--> -ve SX3P, NESN UNA & BN....
BFW 06/18 12:04 ConAgra Cuts Forecast for 4Q
BN 06/18 12:04 *CONAGRA CITES WEAK PROFITS FOR PRIVATE BRANDS SEGMENT :1AG US
BN 06/18 12:04 *CONAGRA SEES MEETING FY15 DEBT REPAYMENT GOALS :CAG US
BN 06/18 12:04 *CONAGRA CITES CONSUMER FOODS SEGMENT 7% QTRLY VOLUME DECLINE
BFW 06/18 12:03 *CAG NOW SEES 4Q ADJ. EPS 55C, SAW SLIGHTLY OVER 60C, EST. 62C
BN 06/18 12:03 *CAG NOW SEES 4Q ADJ. EPS 55C, SAW SLIGHTLY OVER 60C, EST. 62C
BN 06/18 12:02 *CONAGRA CUTS FORECAST
BFW 06/18 12:02 *CONAGRA CUTS FORECAST FOR 4Q
BN 06/18 12:01 *CONAGRA: COMMITMENT TO STRONG DIVIDEND REAFFIRMED :CAG US
BN 06/18 12:01 *CONAGRA SEES FY16-17 COMP EPS GROWTH HIGH SINGLE DIGIT RATE
BN 06/18 12:01 *CONAGRA CUTS FORECAST FOR 4Q
BN 06/18 12:01 *CONAGRA SEES FY15 COMP EPS GROWTH MID SINGLE DIGIT RATE
BN 06/18 12:01 *CONAGRA FOODS PLAN TO CONTINUE CURRENT $1/SHR ANNUAL DIVIDEND
BN 06/18 12:00 *CONAGRA SEES FY15 COMP EPS UP MID SINGLE DIGIT RATE
BN 06/18 12:00 *CONAGRA FOODS EST. $681M IMPAIRMENT CHARGE :1AG US
BN 06/18 12:00 *CONAGRA 4Q GAAP RESULTS INCL LARGE NON-CASH IMPAIRMENT CHARGES
BN 06/18 12:04 *CONAGRA CITES WEAK PROFITS FOR PRIVATE BRANDS SEGMENT :1AG US
BN 06/18 12:04 *CONAGRA SEES MEETING FY15 DEBT REPAYMENT GOALS :CAG US
BN 06/18 12:04 *CONAGRA CITES CONSUMER FOODS SEGMENT 7% QTRLY VOLUME DECLINE
BFW 06/18 12:03 *CAG NOW SEES 4Q ADJ. EPS 55C, SAW SLIGHTLY OVER 60C, EST. 62C
BN 06/18 12:03 *CAG NOW SEES 4Q ADJ. EPS 55C, SAW SLIGHTLY OVER 60C, EST. 62C
BN 06/18 12:02 *CONAGRA CUTS FORECAST
BFW 06/18 12:02 *CONAGRA CUTS FORECAST FOR 4Q
BN 06/18 12:01 *CONAGRA: COMMITMENT TO STRONG DIVIDEND REAFFIRMED :CAG US
BN 06/18 12:01 *CONAGRA SEES FY16-17 COMP EPS GROWTH HIGH SINGLE DIGIT RATE
BN 06/18 12:01 *CONAGRA CUTS FORECAST FOR 4Q
BN 06/18 12:01 *CONAGRA SEES FY15 COMP EPS GROWTH MID SINGLE DIGIT RATE
BN 06/18 12:01 *CONAGRA FOODS PLAN TO CONTINUE CURRENT $1/SHR ANNUAL DIVIDEND
BN 06/18 12:00 *CONAGRA SEES FY15 COMP EPS UP MID SINGLE DIGIT RATE
BN 06/18 12:00 *CONAGRA FOODS EST. $681M IMPAIRMENT CHARGE :1AG US
BN 06/18 12:00 *CONAGRA 4Q GAAP RESULTS INCL LARGE NON-CASH IMPAIRMENT CHARGES
ConAgra Foods Announces Fiscal 2014 EPS Below Plan, Reduces EPS Goals; Non-Cash Impairment Charges Recognized With No Impact on
2014-06-18 12:00:00.410 GMT
ConAgra Foods Announces Fiscal 2014 EPS Below Plan, Reduces EPS Goals;
Non-Cash Impairment Charges Recognized With No Impact on Comparable EPS;
Fiscal 2014 Debt Reduction Goal Exceeded; Commitment to Strong Dividend
Reaffirmed
* Soft Consumer Foods volumes reduce fiscal 2014 fourth-quarter EPS
* Fiscal 2014 fourth-quarter GAAP results include large non-cash impairment
charges
* Fiscal 2014 operating cash flow and debt reduction goals exceeded
* Fiscal 2015 comparable EPS growth expectations of mid-single-digit rate
* Fiscal 2016-2017 comparable EPS growth expectations of high-single-digit
rate
Business Wire
OMAHA, Neb. -- June 18, 2014
Today ConAgra Foods (NYSE:CAG) is announcing that comparable fiscal 2014
fourth quarter earnings per share (EPS) will be below prior expectations.
