ConAgra Foods Presents Business Update at Consumer Conference; Fiscal 2008 Third-Quarter EPS to Be Higher Than Planned
February 19 2008 - 8:00AM
Business Wire
Today ConAgra Foods, Inc., (NYSE: CAG) will present a company
update to the Consumer Analyst Group of New York at that group�s
annual conference in Boca Raton, Fla. In his remarks, ConAgra Foods
CEO Gary Rodkin will provide an update on the progress of the
company�s key initiatives and discuss its current priorities.
Regarding its financial outlook, the company expects (excluding
items impacting comparability): Future annual EPS growth of 8-10%.
Sales growth exceeding 4% in the near term, and in the range of 4%
over the long-term. Return on invested capital to exceed 12% in the
near-term and to exceed 13% over the long-term. As previously
communicated, the company considers share repurchases to be the
benchmark for its capital allocation decisions and values a healthy
balance sheet and strong dividend. Regarding its Fiscal 2008 Third
Quarter: The company announced that diluted EPS from continuing
operations for its fiscal 2008 third quarter, which ends Feb. 24,
2008, will be higher than planned. Previously, the company had
communicated expectations for fiscal 2008 second-half EPS to be in
the range of $0.70, excluding items impacting comparability, with
slightly more EPS in the fiscal third quarter than the fiscal
fourth quarter. Today�s announcement regarding the fiscal third
quarter is the result of stronger-than-planned performance in the
company�s Trading and Merchandising segment as well as its Food and
Ingredients segment. Despite improving top-line trends, results for
the company�s Consumer Foods segment continue to be negatively
impacted by significantly higher input costs, an expected
continuation of trends seen earlier this fiscal year. As part of
plans previously communicated, the company recently implemented
pricing actions for a number of its consumer brands and has
announced additional significant increases that will be effective
in late March 2008. These actions are expected to be evident in the
company�s results for the fiscal third quarter and more
significantly in the fiscal fourth quarter. Because the company has
not yet completed its fiscal third quarter, and does not yet know
the final details of the quarter�s performance for all of its
segments, the company will wait to discuss the specifics of the
quarter�s results in the earnings release and conference call
scheduled for March 27, 2008. At that time the company will comment
on upward revisions to full fiscal 2008 EPS guidance. ConAgra
Foods, Inc., (NYSE:CAG) is one of North America�s leading packaged
food companies, serving 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 document contains forward-looking statements.
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 document should understand that these statements are not
guarantees of performance or results. Many factors could affect the
company�s actual 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, the company�s ability to execute its operating
and restructuring plans, availability and prices of raw materials,
product pricing, competitive environment and related market
conditions, operating efficiencies, the ultimate impact of recalls,
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
document, which speak only as of the date made.
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