expectations, mainly due to a strong dollar, but cost cuts
helped profit beat estimates in the quarter.
The Minneapolis, Minnesota-based company has been grappling with
sluggish sales at home, where changes in eating habits are
driving consumers away from some of the main products it sells.
That had forced the company to cut costs by improving its
domestic supply chain, cutting jobs, and closing facilities. Its
restructuring bill was $35 million in the quarter ended May 31.
Revenue at the U.S. retail segment, the company's largest by
sales, increased 5 percent to $2.5 billion, helped by higher
sales of yogurt, snacks and frozen breakfast. Sales in
international markets fell 8.8 percent to $1.22 billion.
While total revenue inched up 0.4 percent to $4.30 billion, it
was less than the $4.53 billion analysts were expecting,
according to Thomson Reuters I/B/E/S.
Net earnings attributable to General Mills fell 54 percent to
$186.8 million, or 30 cents per share. Excluding items, its
profit of 75 cents per share topped estimate of 71 cents.
(Reporting by Ramkumar Iyer in Bengaluru; Editing by Savio
D'Souza)
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