ConAgra Foods Comments on Fiscal 2011 Second-quarter Diluted EPS and Reduces Fiscal 2011 Full-Year Diluted EPS Growth Expectations; Receives $554 Million in Cash from Repayment of Notes Receivable; Board Authorizes Additional Share Repurchases
ConAgra Foods Comments on Fiscal 2011 Second-quarter Diluted EPS and Reduces Fiscal 2011 Full-Year Diluted EPS Growth Expectations; Receives $554 Million in Cash from Repayment of Notes Receivable; Board Authorizes Additional Share Repurchases | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OMAHA, Neb., Dec 09, 2010 (BUSINESS WIRE) -- Today ConAgra Foods, Inc., (NYSE: CAG) announced that its fiscal 2011 second-quarter diluted EPS will be lower than planned, at approximately $0.45 as reported and on a comparable basis. The fiscal second-quarter results primarily reflect difficult category conditions, softer-than-planned response to promotions, and higher-than-planned inflation in the Consumer Foods segment. Weaker-than-expected profits from the Lamb Weston specialty potato operations in the Commercial Foods segment also negatively impacted results. The company is revising its guidance for fiscal 2011 diluted EPS and now expects a low-single-digit rate of diluted EPS growth, adjusted for items impacting comparability, over the comparable $1.74 per share earned in fiscal 2010. Previously, the company expected fiscal 2011 diluted EPS to show 5-7% comparable growth. The downward revision reflects weaker-than-planned first-half EPS results, as well as earnings dilution resulting from early payment of payment-in-kind notes receivable by a debtor.
The company expects a year-over-year increase in operating profit in the second half of fiscal 2011 based on:
The company will provide more details on the fiscal 2011 second-quarter performance and full-year outlook in its regularly scheduled earnings release on Dec. 21, 2010. ConAgra Foods, Inc., (NYSE: CAG) is one of North America's leading food companies, with brands in 97 percent of America's households. Consumers find Banquet, Chef Boyardee, Egg Beaters, Healthy Choice, Hebrew National, Hunt's, Marie Callender's, Orville Redenbacher's, PAM, Peter Pan, Reddi-wip, Slim Jim, Snack Pack and many other ConAgra Foods brands in grocery, convenience, mass merchandise and club stores. ConAgra Foods also has a strong business-to-business presence, supplying frozen potato and sweet potato products as well as other vegetable, spice and grain products to a variety of well-known restaurants, foodservice operators and commercial customers. For more information, please visit us at www.conagrafoods.com. This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current views and assumptions of future events and financial performance and are subject to uncertainty and changes in circumstances. Readers of this release should understand that these statements are not guarantees of performance or results. Many factors could affect our actual financial results and cause them to vary materially from the expectations contained in the forward-looking statements, including those set forth in this release. These factors include, among other things: availability and prices of raw materials; the impact of the accident at the Garner, North Carolina manufacturing facility, including the ultimate costs incurred and the amounts received under insurance policies; the effectiveness of our product pricing and promotions; future economic circumstances; industry conditions; our ability to execute our operating plans; the success of our innovation, marketing, and cost savings initiatives; the competitive environment and related market conditions; operating efficiencies; the ultimate impact of recalls; access to capital; actions of governments and regulatory factors affecting our businesses, including the Patient Protection and Affordable Care Act; the amount and timing of repurchases of our common stock, if any; and other risks described in our reports filed with the Securities and Exchange Commission. We caution readers not to place undue reliance on any forward-looking statements included in this release which speak only as of the date of this release.
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