While all financial details are not yet finalized and the results in today’s
release are preliminary, diluted per share performance from continuing
operations for the fiscal 2014 fourth-quarter, which ended on May 25, 2014 and
will be reported in more detail on June 26, 2014, is expected to be
approximately $(0.76) as reported, reflecting significant non-cash impairment
charges as well as other items impacting comparability. After adjusting for
items impacting comparability, fiscal 2014 fourth-quarter EPS is expected to
be approximately $0.55; the company’s previous guidance anticipated comparable
EPS slightly in excess of $0.60 for the quarter. The lower-than-planned
comparable EPS is largely the result of a 7% quarterly volume decline for the
Consumer Foods segment, as well as weak profits for the Private Brands
segment. Items impacting comparability are detailed on page 5 of this
document.
Gary Rodkin, CEO of ConAgra Foods, commented, “We are disappointed with the
Consumer Foods volume performance, which negatively impacted comparable EPS.
As we have communicated, we are in the process of improving product mix and
promotion strategies in the Consumer Foods segment for better results and
greater effectiveness, and we expect our volume performance to improve in
fiscal 2015 as a result of this. Given the profit challenges in our Private
Brands segment, we are also focused on margin improvement initiatives to
offset the impact of pricing concessions. Even though our earnings are below
expectations, we exceeded our fiscal 2014 operating cash flow and debt
reduction targets.”
He continued, “Given the challenges we faced in fiscal 2014 with regard to
Consumer Foods volumes and Private Brands profitability, we are in the process
of gradually strengthening several areas of our company. We anticipate fiscal
2015 to be a year of stabilization and recovery that delivers mid-single-digit
comparable EPS growth. Comparable EPS growth in fiscal 2016 and 2017 should
accelerate to a high-single-digit rate as we benefit from stronger underlying
operations, generate sizeable productivity and administrative savings, and
continue to realize substantial synergies from the Ralcorp transaction.
Administrative savings are expected to play a growing role in future EPS
performance as we implement effectiveness and efficiency initiatives resulting
from significant work over the past fiscal year. Throughout this period of
anticipated stabilization, recovery, and eventual acceleration of EPS
performance, we expect to have the flexibility to invest in our business for
good long-term growth. We plan to continue our current $1.00 per share annual
dividend payment, and remain committed to a strong dividend policy in the
future.”
Quarterly operating profit for the Private Brands is expected to show a
comparable year-over-year decline of approximately $60 million. While the
majority of the profit shortfall was driven by pricing concessions previously
discussed, cost challenges associated with integration and business transition
also weighed on profit performance. The company remains highly confident in
the long-term growth opportunities for the Private Brands segment given the
company’s strong value-added capabilities that will be leveraged in the years
ahead, the fundamental appeal of private brands to consumers, and the
strategic importance of private brands to the retail customer base.
Based on the challenges in the Private Brands segment in fiscal 2014 and the
gradual nature of the anticipated recovery from fiscal 2014 earnings levels,
the company’s current profit projections for the Private Brands segment are
below original plans for the next several years, despite continued
expectations for achievement of strong cost-related synergies in line with
original plans.
These revised profit projections, as well as expectations for continued profit
challenges for some retail brands (primarily Chef Boyardee), have resulted in
an estimated $681 million of non-cash impairment charges in the fiscal 2014
fourth quarter. These non-cash charges, most of which relate to the Private
Brands segment, reduce the amount of goodwill and other intangibles on the
company’s balance sheet, and the resulting non-cash expenses will be treated
as items impacting comparability. The revised profit projections for the
applicable segments have been taken into consideration in the fiscal 2015-2017
EPS growth expectations cited earlier in this release.
The company notes that it generated in excess of $1.5 billion of cash from
operations and repaid approximately $600 million of debt during fiscal 2014,
exceeding targets for the fiscal year. The company is confident in its ability
to meet its fiscal year 2015 debt repayment goals as well. The company will
provide more financial and operating details on the current quarter
performance, and future EPS outlook, with its regularly scheduled earnings
release on June 26, 2014.
