Omaha, NE - Food processor ConAgra Inc. said that a resumption of growth in its refrigerated foods business in the second quarter boosts the company's prospects for strong second-half results.
ConAgra, whose brands include Swiss Miss hot chocolate and Peter Pan peanut butter, reported earnings for its fiscal 1999 second quarter ended November 29 of $219 million or 46 cents a diluted share, about even with earnings of $217.2 million or 46 cents in the year-ago quarter. The earnings came in a penny higher than analysts estimates of 45 cents, according to First Call which tracks this data.
Fiscal second quarter sales slipped 2 percent to $6.40 billion from $6.55 billion in the same period last year.
Last year's results have been restated for acquisitions.
ConAgra said its refrigerated foods business resumed growth during the second quarter which more than offset a decline in its food ingredients business. The company said its plan for earnings gains this year includes further restoring growth of its refrigerated foods.
“Refrigerated Foods' second quarter upturn bolsters ConAgra's prospects for a strong second half of fiscal 1999,” said ConAgra chairman and chief executive Bruce Rohde in a statement.
The operating profit of ConAgra's refrigerated foods business rose 46 percent from a year ago. In the first quarter, this segment showed a 29 percent decline in operating profit.
The company's branded packaged meats business increased unit volumes and operating profit in fiscal 1999's second quarter and first half. An acquisition contributed to strong second quarter and first half operating profit growth in the cheese and tablespreads business.
Pork products, poultry products and Australia beef raised operating profit substantially in fiscal 1999's second quarter and first half. U.S. beef operating profit was down substantially in both periods, though the year-over- year profit decline in dollars narrowed considerably in the second quarter, the company said.
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