ConAgra earnings fell in 4th quarter

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Related tags: Profit, Generally accepted accounting principles

ConAgra Foods Inc., the large US food and agri-business group,
reported on June 28 that fiscal fourth-quarter earnings fell 38 per
cent, meeting...

ConAgra Foods Inc., the large US food and agri-business group, reported on June 28 that fiscal fourth-quarter earnings fell 38 per cent, meeting the high end of lowered estimates, as the lingering effects of rising costs and the slowing US economy hurt profits. ConAgra, which, last week, warned of earnings below expectations for the second straight quarter, said it had net income $121.4m, compared with income from continuing operations of $195.1m a year ago. After restructuring charges in last year's fourth quarter, ConAgra reported a net loss of $43.8m in the year-ago quarter. Operating profit fell 12 per cent to $405.3m from $462m a year earlier. Sales in the period rose 5 per cent to $6.4bn from $6.1bn one year ago. Combined sales at ConAgra's packaged and refrigerated foods business rose 5 per cent to $5.5bn. Total food business operating profit declined 10 per cent to $372m, as higher marketing costs and the effect of grocers lowering their inventory levels hurt profitability. "We faced a difficult business environment in the last half of fiscal 2001,"​ said Bruce Rohde, ConAgra's chairman and chief executive, in a statement. "But even in the midst of a challenging year, we aggressively laid the foundation for a stronger future by improving operating efficiency, introducing new products, and investing behind our market positions."Source: Reuters

Related topics: Market Trends

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