June 19, 2009

ConAgra Food Inc. (CAG) said Thursday (June 18) that it continues to believe it will be able to meet its long-term outlook of growth in annual per-share earnings despite the recent blast at its Slim Jim factory in Garner, North Carolina.

In a filing with the Securities and Exchange Commission, the packaged food company said it believes it will be able to meet the long-term outlook of 8 percent to 10 percent growth in annual per-share earnings from continuing operations, excluding some items.

The Garner plant produces Slim Jim beef jerky products, and the company said it has continued supplying the products from existing inventory stocks, although at reduced levels.

ConAgra said it expects new third-party producers to provide the products on an interim basis within four to six weeks. As a result, the company projects that it will have access to a combined production base needed to service the business during August 2009.

"Although service disruptions are likely during the current fiscal quarter, the company expects for the business to achieve acceptable service levels during the second quarter of fiscal 2010 and also expects that the accident will have no material impact on long term brand dynamics," the filing said.

The explosion at the plant, near Raleigh, killed three employees on Tuesday. Federal authorities said a natural gas leak caused the explosion.