This excerpt taken from the GIS 8-K filed Jun 29, 2005.
Fiscal 2005 Financial Highlights
For the fiscal year ended May 29, 2005, General Mills net sales grew 2 percent to $11.24 billion. Earnings after tax grew 18 percent to reach $1,240 million. This included a gain of $284 million after tax from businesses divested during 2005, partially offset by $87 million after-tax expense associated with the redemption of $760 million principal amount of General Mills notes due in 2012. Diluted earnings per share grew to $3.08, up 18 percent from $2.60 in fiscal 2004. These earnings per share results reflect the companys adoption of accounting standard EITF 04-8 pertaining to contingently convertible debt, which reduced reported earnings per share in both years.
Net results for both years also include certain identified costs (described in detail below) which primarily relate to restructuring actions taken subsequent to the companys fiscal 2002 acquisition of Pillsbury, and other merger-related costs. These expenses totaled $65 million after tax in 2005 and $39 million after tax in 2004. Excluding these identified costs, the impact of the adoption of EITF 04-8, and the net gain from divestitures and debt repurchase expense, diluted earnings per share in 2005 would have totaled $2.92 compared to $2.85 in 2004.
Chairman and Chief Executive Officer Steve Sanger said 2005 was a successful year for the company. On a comparable 52-week basis, our net sales grew 3 percent, outpacing 2 percent growth in unit volume. Operating profit results in total reflected the significant input cost inflation we experienced in 2005; however, the Bakeries and Foodservice division met its goal of matching last years profits and our International division posted strong profit growth. In addition, after-tax earnings from joint ventures grew 20 percent to reach $89 million. And the strong cash flows that we generated enabled us to pay increased shareholder dividends and invest $430 million in capital to support future growth, while we paid down $2 billion of our debt balance.