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Fourth-quarter profits for ConAgra Foods were below Wall Street expectations because of one-time charges, one fewer week of sales and lower revenues from its commercial business, the company said Thursday.
Net income for the quarter ending May 31 was $90.6 million, or 20 cents per share, compared with $174.7 million, or 39 cents per share during the period last year, a decline of 48 percent.
The results include a number of one-time charges, including for moving the Omaha-based company’s Slim Jim snack operations from Garner, N.C., to Troy, Ohio, and for a manufacturing assessment that resulted in changes to a facility.
Each of those events resulted in a reduction in per-share earnings of 5 cents, ConAgra said.
Excluding such charges, earnings for comparable operations were 39 cents per share, 1 cent below what analysts polled by Reuters expected.
Sales for the quarter were $3.06 billion, down 5 percent from last year. Consumer brands, including Banquet frozen meals, Chef Boyardee pasta and Healthy Choice frozen dinners, accounted for 66 percent of sales. Analysts expected revenue of $3.18 billion.
Commercial sales to restaurants and other food-service outlets, including Lamb Weston frozen potatoes, were hurt by a poor potato crop last fall and one fewer week of sales compared to last year.
For the full year, profit declined 26 percent to $725.8 million, or $1.62 per share, from 978.4 million, or $2.15 per share last year.
Sales during the year were $12.1 billion, down 2.8 percent from $12.4 billion last year.
During the fourth quarter, ConAgra acquired snack bar maker Elan Nutrition for $105 million and frozen pie company American Pie for $140 million. It also sold the dehydrated vegtable operations of Gilroy Foods & Flavors to Olam International for $250 million.
During a conference call with investors, company officials hinted that more strategic acquisitions are in the works.
Over the next year, ConAgra chief executive Gary Rodkin said, the company expects earnings per share to grow 8 percent to 10 percent from the $1.74 in earnings per share recorded this year, not including the one-time charges.
Contact the writer:
444-1414, ross.boettcher@owh.com
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