General Mills Profit Down 19% on Costs

General Mills Inc. said its fiscal first-quarter profit fell 19%, the first drop in two years, because of higher costs for commodities and factory closings.

Net income declined to $183 million, or 47 cents a share, in the quarter ended Aug. 29 from $227 million, or 59 cents, a year earlier, the Minneapolis-based company said. Sales climbed 2.7% to $2.59 billion.

Excluding restructuring costs, General Mills said it would have earned 55 cents a share. It was expected to earn 60 cents, the average estimate of 14 analysts surveyed by Thomson First Call.

Shares of General Mills fell 98 cents to $45.35 on the New York Stock Exchange.