NEW YORK (TheStreet) -- Shares of packaged food company General Mills are falling on Wednesday after reporting lower-than-expected quarterly results. Sales were down 0.1% from the year-ago period, due to the later Thanksgiving holiday not being included in the second quarter this year. Chief Executive Officer Ken Powell said results were also dragged down by higher ingredient costs and beverage industry sales. Looking ahead, General Mills expects foreign currency effects to pose a greater challenge than the company originally estimated.
Shares of packaged food company General Mills are falling on Wednesday after reporting lower-than-expected quarterly results.
Excluding items, the Cheerios-maker reported earnings of 83 cents a share in the latest quarter, below analysts' expectations for earnings of 88 cents a share, according to Thomson Reuters. Sales were down 0.1% from the year-ago period, due to the later Thanksgiving holiday not being included in the fiscal second quarter this year. CEO Ken Powell said results were also dragged down by higher ingredient costs and beverage industry sales.
Currency-exchange effects also weighed on net sales growth in the international unit, and the company expects that foreign currency effects will be a "greater headwind than originally estimated." The company said the possible devaluation of Venezuela's currency may reduce fiscal 2014 adjusted earnings per share to the low end of its forecast.
At last check, shares were slipping about 1.6% to $48.80. In New York, I'm Brittany Umar for TheStreet.
Written by Brittany Umar in New York.
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