ConAgra income falls 15% in second quarter
BakingBusiness.com, Dec. 20, 2011
by Staff

OMAHA — Higher food costs put pressure on ConAgra Foods’ income during the second quarter, leading to a 15% decrease in income, the Omaha-based company said.

For the quarter ended Nov. 27, the company had income of $171.8 million, equal to 41c per share on the common stock, up 15% from $200.9 million, or 46c per share, during the same quarter of the previous year. Sales for the quarter were $3,403.9 million, up 8% from $3,147.5 million.

“We are pleased with our progress in both operating segments,” said Gary Rodkin, chief executive officer. “The quarter’s higher-than-planned comparable earnings per share reflects strong double-digit operating profit growth for our Commercial Foods segment, which has successfully overcome difficult operating conditions and implemented pricing. We are encouraged by our progress in fighting inflation in the Consumer Foods segment; volumes for that segment have performed largely as expected given ongoing price increases. The marketplace environment remains difficult due to continuing inflationary pressures and the impact of the current economy on consumers, so we are cautious about business conditions. Our team is managing through these circumstances well by focusing on net price realization, productivity, and appropriate brand support, and we are confident in our ability to deliver our overall e.p.s. and cash flow expectations for the fiscal year.”

The Consumer Foods segment had an operating profit of $256.3 million during the second quarter, down 8% from $278.5 million during the same quarter of the previous year. The segment had sales of $2,178.2 million, up 4% from $2,091.4 million.

The Commercial Foods segment had an operating profit of $160.8 million, up 26% from $127.4 million during the same quarter of the previous year. Sales for the segment were $1,225.7 million, up 16% from $1,056.1 million.

For the six months ended Nov. 27, the company as a whole had income of $257.1 million, or 62c per share, down 26% from $347.3 million, or 78c per share, during the same period of the previous year.

Sales for the segment were $6,475.9 million, up 9% from $5,951.8 million.