June 10, 2005

ConAgra restructures meat-processing division
 

ConAgra Foods announced "several significant personnel changes" to the management team at its packaged meats operations, in an attempt, it said, to reduce further losses.

Higher pork and beef costs and lower sales prices had lowered the profit forecast for the fiscal fourth quarter that ended on May 29.

By cutting 1,000 jobs from its total work force of 37,000, ConAgra forecasts it could save about $100 million annually. The company will also merge its packaged meats and deli operations.

The company expects the changes-along with better pricing management, cost-cutting programs and stock reductions-to improve its packaged meat operations over time.

Earlier in March, the company had forecast that fourth quarter earnings will be higher than Q3's 32-cents a share. The contribution from the packaged meats operations in the fourth quarter will be about US$0.10 a share lower than expected.