US cereal giant General Mills has indicated year-end earnings will
be higher than previously expected, but admits next year's outlook
may be gloomy as rising commodity costs and interest repayments eat
profits.
Like many other food producers General Mills is suffering from
rising costs, which are holding back profits, despite increasing
sales, according to the latest financial report.
Age and habit are key influencing factors when it comes to the type
of cereal US consumers choose to buy, according to a recent study
by Zogby International.
General Mills' net sales increase of three percent to $2.66 billion
for fiscal 2006 first quarter has been dampened by fears that
higher fuel prices will put pressure on earnings for the rest of
the year.
Cereal and snack producer Kellogg will have the edge over
arch-rival General Mills over the next few years as superior
innovations in the premium health sector and a more focused product
portfolio drive the firm forward, writes Chris...
All Big G breakfast cereals produced by General Mills are to be
made with whole grains as the company strives to create a
responsible image in the face of increasing public health concerns.
But the company claims it has not sacrificed...
General Mills is the latest food manufacturer to report a decline
in net profit this year, and again the blame goes on raw material
price hikes and fierce competition in the retail sector writes
Anthony Fletcher.
There are signs that rising commodity costs are pinching the length
of the food chain with US cereal product maker General Mills
warning that, despite strong fourth quarter figures, the soaring
costs will have an impact in the near...