General Mills has lowered its forecasts for annual sales and earnings, blaming “continued weak food industry trends” in the US and “slowing growth” in key emerging markets.

The company said today (7 November) its operating profit for the financial year ending in May, excluding the impact of currency exchange, is expected to see a low single-digit decline from last year’s level of US$3.15bn.

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The forecast includes the anticipated positive impact of cost savings – such as a $400m reduction in cost of goods and $40m in projects to streamline North American operations. General Mills’ prior forecasts had pointed to mid-single digit constant currency growth in operating profit.

Adjusted earnings per share is now expected to grow in the low single digits from the $2.82 earned last year. Previously, the company had predicted high single-digit growth in earnings per share.

Net sales are now expected to grow in the low single-digits from last year’s base of $17.9bn. This includes the contribution of around US$120m from recently-acquired US natural and organic food maker Annie’s and the benefit of an additional week of trading in the year, the company noted.

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General Mills has been hit by difficulties at its US retail business in particular. The company stressed its market share is up in key categories in the country, including yoghurt, cereal, grain and fruit snacks. However, according to Nielsen data, General Mills’ composite dollar share is down 15 basis points due to declines in frozen vegetables and dessert mixes.

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General Mills stressed it is stepping up efforts to reduce costs from its North American supply chain. “By fiscal 2016, cumulative annual savings from these efforts are expected to total between $260m and $280m. Cumulative annual savings in fiscal 2017 are expected to exceed 2016 levels,” the company said today.

Shares in General Mills were down 3.36% at 09:32 ET, dropping to $51.48.