June 29, 2006

ConAgra's 4th-quarter profit rises
 

Packaged food company ConAgra Foods Inc on Wednesday (Jun 28) posted a 6.6 percent rise in quarterly profit as it cut costs, divested businesses, and beefed up its marketing efforts. 

The company expects to meet profit forecast for the fiscal year that began in late May, but earnings in the current quarter would likely be down from a year earlier.

Gary Rodkin CEO of ConAgra, who took over last year, is making sweeping changes.

Besides boosting marketing efforts for its top brands and divesting some businesses, it has also cut dividends.

Rodkin said the company was moving in the right direction and could beat its full-year earnings forecast of US$1.12 to US$1.17 a share if the effects of recent changes could be realised quickly.

Net income rose to $108.5 million, in the fiscal fourth quarter that ended May 28, compared with $101.8 million, in the same period a year earlier.

The company sold its ham and seafood businesses during the quarter, and has announced plans to sell some of its meat brands.

Rodkin admits the results would be complex as the company works through the early stages of its restructuring, adding that he hopes future development would reflect the simplicity the company is aiming for.