Income for ConAgra up 5% in quarter

by FoodBusinessNews.net Staff
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OMAHA — ConAgra Foods, Inc. posted net income of $175,400,000, equal to 36c per share on the common stock, in the first quarter ended Aug. 26, up 5% from $166,700,000, equal to 33c per share, during the same quarter of the previous year.

Net sales were $2,955,600,000, up 10% from $2,688,600,000 during the same quarter of the previous year.

"I am very pleased with the sales growth across all of our business segments this quarter," said Gary Rodkin, chief executive officer. "Innovation as well as strong marketing and customer fundamentals were key. I also congratulate our Trading and Merchandising team and our Food and Ingredients team for the strong profit growth that drove our strong e.p.s. results."

The Consumer Foods segment posted an operating profit of $176.4 million during the quarter, which was down 3% from $182.7 million during the same quarter of 2006. Sales in the segment were $1,567,300,000, up 3% from $1,522,200,000 during the same quarter of the previous year.

In the Food and Ingredients segment operating profit was $120.2 million, which was up 16% from $104.1 million during the same quarter of 2006. Sales in the segment were $908,700,000, up 11% from $817,000,000 during the same quarter of the previous year.

In the Trading and Merchandising segment, operating profit was $75.6 million, up sharply from $15,600,000 during the same quarter of the previous year. Sales in the segment were $327,900,000, up 60% from $205,400,000 during the same quarter of the previous year.

In the International Foods segment, operating profit was $11.3 million, up 14% from $13.2 million during the same quarter of the previous year. Sales were $151,700,000, which was up 5% from $144,000,000 during the same quarter of the previous year.

During the quarter, ConAgra reorganized its handheld product operations to the Consumer Foods segment from the Food and Ingredients segment. In addition, the company changed management responsibility for a small international export business from the Consumer Foods segment to the International Foods segment.

The company also reaffirmed its guidance for the full fiscal year.

"We are confident in our ability to deliver our targeted fiscal 2008 diluted e.p.s. in the range of $1.48, excluding items impacting comparability, due to our continued focus on our innovation pipeline, sales and marketing execution, operating efficiencies and appropriate price increases," Mr. Rodkin said.

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