ConAgra expects additional impairment charge in quarter

by Eric Schroeder
Share This:

OMAHA — ConAgra Foods Inc. on Thursday said it expects to post an additional pre-tax charge of $120 million to $140 million in the fourth quarter of fiscal 2006, reflecting the net assets of the packaged meats business at its estimated fair value, less costs to sell.

Last month, the company reported its fourth-quarter results, saying earnings for the fourth quarter ended May 28 were $108.5 million, or 21c per share.

In a July 20 filing with the Securities and Exchange Commission, ConAgra said that subsequent to year end, it has "continued to assess interest in the packaged meats operations and undertaken steps to prepare the operations for sale. Based on these activities, the company has refined its estimate of the proceeds to be received from the sale of the packaged meats business and, on July 14, concluded that an additional impairment charge is required for the fourth quarter of fiscal 2006."

Comment on this Article
We welcome your thoughtful comments. Please comply with our Community rules.

The views expressed in the comments section of Food Business News do not reflect those of Food Business News or its parent company, Sosland Publishing Co., Kansas City, Mo. Concern regarding a specific comment may be registered with the Editor by clicking the Report Abuse link.