General Mills Posts Small Gain in Profit

Cereal and snack-foods maker General Mills Inc. reported a small increase in fiscal second-quarter earnings but said sharply rising commodity costs would constrict its full-year profit.

The Minneapolis-based maker of Wheaties cereal and Betty Crocker baking mixes said net income rose to $370 million, or 97 cents a share, in the quarter ended Nov. 27 from $367 million, or 92 cents, a year earlier. Both periods include accounting provisions for convertible debt, which reduced earnings by 5 cents a share. Sales were $3.27 billion, up 3% from $3.17 billion.

General Mills shares rose 75 cents, or 1.5%, to $50.10, about midway between their high of $53.89 and low of $44.67 over the last year.