June 29, 2006

ConAgra's CEO says sale of meat business is on track

ConAgra Foods Inc (CAG) said Wednesday (Jun 28) the sale of its meat business is "very much on track".

"We are seeing a lot of interest in the business--really no surprises in the process--and we are continuing to manage the business well," said Chief Executive Gary Rodkin, during a conference call Wednesday.

Earlier, the Omaha, Nebraska, food company reported fiscal fourth-quarter earnings rose nearly 7 percent, helped by cost-cutting efforts.

In the latest period, commodity cost inflation of about US$40 million to US$50 million was roughly offset by productivity savings, said Chief Financial Officer Frank Sklarsky.

Looking ahead, the environment is "uncertain," Sklarsky said. However, he would expect inflation on a quarterly basis to be roughly similar to the latest period.