DOW JONES NEWSWIRES
ConAgra Foods Inc.'s (CAG) fiscal third-quarter earnings rose
19% as the maker of Chef Boyardee pasta, Hunt's ketchup and Peter
Pan peanut butter significantly ramped up profitability at its
consumer segment.
"The continued momentum in our sales, innovation, marketing, and
cost-savings initiatives is generating the second-half results we
expected," said Chief Executive Gary Rodkin.
Packaged-food makers have benefited recently as consumers eat
more meals at home rather than out. The company also has gained
market share in its consumer-foods business and been helped by
lower commodities costs and improved margins.
For the quarter ended Feb. 28, ConAgra reported a profit of
$229.6 million, or 51 cents a share, up from $193.2 million, or 43
cents, a year earlier. Excluding hedging and other gains, earnings
from continuing operations rose to 44 cents a share from 40 cents.
Revenue fell 0.9% to $3.1 billion.
Analysts polled by Thomson Reuters had most recently forecast
earnings of 44 cents a share on $3.15 billion in revenue.
Gross margin rose to 25.5% from 23.7% amid the cost cuts.
Sales at the consumer-foods unit, ConAgra's biggest, sales rose
2.2% amid strong performances of Banquet, Chef Boyardee and Hunt's
products, among others. Profit for the segment jumped 25% as volume
increased 3%. Sales at the commercial-foods segment dropped 6.3%
amid lower flour costs that were passed on to customers while
profit rose 5.5%.
Shares of ConAgra, which reiterated its profit forecast for the
year earnings, closed at $26.10 Wednesday and were inactive
premarket. The stock has risen 68% in the past year.
-By Nathan Becker, Dow Jones Newswires; 212-416-2855;
nathan.becker@dowjones.com