Tags: ConAgra | consumer | foods | slump

ConAgra Cuts Forecast After Consumer Foods, Private Brands Slump

Wednesday, 18 Jun 2014 10:08 AM

ConAgra Foods Inc., the packaged-food company that owns Chef Boyardee and Healthy Choice, cut its earnings forecast amid slow sales of consumer foods and shrinking profit at its private-label business.

Fourth-quarter earnings will be about 55 cents a share, the Omaha, Nebraska-based company said today in a statement. ConAgra had previously predicted 60 cents for the period, which ended on May 25. The company plans to report the numbers in more detail on June 26.

Its consumer-foods business saw volume decline 7 percent, while profit was “weak” in its private-brands division. The company sells private-label products to supermarkets, drugstores and other retailers. Quarterly operating profit for that unit is expected to show a year-over-year decline of about $60 million, the company said.

“We are disappointed with the consumer foods volume performance,” Chief Executive Officer Gary Rodkin said in the statement. “We are in the process of improving product mix and promotion strategies.”

ConAgra shares fell 3.5 percent to $31.71 in early trading. The stock had declined 2.5 percent this year through yesterday.

The slump has resulted in a $681 million writedown last quarter, the company said.

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ConAgra Foods Inc., the packaged-food company that owns Chef Boyardee and Healthy Choice, cut its earnings forecast amid slow sales of consumer foods and shrinking profit at its private-label business.
ConAgra, consumer, foods, slump
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2014-08-18
Wednesday, 18 Jun 2014 10:08 AM
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