"Fiscal 2012 has represented a challenging operating environment, with the highest level of commodity inflation that we've seen in 30 years," said Chief Executive Officer Ken Powell in a statement on Wednesday.

The maker of Progresso soups, Cheerios cereal and Green Giant frozen vegetables said net income was $391.5 million, or 58 cents per share, in the fiscal third quarter, ended on February 26, compared to $392.1 million, or 59 cents per share, a year earlier.

Net sales were $4.12 billion, up from $3.65 billion a year earlier.

The company stood by its forecast for fiscal 2012, which calls for earnings of $2.53 to $2.55 per share, excluding items. It had earlier expected earnings of $2.59 to $2.61 per share, but cut that forecast last month, citing weak sales.

(Reporting By Martinne Geller in New York; Editing by Derek Caney)

• A Permanent Economic Emergency