December 23, 2004

ConAgra's Q2 Profit Decline Due to Chicken Unit Sale, Higher Costs

The second-quarter profit for ConAgra Foods Inc fell 10 percent after the sale of its chicken business and a rise in ingredient costs. ConAgra is the third-largest food company in the US.

Net income fell to $242.3 million, or 47 cents a share, in the three months ended Nov. 28, from $270.1 million, or 51 cents, a year earlier, Omaha, Nebraska-based ConAgra said today in a statement. Revenue climbed 6 percent to $4.1 billion from $3.87 billion.

Excluding some items, including the chicken business, profit in the year-earlier quarter was $237.9 million, or 45 cents a share, the company said.

Kraft Foods Inc. is the biggest US food company by 2003 revenue, followed by Tyson Foods Inc.