General Mills profit beats as cost cutting pays off

Cost-cutting measures appear to have paid off for General Mills Inc. (NYSE: GIS), as the processed food maker yesterday reported quarterly profits that beat analysts’ expectations.

The maker of the Cheerios and Yoplait brands reported net income rose to $361.7 million, or 59 cents per share, in the third quarter ended Feb. 28, up from $343.2 million, or 56 cents per share, a year earlier.

According to Reuters, General Mills responded to sluggish domestic sales by cutting jobs and selling plants and less-profitable brands. Facing competition from healthier food brands, the company also cut the amount of salt and artificial ingredients in its products.

Despite earning 65 cents per share, excluding items, General Mills' net sales and U.S. sales growth both declined by 8 percent in the quarter.

Read more from Reuters.