General Mills reports 2Q profit up to 390.5M dollars

General Mills Inc. reported Wednesday that its second-quarter profit edged up as revenue growth offset rising ingredient costs, marketing spending and recall expenses.

Cereal and packaged foods maker earned 390.5 million dollars -1.14 dollars per share –for the period ended Nov. 25 versus $385.4 million, or $1.08 per share, in the year-ago period, the AP reports.

The latest quarter included 13 million in restructuring and related costs and said expenses related to the recall of frozen pepperoni pizza lowered results by 4 cents per share, the company said.

General Mills’ revenue grew 7 percent to $3.7 billion from $3.47 billion a year earlier.

Analysts polled by Thomson Financial expected net income of $1.13 per share on sales of $3.62 billion. The earnings estimates typically exclude one-time items.

U.S. retail revenue grew to $2.52 billion from $2.44 billion with solid results from the Yoplait division and Nature Valley snacks, while international sales increased to $665.7 million from $544.6 million on strength in Latin America. Bakeries and foodservice revenue climbed to $516.7 million from $480.3 million due to price increases implemented to offset rising input costs.

The company maintained its 2008 profit outlook between $3.39 and $3.43 per share.

Analysts predict earnings of $3.45 per share on revenue of $13.01 billion.

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