ConAgra Foods, Inc. Reports Results For Fiscal 2015 Third Quarter

March 26, 2015

OMAHA, Neb.--(BUSINESS WIRE)--Mar. 26, 2015-- ConAgra Foods, Inc., (NYSE: CAG) one of North America’s leading food companies, today reported results for the fiscal 2015 third quarter ended Feb. 22, 2015. Diluted loss per share from continuing operations was $(2.23) for the fiscal third quarter 2015, due to a significant impairment charge, vs. diluted EPS of $0.52 as reported for the fiscal 2014 third quarter. After adjusting for items impacting comparability, comparable diluted EPS was $0.59 this quarter and $0.62 in the year-ago period.

Fiscal 2015 Third-quarter Highlights (% cited vs. year-ago period amounts, where applicable):

  • Diluted EPS from continuing operations posted a loss of $(2.23) per share as reported, due to significant non-cash impairment charges, vs. $0.52 a year ago. After adjusting for items impacting comparability, diluted EPS of $0.59 this quarter was ahead of expectations and below year-ago comparable diluted EPS of $0.62.
  • Consumer Foods posted flat volume, and comparable segment operating profit increased.
  • Commercial Foods sales and comparable operating profit grew as the segment posted good domestic results for Lamb Weston potato operations and good overall efficiencies.
  • Private Brands comparable profits were substantially below year-ago amounts due to a continued competitive bidding environment and execution shortfalls. Private Brands comparable profits are expected to improve in fiscal 2016 and beyond due to execution-related initiatives being implemented.
  • The company recognized pre-tax noncash impairment charges of approximately $1.3 billion, writing down Private Brands goodwill and other intangible assets. This amount is identified as an item impacting comparability.
  • Due to the fiscal third quarter EPS performance, the company has raised fiscal 2015 diluted EPS expectations to $2.15-$2.19, adjusted for items impacting comparability.
  • The company continues to expect to repay approximately $1 billion of debt this fiscal year. The company has repaid more than $600 million of debt so far this fiscal year, approximately $500 million of which reflects the utilization of proceeds related to the Ardent Mills transaction. Other capital allocation goals are unchanged.
  • As previously announced, Sean Connolly began his role as CEO-Elect on March 3, 2015 and becomes CEO on April 6, 2015. View full report here.