ConAgra Foods Reports Fiscal 2006 Fourth-Quarter Results.OMAHA Omaha, city, United States Omaha (ō`məhä, –hô), city (1990 pop. 335,795), seat of Douglas co., E Nebr., on the west bank of the Missouri River; inc. 1857. , Neb. -- ConAgra Foods ConAgra Foods, Inc. (NYSE: CAG) is one of North America's largest packaged foods companies. ConAgra's products are available in supermarkets, as well as restaurants and food service establishments. Its headquarters are located in Omaha, Nebraska. Inc. (NYSE NYSE See: New York Stock Exchange :CAG CAG 1 Chronic atrophic gastritis 2 Coronary angiography, see there ): E[acute accent acute accent n. A mark (´) indicating: a. that a vowel is close or tense, as é in French été. b. that a vowel or syllable has a high or rising pitch, as in Chinese or Ancient Greek. c. ]--Solid Operating Performance; Three of Four Segments Post Operating Profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. Growth E[acute accent]--Fiscal 2007 EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. Outlook Increased Based on 8.7 Million Shares Repurchased This Quarter E[acute accent]ConAgra Foods Inc. (NYSE:CAG), one of North America's leading packaged food companies, today reported results for the fiscal 2006 fourth quarter ended May 28, 2006. Fourth-quarter fiscal 2006 diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of were $0.21, including $0.11 per share of net expense from items that impact comparability. Excluding the $0.11 per share of net expense from items that impact comparability, fourth-quarter diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. EPS was $0.32. Diluted EPS in the year-ago period was $0.20, which included $0.06 of net expense from items that impact comparability. E[acute accent]--Current quarter diluted EPS of $0.09 from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the includes $0.18 per share of net expense from items impacting comparability, primarily restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). and impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. charges; excluding those items, EPS from continuing operations was $0.27. E[acute accent]--Current quarter diluted EPS of $0.12 from discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. includes $0.07 per share of income from a gain on divestitures; excluding that item, EPS from discontinued operations was $0.05. E[acute accent]Gary Rodkin Gary Rodkin is the current CEO and President of ConAgra Foods, one of the largest food processing companies in North America. Rodkin was formerly the CEO and president of the North America division of PepsiCo from 1995 to 2005, and still is a special consultant through his exit , ConAgra Foods' chief executive officer, commented, "We had a solid finish to the fiscal year, but more importantly, we finalized See finalization. key aspects of our organizational restructuring and plant rationalization rationalization, in psychology: see defense mechanism. initiatives that will result in improved efficiencies." He continued, "As we communicated when we outlined our three-year plans The Three-Year Plan of Reconstructing the Economy (Polish: Trzyletni Plan Odbudowy Gospodarki) was a centralized plan created by the Polish communist government to rebuild Poland after the devastation of the Second World War. last March, we expect fiscal 2007 to show a more efficient cost structure and appropriately focused marketing investment. Our entire organization is very focused on achieving our fiscal 2007 financial goals." E[acute accent]During the quarter, the company began reporting its operations in four segments: Consumer Foods, Food and Ingredients, Trading and Merchandising merchandising Element of marketing concerned especially with the sale of goods and services to customers. One aspect of merchandising is advertising, which aims to capture the interest of the segment of the population most likely to buy the product. , and International Foods. Historical segment results have been adjusted to reflect the segment changes. E[acute accent]Consumer Foods Segment (57% of annual sales) E[acute accent]Branded consumer products sold in retail and foodservice The foodservice (or food service) industry (US English; catering industry in British English) encompasses those places, institutions, and companies responsible for any meal eaten away from home. channels; excludes international consumer operations. E[acute accent]During the quarter, sales for the Consumer Foods segment were $1.6 billion, roughly equal to the same period last year, reflecting pricing gains that mostly offset a 2% volume decline. E[acute accent]--Quarterly sales for the company's top 30 brands which, as a group, represent over 80% of total segment sales, increased 1% over year-ago amounts. Many of the company's priority brands posted year-over-year sales growth. E[acute accent]--Major brands posting sales growth include Chef Boyardee Ettore Boiardi (October 22, 1897 - June 21, 1985), better known as "Chef Boyardee," was an Italian-born chef who became famous for his eponymous brand of food products. History Boiardi was born in Piacenza, Italy. , Egg Beaters n. 1. a small device having one or usually two blades, each having several stiff oval wires at the tip. The blades are swirled or rotated for beating eggs or whipping cream. , Hebrew National, Hunt's, Marie Callender's, Orville Orville may refer to:
