030326 ConAgra Issues 2003 Earnings Warning

Omaha, NE - ConAgra Foods Inc., the nation's second-largest food company, warned Thursday that its earnings for fiscal 2003 may be lower than earlier projected.

The company said it now expects earnings of $1.57 to $1.60 a share for the year ending May 25, rather than the $1.60 a share projected at the beginning of the fiscal year as it sold its fresh beef and pork business.

Full-year results will include about 3 cents a share in expenses related to the September sale of the red meat business, ConAgra said.

Analysts surveyed by Thomson First Call had a consensus for earnings of $1.63 per share for the year.

ConAgra forecast earnings of about 30 cents a share for the third quarter that ends Feb. 23, while analysts expected 36 cents per share. Results will be released March 27.

While its chicken processing operations have reported weak markets and lower volumes, the Omaha-based company said its packaged foods and agriculture products divisions have shown improvements for the year and are expected to have stronger fourth quarters than third quarters.

ConAgra projected earnings per share of 40 cents to 43 cents for the fourth quarter. Analysts expected 38 cents a share.

With sales of about $27 billion a year, ConAgra is second to Kraft Foods as the nation's largest food company. Its brand names include Hunt's, Healthy Choice, Banquet, Armour, La Choy, Peter Pan and Swiss Miss. ConAgra also is the nation's leading food service company.

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