010376 ConAgra Meets Lower 3Q ExpectationsMarch 24, 2001Omaha, NE - ConAgra Foods's third-quarter earnings fell 31% from a year ago due to high energy costs, a slower economy, and increased marketing expennse -- but the results matched Wall Street's lowered expectations. The huge food company earned $99 million, or 19 cents a share, for the quarter ended Feb. 25 compared with $143.4 million, or 30 cents a share, a year ago. Sales rose 9% to $6.4 billion from $5.9 billion a year ago. Analysts had initially expected earnings for the quarter to be 44 cents a share, but in February the company announced that a faltering economy and high energy costs would result in third quarter earnings of between 18 cents and 20 cents. ConAgra is the nation's largest food service manufacturer and second largest retail food supplier. Its brand names include Healthy Choice, Hunt's tomato products, Banquet meals and Armour meats. For the first nine months of the year, net income increased 26% to $546 million, or $1.07 a share, up from $432.5 million, or 90 cents a share, a year ago. Excluding restructuring charges that hurt last year's results, earnings per share actually decreased 12%. Nine-month revenue rose to $20.5 billion from $19.3 billion a year ago. Sales of its packaged and refrigerated foods grew in the first nine months of the year, ConAgra said, but operating profit declined in the third quarter. Profits from agriculture sales like seed and fertilizer were hurt, the company said, because farmers are concerned about biotechnology issues and they have been hit by the impact high natural gas prices have on the cost of fertilizer. ConAgra chairman Bruce Rohde said the slowing economy and higher costs will continue to hurt the company's earnings through the fourth quarter.
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