ConAgra 2Q income falls 15 percent
OMAHA — Omaha-based ConAgra Foods’ 15 percent drop in income during its second quarter was the result of, in large part, higher food costs, the company relayed. For the quarter ended Nov. 27, the company tallied income of $171.8 million, equal to 41c per share on the common stock, up 15 percent from $200.9 million, or 46c per share, during the same quarter of the previous year. Sales for the quarter were $3,403.9 million, up 8 percent from $3,147.5 million.
“We are pleased with our progress in both operating segments,” said Gary Rodkin, chief executive officer. “The quarter’s higher-than-planned comparable earnings per share reflects strong double-digit operating profit growth for our Commercial Foods segment, which has successfully overcome difficult operating conditions and implemented pricing. We are encouraged by our progress in fighting inflation in the Consumer Foods segment; volumes for that segment have performed largely as expected given ongoing price increases.
“The marketplace environment remains difficult due to continuing inflationary pressures and the impact of the current economy on consumers, so we are cautious about business conditions,” he added. “Our team is managing through these circumstances well by focusing on net price realization, productivity and appropriate brand support, and we are confident in our ability to deliver our overall eps and cash flow expectations for the fiscal year.”
The Consumer Foods segment had an operating profit of $256.3 million during the second quarter, down 8 percent from $278.5 million during the same quarter of the previous year. The segment had sales of $2,178.2 million, up 4 percent from $2,091.4 million.
The Commercial Foods segment had an operating profit of $160.8 million, up 26 percent from $127.4 million during the same quarter of the previous year. Sales for the segment were $1,225.7 million, up 16 percent from $1,056.1 million.
For the six months ended Nov. 27, the company as a whole had income of $257.1 million, or 62c per share, down 26 percent from $347.3 million, or 78c per share, during the same period of the previous year.
Sales for the segment were $6,475.9 million, up 9 percent from $5,951.8 million.