About ConAgra Foods
ConAgra Foods, Inc., (NYSE: CAG) is one of North America's largest packaged
food companies with branded and private branded food found in 99 percent of
America’s households, as well as a strong commercial foods business serving
restaurants and foodservice operations globally. Consumers can find recognized
brands such as Banquet®, Chef Boyardee®, Egg Beaters®, Healthy Choice®, Hebrew
National®, Hunt's®, Marie Callender's®, Orville Redenbacher's®, PAM®, Peter
Pan®, Reddi-wip®, Slim Jim®, Snack Pack® and many other ConAgra Foods brands,
along with food sold by ConAgra Foods under private brand labels, in grocery,
convenience, mass merchandise, club and drug stores. Additionally, ConAgra
Foods supplies frozen potato and sweet potato products as well as other
vegetable, spice, and bakery products to commercial and foodservice customers.
ConAgra Foods operates ReadySetEat.com, an interactive recipe website that
provides consumers with easy dinner recipes and more. For more information,
please visit us at www.conagrafoods.com.
Note on Forward-looking Statements
This press release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. These forward-looking
statements are based on management’s current expectations and assumptions and
are subject to certain risks, uncertainties and changes in circumstances that
could cause actual results to differ materially from potential results
discussed in the forward-looking statements. These risks and uncertainties
include, among other things: ConAgra Foods’ ability to realize the synergies
and benefits contemplated by the acquisition of Ralcorp Holdings, Inc.
(“Ralcorp”) and its ability to promptly and effectively integrate the business
of Ralcorp; ConAgra Foods’ ability to realize the synergies and benefits
contemplated by the recently formed joint venture combining the flour milling
businesses of ConAgra Foods, Cargill, Incorporated, and CHS Inc.; risks and
uncertainties associated with intangible assets, including any future goodwill
impairment charges; the availability and prices of raw materials, including
any negative effects caused by inflation or adverse weather conditions; the
effectiveness of ConAgra Foods’ product pricing, including product innovation,
any pricing actions and changes in promotional strategies; the ultimate
outcome of litigation, including the lead paint matter; future economic
circumstances; industry conditions; ConAgra Foods’ ability to execute its
operating and restructuring plans; the success of ConAgra Foods’ cost-savings
initiatives, and innovation and marketing investments; the competitive
environment; operating efficiencies; the ultimate impact of any ConAgra Foods
product recalls; access to capital; actions of governments and regulatory
factors affecting ConAgra Foods’ businesses, including the Patient Protection
and Affordable Care Act; the amount and timing of repurchases of ConAgra
Foods’ common stock and debt, if any; and other risks described in ConAgra
Foods’ reports filed with the Securities and Exchange Commission, including
its most recent annual report on Form 10-K and subsequent reports on Forms
10-Q and 8-K. Investors and security holders are cautioned not to place undue
reliance on these forward-looking statements, which speak only as of the date
they are made. ConAgra Foods disclaims any obligation to update or revise
statements contained in this press release to reflect future events or
circumstances or otherwise.
Regulation G Disclosure
Below is a reconciliation of preliminary Q4 FY14 diluted earnings per share
from continuing operations, adjusted for items impacting comparability.
Amounts may be impacted by rounding.
Q4 FY14 Diluted EPS from Continuing Operations
Q4 FY14
Diluted EPS from continuing operations $ (0.76 )
Items impacting comparability:
Net expense related to impairment charges, including the 1.47
impact on diluted share count
Net benefit related to sale of flour mills (0.13 )
Net expense related to restructuring, transaction, and 0.08
integration costs
Net benefit related to unusual tax matters (0.06 )
Net benefit related to unallocated mark-to-market impact of (0.02 )
derivatives
Net benefit related to historical legal matters (0.01 )
Net gain from sale of non-operating asset in the Commercial (0.01 )
Foods segment
Rounding (0.01 )
Diluted EPS, adjusted for items impacting comparability $ 0.55
Contact:
ConAgra Foods, Inc.
