CAG ConAgra Brands Inc

As a follow up to a previous announcement, ConAgra Foods, Inc. (NYSE:CAG), one of America's leading packaged food companies, today provided more details on its effort to streamline its manufacturing operations. Last March, ConAgra Foods announced it would close several plants as part of its overall strategy to achieve long-term, profitable growth. Today, the company is providing an update on plant closures, announcing the planned construction of a new regional manufacturing operation and communicating a redistribution of work among ConAgra Foods plants. Collectively, these actions will help streamline operations, reduce operating costs, improve capacity utilization and improve gross margins. The operational changes announced today are expected to occur over the next 12 to 18 months, include five closures and result in a workforce reduction of approximately 400 employees. The initial changes announced today are part of the company's previously announced restructuring program; additional plant rationalization will be announced as the program continues. By fiscal 2009, the company expects total plant rationalization efforts under the program to result in a $100 million reduction in annual fixed costs. Today's announcement includes: -- ConAgra Foods plans to construct a new facility in Forth Worth, Texas, upon approval of local tax incentives, to absorb some redistributed volume of canned bean, chili and pasta products from six facilities: Trenton, Mo., Newport, Tenn., Milton, Pa., Oakdale, Calif., Archbold, Ohio and an existing Fort Worth location. Plans call for the Archbold and current Fort Worth locations to close. -- ConAgra Foods' tomato paste production facility in Helm, Calif., will operate on a seasonal basis only, and other product volumes will transfer to Oakdale, Calif. -- The company's Memphis, Tenn., plant will discontinue production of plastic containers used for vegetable oil products, and use a third-party supplier. -- The company's Waterloo, Iowa, pudding plant will expand and absorb production from Rossford, Ohio, which will close. The Menomonie, Wis., pudding facility will also absorb pudding production from Rossford. -- ConAgra Foods' Folcroft, Penn., snack plant will close; production will shift to Milton, Pa., and Garner, N.C., snack locations. -- The company's taco shell production facility in Laval, Quebec, will close, marking ConAgra Foods' exit from this business. "Our rationalization initiatives are designed to result in improved efficiencies and fixed cost savings that align with our strategy of strengthening long-term operating performance," said Gary Rodkin, ConAgra Foods chief executive officer. "This is another key element in achieving a more efficient cost structure that will fuel growth by allowing more focused investments in marketing and innovation." ConAgra Foods, Inc. (NYSE:CAG) is one of North America's leading packaged food companies, serving consumer grocery retailers, as well as restaurants and other foodservice establishments. Popular ConAgra Foods consumer brands include: Banquet, Chef Boyardee, Egg Beaters, Healthy Choice, Hebrew National, Hunt's, Marie Callender's, Orville Redenbacher's, PAM and many others. For more information, please visit us at www.conagrafoods.com. Note on Forward-Looking Statements: This news 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. The company undertakes no responsibility to update these statements. Readers of this release should understand that these statements are not guarantees of performance or results. Many factors could affect the company's actual financial results and cause them to vary materially from the expectations contained in the forward-looking statements. These factors include, among other things, future economic circumstances, industry conditions, availability and prices of raw materials, product pricing, competitive environment and related market conditions, operating efficiencies, the company's ability to execute its operating and restructuring plans, access to capital, actions of governments and regulatory factors affecting the company's businesses and other risks described in the company's reports filed with the Securities and Exchange Commission. The company cautions readers not to place undue reliance on any forward-looking statements included in this release, which speak only as of the date made.