ConAgra Foods Updates Analysts at Consumer Conference
February 22 2011 - 7:30AM
Business Wire
Today ConAgra Foods (NYSE: CAG) will provide a company update to
analysts and investors at the annual Consumer Analyst Group of New
York Conference in Boca Raton, Fla. ConAgra Foods CEO Gary Rodkin
and Chief Financial Officer John Gehring will present the company’s
accomplishments and outlook.
Rodkin will discuss the company’s strong operating foundation,
highlighting the progress in its Consumer Foods’ frozen food
operations and growth opportunities in other areas of the business.
Rodkin will also emphasize that in today’s inflationary
environment, price increases are necessary; these increases are
underway and should favorably impact the company’s results over the
next few quarters.
Gehring will confirm that the company is on track to meet its
fiscal 2011 EPS expectations, previously communicated as a low
single-digit rate of EPS growth over the comparable $1.74 earned in
fiscal 2010. He will note that specific projections for fiscal 2012
are still being developed. With regard to the long-term financial
outlook, he will state:
- The company expects approximately 3%
annual sales growth.
- The company expects 6-8% EPS growth
annually, adjusted for items impacting comparability.
- The company expects Return on Invested
Capital to be 13-14%.
- Paying a top-tier dividend is a
priority for the company.
- The company expects to repurchase
shares and invest in growth, both organically and through
acquisitions, as opportunities arise.
As part of the company’s efficiency initiatives, Gehring will
note a recently approved restructuring plan that will result in an
estimated $65 million of pre-tax charges over an 18-month period.
Approximately $25 million of these charges represent a cash
outlay.
The presentation that accompanies today’s remarks will be
archived on the company’s website under the section for
Investors.
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.
Note on Forward-looking Statements
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. The company
undertakes no responsibility for updating 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: availability
and prices of raw materials; the impact of the 2009 accident at the
Garner, N.C., manufacturing facility, including the ultimate costs
incurred and the amounts received under insurance policies; the
effectiveness of its product pricing; future economic
circumstances; industry conditions; the company's ability to
execute its operating and network optimization plans; the success
of the company's innovation, marketing, and cost-saving
initiatives; the amount and timing of repurchases of the company's
common stock, if any; the competitive environment and related
market conditions; operating efficiencies; the ultimate impact of
the company's product recalls; access to capital; actions of
governments and regulatory factors affecting the company's
businesses, including the Patient Protection and Affordable Care
Act; 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 of this release.
Regulation G Disclosure
Below is a reconciliation of diluted
earnings per share adjusted for items impacting comparability.
FY10 EPS - Reconciliation for
Regulation G Purposes
TotalFY10
Diluted EPS from continuing operations $ 1.67
Items impacting comparability: Expense related to
unallocated mark-to-market impact of derivatives (Q1) 0.01
(Benefit) related to unallocated mark-to-market impact of
derivatives (Q2) (0.01 ) (Benefit) related to gain on sale of
Luck's brand (Q3) (0.02 ) (Benefit) related to environmental
liability estimates (Q3) (0.02 ) (Benefit) of lower-than-planned
effective income tax rate (Q2, Q3, Q4) (0.05 )
Diluted EPS from Gilroy Foods &
Flavors operations, reclassified to discontinued operationsin Q4
FY10, but part of the company's FY10 EPS guidance (Q4)
0.04 Expense related to Garner, N.C., and Edina, Minn.
restructuring charges (Q3, Q4) 0.06 Expense related to impairment
charge on an existing facility (Q4) 0.05 Expense related to tax
credit transaction related to Delhi, La. sweet potato facility (Q4)
0.02 Rounding included in above items (0.01 )
Diluted EPS
adjusted for items impacting comparability $ 1.74
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