Media:
Teresa Paulsen, 402-240-5210
Vice President, Communication & External Relations
or
Analysts:
Chris Klinefelter, 402-240-4154
Vice President, Investor Relations
www.conagrafoods.com
-0- Jun/18/2014 12:00 GMT
2014-06-18 12:00:00.410 GMT
ConAgra Foods Announces Fiscal 2014 EPS Below Plan, Reduces EPS Goals;
Non-Cash Impairment Charges Recognized With No Impact on Comparable EPS;
Fiscal 2014 Debt Reduction Goal Exceeded; Commitment to Strong Dividend
Reaffirmed
* Soft Consumer Foods volumes reduce fiscal 2014 fourth-quarter EPS
* Fiscal 2014 fourth-quarter GAAP results include large non-cash impairment
charges
* Fiscal 2014 operating cash flow and debt reduction goals exceeded
* Fiscal 2015 comparable EPS growth expectations of mid-single-digit rate
* Fiscal 2016-2017 comparable EPS growth expectations of high-single-digit
rate
Business Wire
OMAHA, Neb. -- June 18, 2014
Today ConAgra Foods (NYSE:CAG) is announcing that comparable fiscal 2014
fourth quarter earnings per share (EPS) will be below prior expectations.
While all financial details are not yet finalized and the results in today’s
release are preliminary, diluted per share performance from continuing
operations for the fiscal 2014 fourth-quarter, which ended on May 25, 2014 and
will be reported in more detail on June 26, 2014, is expected to be
approximately $(0.76) as reported, reflecting significant non-cash impairment
charges as well as other items impacting comparability. After adjusting for
items impacting comparability, fiscal 2014 fourth-quarter EPS is expected to
be approximately $0.55; the company’s previous guidance anticipated comparable
EPS slightly in excess of $0.60 for the quarter. The lower-than-planned
comparable EPS is largely the result of a 7% quarterly volume decline for the
Consumer Foods segment, as well as weak profits for the Private Brands
segment. Items impacting comparability are detailed on page 5 of this
document.
Gary Rodkin, CEO of ConAgra Foods, commented, “We are disappointed with the
Consumer Foods volume performance, which negatively impacted comparable EPS.
As we have communicated, we are in the process of improving product mix and
promotion strategies in the Consumer Foods segment for better results and
greater effectiveness, and we expect our volume performance to improve in
fiscal 2015 as a result of this. Given the profit challenges in our Private
Brands segment, we are also focused on margin improvement initiatives to
offset the impact of pricing concessions. Even though our earnings are below
expectations, we exceeded our fiscal 2014 operating cash flow and debt
reduction targets.”
He continued, “Given the challenges we faced in fiscal 2014 with regard to
Consumer Foods volumes and Private Brands profitability, we are in the process
of gradually strengthening several areas of our company. We anticipate fiscal
2015 to be a year of stabilization and recovery that delivers mid-single-digit
comparable EPS growth. Comparable EPS growth in fiscal 2016 and 2017 should
accelerate to a high-single-digit rate as we benefit from stronger underlying
operations, generate sizeable productivity and administrative savings, and
continue to realize substantial synergies from the Ralcorp transaction.
Administrative savings are expected to play a growing role in future EPS
performance as we implement effectiveness and efficiency initiatives resulting
from significant work over the past fiscal year. Throughout this period of
anticipated stabilization, recovery, and eventual acceleration of EPS
performance, we expect to have the flexibility to invest in our business for
good long-term growth. We plan to continue our current $1.00 per share annual
dividend payment, and remain committed to a strong dividend policy in the
future.”
Quarterly operating profit for the Private Brands is expected to show a
comparable year-over-year decline of approximately $60 million. While the
majority of the profit shortfall was driven by pricing concessions previously
discussed, cost challenges associated with integration and business transition
also weighed on profit performance. The company remains highly confident in
the long-term growth opportunities for the Private Brands segment given the
company’s strong value-added capabilities that will be leveraged in the years
ahead, the fundamental appeal of private brands to consumers, and the
strategic importance of private brands to the retail customer base.
Based on the challenges in the Private Brands segment in fiscal 2014 and the
gradual nature of the anticipated recovery from fiscal 2014 earnings levels,
the company’s current profit projections for the Private Brands segment are
below original plans for the next several years, despite continued
expectations for achievement of strong cost-related synergies in line with
original plans.
These revised profit projections, as well as expectations for continued profit
challenges for some retail brands (primarily Chef Boyardee), have resulted in
an estimated $681 million of non-cash impairment charges in the fiscal 2014
fourth quarter. These non-cash charges, most of which relate to the Private
Brands segment, reduce the amount of goodwill and other intangibles on the
company’s balance sheet, and the resulting non-cash expenses will be treated
as items impacting comparability. The revised profit projections for the
applicable segments have been taken into consideration in the fiscal 2015-2017
EPS growth expectations cited earlier in this release.
