ConAgra expects additional impairment charge in quarter
July 21, 2006
by Eric Schroeder
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."