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General Mills Finance Chief Discusses Pricing Amid Net Income Drop

General Mills Finance Chief Discusses Pricing Amid Net Income Drop

Food product manufacturer General Mills reported its net income for its second fiscal quarter fell 28 percent with higher costs limiting profitability, according to The Associated Press.

Still, revenue climbed 14 percent thanks to higher prices and strong demand among consumers, chief

Food product manufacturer General Mills reported its net income for its second fiscal quarter fell 28 percent with higher costs limiting profitability, according to The Associated Press.

Still, revenue climbed 14 percent thanks to higher prices and strong demand among consumers, chief financial officer Don Mulligan told analysts during a recent conference call.

The news source reports General Mills, like many food manufacturers, have been forced to increase prices for a number of their products to help offset higher commodity, fuel and other costs. In the conference call, one analyst asked the CFO whether or not General Mills had implemented all of its pricing increases by this point.

"We've been clear we began taking pricing last - really end of - the third quarter but more in our fourth quarter of fiscal 2011 in anticipation of the inflation that we saw coming in 2012," Mulligan said, adding that "we're not going to talk perspectively about any pricing actions that we may or may not take" going forward.

The New York Times reports General Mills decided to maintain its full-year outlook in anticipation of strong sales and profitability increases during the second half of the fiscal year.

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