General Mills Net Up 5%

NEW YORK - Sep 21/06 - SNS -- General Mills, Inc. reported net earnings of U.S. $267 million on net sales of $2,860 million during the first quarter ending August 27, compare to a net of $252 million on sales of $2,679 million during the same 13-week period last year.

Net sales for General Mills' domestic retail operations grew 5% to $1.91 billion for the first quarter, with unit volume up 3%. Operating profits grew faster than sales, increasing 8% to $447 million. The margin expansion reflects favorable production mix and efficient plant performance.

The Meals division recorded a 7% net sales increase, led by Helper dinner mixes and Progresso ready-to-serve soups. Yoplait division net sales grew 8% with continued strong performance by the Yoplait Light product line and contributions from new Whips! and Thick n' Creamy varieties.

Snacks division net sales grew 7% including contributions from new items such as coffee-flavored Caribou Bars and Select Chex Mix varieties. Big G cereals recorded a 4% net sales increase with gains by established brands such as Honey Nut Cheerios and Fiber One, and contributions from new products including Fruity Cheerios.

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