General Mills profit declines by 17%

General Mills Inc, the second-largest US cereal maker, said fourth-quarter earnings dropped 17 percent after gains from commodities trading declined.

Profit for the 12 months ending May 2009 will rise to $3.78 to $3.83 a share from $3.52, General Mills reaffirmed yesterday, as costs jump 9 percent. Fourth-quarter earnings excluding trading rose to 73 cents, matching the amount the company gave on June 18.

Sales rose the most since 2002. General Mills countered soaring grain, cocoa and fuel costs by increasing cereal prices about 4 percent and charging more for Pillsbury breakfast pastries and Green Giant canned vegetables.