A huge charge against earnings for discontinued operations resulted in hefty losses for General Mills for the fourth quarter and all of fiscal 1985, the company reported Thursday. The company also said it will sell its Wallpapers to Go and Lee Wards retail units.
The Minneapolis-based firm, which previously announced plans to divest its fashion, toy and non-specialty divisions, reported a loss for the three months ended May 26 of $108.5 million, which included a charge of $108.6 million from discontinued operations.
That compared to net income of $40.5 million in the fourth quarter of 1984, which included a $10.2-million gain from discontinued operations. Revenue totaled $1.07 billion, up from $1.02 billion a year ago.
For fiscal 1985, General Mills posted a loss of $72.9 million, which included a $188.3-million charge for discontinued operations. In fiscal 1984, the company had net income of $233.4 million, which included a $30.7-million gain from discontinued operations. Revenue totaled $4.29 billion, up from $4.12 billion the year before.
General Mills said it will sell Hayward, Calif.-based Wallpapers to Go, an 87-store chain of decorating centers, and Lee Wards, which sells crafts materials, greeting cards and kitchen accessories. The proposed sales will leave General Mills' specialty retailing group with Eddie Bauer, Talbot's and Pennsylvania House.
General Mills also said it will sell three small restaurant companies, Casa Gallardo, Darryl's and Good Earth. The company had previously said it was considering their sale.