This summary is based on the fourth quarter fiscal 2008 earnings call conducted by General Mills Inc. (GIS: chart) on June 25, 2008.

Management:

Chairman and CEO: Ken Powell
CFO: Don Mulligan
COO International: Chris O’Leary
COO US Retail: Ian Friendly
VP, IR: Kris Wenker

Key Investor Issues:

- Quarterly net sales rose 13% to $3.5 billion.
- Full year diluted EPS were $3.71 versus $3.18 in 2007.
- In 2008, the company repurchased 25 million shares at an average price of $58.

Fourth-Quarter Financial Highlights:

The management reported that volume contributed three points of sales growth.

- The pricing and mix added eight points.
- The foreign currency exchange accounted for two points of growth.

The quarterly segment operating profits increased 5% to $517 million.

- The increase was despite higher input costs and a 20% increase in consumer marketing expense during the quarter.

The net earnings were $185 million during the quarter.

- This includes a reduction of the mark-to-market valuation of certain commodity positions from a net gain of $168 million at the end of Q3 to a net gain of $57 million at the end of the fiscal year.
- The reduction was mainly due to declines in key commodity market prices from the prevailing levels recognized last quarter.
- Excluding the $111 million pre-tax mark-to-market reduction, diluted EPS would have been 73 cents.
- This represents an increase of 18% versus 62 cents in Q4 of 2007.

U.S. Retail Segment Results:

- The fiscal 2008 net sales grew 7% to about $9.1 billion with volume contributing three points of growth.
- The segment operating profits rose 4% to $2 billion including a 12% increase in consumer marketing expense.
- The net sales for the Snacks division increased 12% in 2008 led by grain snacks such as Nature Valley granola bars and Fiber One bars.
- Yoplait sales grew to 10% fueled by Yoplait Light yogurt, Yo-Plus yogurt with probiotic cultures and fiber and new Fiber One yogurt.
- The net sales for the Baking Products division grew 9% including gains for Betty Crocker cookie mixes, Gold Metal flour and the launch of Warm Delights Minis microwavable desserts.
- The Small Planet Foods sales rose 6%.
- The Big G cereals net sales firmed 5%, with strong performance from core brands including Fiber One and the market-leading Cheerios franchise.
- The Meals division recorded a 5% net sales increase, led by Progresso ready-to-serve soups.
- The sales for Pillsbury USA also grew 5%. This was a reflection of growth by Totino’s frozen pizza and hot snacks and Pillsbury refrigerated baked goods.

- During Q4, the U.S. Retail net sales grew 9% with volume 6% stronger.
- Yoplait, Big G and Pillsbury USA led the growth.
- The operating profit increased 5% including 20% growth in consumer marketing expense for the period.

International Segment Results:

- The net sales for the company’s consolidated international businesses grew 21% to $2.6 billion during the year.
- Volume contributed six points of growth, price and mix firmed six points and favorable currency exchange added nine points.
- The company recorded sales growth in every region of operation.
- The Canada net sales grew 14% for the year mainly reflecting favorable currency exchange.
- The net sales in Europe rose 19%.
- In the Asia-Pacific region, the net sales grew 25% and net sales in Latin America firmed 31%.
- The international segment operating profits rose 25% to $269 million despite higher input costs and double-digit growth in consumer marketing expense.

- For the fourth quarter, the International net sales grew 21% to $681million.
- The volume increased 3%, price and mix contributed nine points of growth and foreign currency exchange added another nine points.
- The Q4 operating profits rose 10% to $61 million.

Bakeries & Foodservice Segment Results:

- The net sales grew 11% to more than $2 billion.
- The pricing actions related to higher input costs more than offset a 3% volume decline partly attributable to the absence of volume from businesses divested in the past year.
- The sales in the bakery channel firmed 19% and sales to foodservice distributors and restaurant customers grew at a mid single-digit rate.
- The pricing and grain merchandising earnings fueled 12% operating profit growth for 2008.