The company behind Cheerios and other popular breakfast cereals announced Tuesday that it’s reducing expectations for yearly revenue and earnings, pointing to consumer concerns about the broader economy as the primary reason.
General Mills stock dropped 4% during pre-market trading hours following the announcement.
The food manufacturer now projects yearly sales will decline between 1.5% and 2%, a more pessimistic outlook than its earlier prediction of a decrease of 1% to an increase of 1%.
The Minneapolis-based company also revised downward its annual adjusted operating profit and adjusted earnings-per-share projections, now expecting decreases of 16% to 20% in constant currency terms. This represents a significant shift from the company’s prior forecast of declines ranging from 10% to 15% in constant currency.
