021231 ConAgra 2nd Quarter Earnings Up Slightly

Omaha, NE - ConAgra Foods Inc. reported a slight increase in second quarter profits.

ConAgra -- one of the nation's largest food companies, second only to Kraft Foods -- earned , 235.8 million, or 44 cents per share, for the quarter, up 1.8 percent from $231.6 million, or 44 cents per share, last year. The results were in line with Wall Street expectations.

Sales for the quarter fell 19 percent to $6 billion from $7.4 billion last year, reflecting the September sale of ConAgra's fresh beef and pork business.

ConAgra brands include La Choy, Peter Pan, Orville Redenbacher's, Armour, Banquet and Hunts.

"Our agenda to connect with consumers, improve overall execution with customers, and improve cash flow is producing the results we targeted," chief executive Bruce Rohde said. "This includes success with many of our key brands and products in the first half of fiscal 2003."

Rohde predicted earnings per share to reach about $1.60 for the fiscal year ending in May 2003.

Shares of ConAgra rose 8 cents to close Thursday at $24.75 on the New York Stock Exchange.

ConAgra reported sales of packaged foods for the quarter at $3.3 billion, essentially flat with last year.

Sales in its food ingredients increased to $480 million from $440 million last year, with operating profit declining 30 percent to $30 million from $43 million last year because of increased product costs and lower margins for certain seasonings and flavorings products.

Sales in meat processing were $1.1 billion and operating profits were $17 million, significantly lower than last year's figures due to the sale of its fresh beef and pork business.

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