The company notes that it generated in excess of $1.5 billion of cash from
operations and repaid approximately $600 million of debt during fiscal 2014,
exceeding targets for the fiscal year. The company is confident in its ability
to meet its fiscal year 2015 debt repayment goals as well. The company will
provide more financial and operating details on the current quarter
performance, and future EPS outlook, with its regularly scheduled earnings
release on June 26, 2014.
About ConAgra Foods
ConAgra Foods, Inc., (NYSE: CAG) is one of North America's largest packaged
food companies with branded and private branded food found in 99 percent of
America’s households, as well as a strong commercial foods business serving
restaurants and foodservice operations globally. Consumers can find recognized
brands such as Banquet®, Chef Boyardee®, Egg Beaters®, Healthy Choice®, Hebrew
National®, Hunt's®, Marie Callender's®, Orville Redenbacher's®, PAM®, Peter
Pan®, Reddi-wip®, Slim Jim®, Snack Pack® and many other ConAgra Foods brands,
along with food sold by ConAgra Foods under private brand labels, in grocery,
convenience, mass merchandise, club and drug stores. Additionally, ConAgra
Foods supplies frozen potato and sweet potato products as well as other
vegetable, spice, and bakery products to commercial and foodservice customers.
ConAgra Foods operates ReadySetEat.com, an interactive recipe website that
provides consumers with easy dinner recipes and more. For more information,
please visit us at www.conagrafoods.com.
Note on Forward-looking Statements
This press release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. These forward-looking
statements are based on management’s current expectations and assumptions and
are subject to certain risks, uncertainties and changes in circumstances that
could cause actual results to differ materially from potential results
discussed in the forward-looking statements. These risks and uncertainties
include, among other things: ConAgra Foods’ ability to realize the synergies
and benefits contemplated by the acquisition of Ralcorp Holdings, Inc.
(“Ralcorp”) and its ability to promptly and effectively integrate the business
of Ralcorp; ConAgra Foods’ ability to realize the synergies and benefits
contemplated by the recently formed joint venture combining the flour milling
businesses of ConAgra Foods, Cargill, Incorporated, and CHS Inc.; risks and
uncertainties associated with intangible assets, including any future goodwill
impairment charges; the availability and prices of raw materials, including
any negative effects caused by inflation or adverse weather conditions; the
effectiveness of ConAgra Foods’ product pricing, including product innovation,
any pricing actions and changes in promotional strategies; the ultimate
outcome of litigation, including the lead paint matter; future economic
circumstances; industry conditions; ConAgra Foods’ ability to execute its
operating and restructuring plans; the success of ConAgra Foods’ cost-savings
initiatives, and innovation and marketing investments; the competitive
environment; operating efficiencies; the ultimate impact of any ConAgra Foods
product recalls; access to capital; actions of governments and regulatory
factors affecting ConAgra Foods’ businesses, including the Patient Protection
and Affordable Care Act; the amount and timing of repurchases of ConAgra
Foods’ common stock and debt, if any; and other risks described in ConAgra
Foods’ reports filed with the Securities and Exchange Commission, including
its most recent annual report on Form 10-K and subsequent reports on Forms
10-Q and 8-K. Investors and security holders are cautioned not to place undue
reliance on these forward-looking statements, which speak only as of the date
they are made. ConAgra Foods disclaims any obligation to update or revise
statements contained in this press release to reflect future events or
circumstances or otherwise.
Regulation G Disclosure
Below is a reconciliation of preliminary Q4 FY14 diluted earnings per share
from continuing operations, adjusted for items impacting comparability.
Amounts may be impacted by rounding.
Q4 FY14 Diluted EPS from Continuing Operations
Q4 FY14
Diluted EPS from continuing operations $ (0.76 )
Items impacting comparability:
Net expense related to impairment charges, including the 1.47
impact on diluted share count
Net benefit related to sale of flour mills (0.13 )
Net expense related to restructuring, transaction, and 0.08
integration costs
Net benefit related to unusual tax matters (0.06 )
Net benefit related to unallocated mark-to-market impact of (0.02 )
derivatives
Net benefit related to historical legal matters (0.01 )
Net gain from sale of non-operating asset in the Commercial (0.01 )
Foods segment
Rounding (0.01 )
Diluted EPS, adjusted for items impacting comparability $ 0.55
Contact:
ConAgra Foods, Inc.
Media:
Teresa Paulsen, 402-240-5210
Vice President, Communication & External Relations
or
Analysts:
Chris Klinefelter, 402-240-4154
Vice President, Investor Relations
www.conagrafoods.com
-0- Jun/18/2014 12:00 GMT