Net income for the fiscal second quarter that ended Nov. 25, was $390.5 million, or $1.14 per share, compared with $385.4 million, or $1.08 per share, a year ago, the maker of Progresso soup and Pillsbury cookie dough said. Earnings in the most recent quarter included 4 cents a share in expenses for a frozen pizza recall.
Earnings matched the average analyst estimate, according to Reuters Estimates.
Sales rose 6.8 percent to $3.70 billion. Analysts, on average, had been expecting sales of $3.62 billion, according to Reuters Estimates. Strength in the Yoplait yogurt and snack bars businesses lifted sales, as well as a weaker U.S. dollar, which boosts the dollar value of overseas sales.
U.S. retail segment sales rose 3 percent in the quarter, while international sales were up 22 percent.
Operating profit was about flat.
The company backed its full-year profit view of $3.39 to $3.43 per share, but raised its sales forecast to an increase in the mid-single digits from its previous forecast of a low-single-digit increase.
General Mills shares closed at $59.07 Tuesday on the New York Stock Exchange. The stock trades at about 17 times analysts' average 2008 earnings estimate, roughly in line with the valuation of its top rival, Kellogg .