Shares of General Mills are falling after the maker of Cheerios cereal, Yoplait yogurt and Progresso canned soups cuts its sales and earnings outlook for the year.
The company says sales for its fiscal 2015 are expected to grow at a low-single-digit rate, down from its previous forecast of growth in the mid-single digits.
Adjusted earnings per share are expected to rise at a low-single-digit rate, down from the previous outlook for high-single-digit growth.
Faced with slowing growth, General Mills said this summer it was taking measures to slash costs by $40 million in fiscal 2015, which ends in May.
By fiscal 2016, General Mills says the cumulative annual savings are expected to total between $260 and $280 million.