ConAgra Foods Reports Fourth-Quarter Results; Focuses on Efficiency Initiatives for Fiscal 2006.

Business Wire › June 30, 2005

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ConAgra Foods Reports Fourth-Quarter Results; Focuses on Efficiency Initiatives for Fiscal 2006.

OMAHA, Neb. -- ConAgra Foods Inc. (NYSE:CAG):

FOURTH-QUARTER FISCAL 2005 OVERVIEW:

--Fourth-quarter fiscal 2005 diluted EPS was $0.20.

--The $0.20 includes $0.06 of expense from items impacting comparability, primarily severance expense related to a previously announced headcount reduction program.

--Fourth-quarter fiscal 2005 sales were $3.7 billion, down 4% versus last year due to the estimated impact of an additional week in the same period a year ago. Excluding the benefit of an extra week last year, sales increased 4% in the fourth quarter.

--While several operations posted solid year-over-year profit growth, weak results from the packaged meats operations negatively impacted performance for the Retail Products and Foodservice Products segments.

--The company is focused on efficiency initiatives in three specific areas: 1) SKU reduction, 2) headcount and general and administrative expense reduction, and 3) improvement in manufacturing capacity utilization and plant productivity. All of these programs are geared to improve profit margins.

Note: Year-Over-Year Comparability:

Several items impact year-over-year comparisons of sales, operating profit, and EPS, including the estimated benefit of an additional week in the fourth quarter of fiscal 2004 and the full fiscal year 2004, expenses related to the headcount reduction in the fourth quarter of fiscal 2005, costs associated with implementing efficiency initiatives in fiscal 2004 and fiscal 2005, the impact of prior year contribution from operations the company no longer owns, and other items. Comparable year-over-year changes in sales and operating profits for the fourth quarter and the fiscal year reflecting these factors are summarized in tables toward the end of this release.

ConAgra Foods Inc. (NYSE:CAG), one of North America's leading packaged food companies, today reported results for the fiscal 2005 fourth quarter ended May 29, 2005. Sales for the quarter were $3.7 billion, down 4% versus last year; on a comparable basis, cur...

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