General Mills Q1 Profit Falls to $397M as Sales Dip 2.8%, Outlook Reaffirmed

General Mills (NYSE: GIS) reported fiscal first-quarter profit of $397 million, or 74 cents a share, down from $1.2 billion, or $2.22 a share, a year earlier, as the company continues its turnaround effort. Net sales fell 2.8% to $4.39 billion for the quarter ended Aug. 30, slightly beating Wall Street's $4.35 billion estimate. Adjusted earnings of 75 cents a share topped analyst expectations of 72 cents, according to FactSet. The sales decline was driven primarily by the divestiture of the company's U.S. yogurt business. North American retail sales dropped 6.6% to $2.45 billion, offset by a 4.5% rise in international sales to $794.2 million. Organic sales were essentially flat. CEO Jeff Harmening cited a volatile environment, with the company cutting costs and pursuing product innovation. General Mills reaffirmed full-year adjusted earnings guidance of $3.00 to $3.20 a share, versus analyst estimates of $3.07, with organic sales projected between down 1.5% and up 0.5%.