Mixed Guidance at General Mills

General Mills(GIS Quote) said results for its just-completed fiscal year will be better than it previously predicted, but warned that a higher tax rate and rising interest costs will hold down growth in the current year.

General Mills expects to earn $2.90 a share in the year ended May 28, 2006, up from its previous guidance of $2.80 to $2.85 a share. The estimate includes an accounting expense of 8 cents a share, and therefore might not be comparable to the Thomson First Call consensus estimate of $2.95 a share.

"The stronger results reflect modestly above-target operating performance along with an approximately 3 cents per share benefit from a favorable tax adjustment realized in the fourth quarter of the year," General Mills said. ...