The Original and Extra-Creamy come in 7oz. and 14oz. cans. . E[acute accent]--Major brands posting sales declines include ACT II, Banquet A banquet is a large public meal or feast, complete with main courses and desserts. It usually serves a purpose, such as a charitable gathering, a ceremony, or a celebration. Sometimes a banquet consists of only desserts, but it is advisable to include main courses as well. , Healthy Choice, Slim Jim Slim Jim is a brand of dry meat snack manufactured by ConAgra Foods, Inc. They are popular in the United States, due in part to their unique texture, salty taste and "hip" marketing. More than 500 million are produced annually in at least 20 varieties,. , and Snack Pack. E[acute accent]--A more complete list of brand gains and declines is included in the question-and-answer supplement to this release, which is posted on the company's Web site. E[acute accent]Segment operating profit was $188 million for the quarter, 2% ahead of $184 million reported last year. Excluding restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. of $44 million in the current quarter and $28 million of severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when costs in the year-ago period, current quarter operating profit grew 9% despite an increase in marketing investment; the comparable profit growth reflects productivity gains and improved product mix. E[acute accent]Food and Ingredients Segment (28% of annual sales) E[acute accent]Specialty A contract under seal. A specialty is a written document that has been sealed and delivered and is given as security for the payment of a specifically indicated debt. potato, dehydrated de·hy·drate v. de·hy·drat·ed, de·hy·drat·ing, de·hy·drates v.tr. 1. To remove water from; make anhydrous. 2. To preserve by removing water from (vegetables, for example). vegetable vegetable, term originally used for any plant, now the name for many food plants, most of them annuals, and for their edible parts. There is no clear botanical distinction between vegetables and fruits. , seasonings, blends, flavors Flavors - Lisp with object-oriented features by D. Weinreb and D.A. Moon <moon@cambridge.apple.com>, 1980. ["Object-Oriented Programming with Flavors", D.A. Moon, SIGPLAN Notices 21(11):1-8 (OOPSLA '86) (Nov 1986)]. , and milled products sold to foodservice and commercial channels worldwide. E[acute accent]During the quarter, sales for the Food and Ingredients segment were $823 million, 6% ahead of last year, reflecting strong volume growth from Lamb Weston Weston, town (1990 pop. 10,200), Middlesex co., E Mass., W of Boston; settled c.1642, set off from Watertown and inc. 1713. The town is mainly residential. Regis College, the Weston College Geophysical Observatory, and many 18th-century buildings are there. specialty potato operations, improved volume, pricing, and mix for dehydrated garlic garlic: see onion. garlic Bulbous perennial plant (Allium sativum) of the lily family, native to central Asia and growing wild in Italy and southern France. The bulbs are used as a flavouring. , onion onion, plant of the family Liliaceae (lily family), of the same genus (Allium) as the chive (A. schoenoprasum), garlic (A. sativum), leek (A. porrum), and shallot (A. ascalonium). , and vegetable products, and increased flour flour, finely ground, usually sifted, meal of grain, such as wheat, rye, corn, rice, or buckwheat. Flour is also made from potatoes, peas, beans, peanuts, etc. Usually it refers to the finely ground and bolted (i.e. selling prices driven by higher input costs. E[acute accent]Segment operating profit was $93 million for the quarter, 22% ahead of $77 million reported last year, reflecting the strength of the potato and dehydrated products operations. There were restructuring charges of $5 million in the current quarter and $3 million of severance costs in the year-ago period. E[acute accent]Trading and Merchandising Segment (10% of annual sales) E[acute accent]Trading and merchandising agricultural commodities, fertilizer fertilizer, organic or inorganic material containing one or more of the nutrients—mainly nitrogen, phosphorus, and potassium, and other essential elements required for plant growth. , and energy worldwide. E[acute accent]During the quarter, sales for the Trading and Merchandising segment were $359 million, 16% below year-ago amounts; the decrease was driven mostly by lower volumes and selling prices for wholesale fertilizer operations as well as less favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. trading conditions for energy-related products. Segment operating profit was $36 million, 35% below year-ago amounts. The operating profit decrease reflects substantially lower profits from energy-related products and fertilizer, although profits from agricultural commodities such as livestock livestock Farm animals, with the exception of poultry. In Western countries the category encompasses primarily cattle, sheep, pigs, goats, horses, donkeys, and mules; other animals (e.g., buffalo, oxen, or camels) may predominate in other areas. , grains, and by-products by-products materials generated incidentally to the production of a principal product in an industry or industrial enterprise. In the meat industry by-products include blood, bone, fat, bristle, hair, wool, hide, skin, hoof, horn and offal products prepared in various ways for use increased. E[acute accent]International Foods Segment (5% of annual sales) E[acute accent]Branded consumer products sold internationally to retail channels. E[acute accent]During the quarter, sales for the International Foods segment were $156 million, roughly equal to the same period last year. E[acute accent]Segment operating profit was $23 million for the quarter, 14% ahead of $20 million reported last year, primarily reflecting a strong sales performance from mix improvements driven by popcorn and canned pasta While the only basic difference between these names is the shape of the pasta, each pasta is typically matched with a particular sauce based on cooking time, consistency, ability to hold sauce, ease of eating, etc. . Results for Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of and Mexico Mexico, city, Mexico Mexico or Mexico City, Span. Ciudad de México (Méjico), city (1990 pop. 8,236,960; 1991 met. area est. 20,899,000), central Mexico, capital and largest city of Mexico. , the largest of the company's international markets, showed year-over-year profit declines; however, the company made progress in Asian and Caribbean markets. E[acute accent]Other Items E[acute accent]--For the fourth quarter, corporate expense was $213 million. Current-quarter results include $30 million of expense related to restructuring charges, $26 million of expense related to early retirement of debt, and $41 million for a charge related to an impairment of a note receivable note receivable A debt due from borrowers and evidenced by a written promise of payment. Note receivable, an entry on the asset side of many corporate balance sheets, indicates the dollar amount of loans due to be repaid by borrowers. . Prior-year corporate expense of $124 million included $11 million of expense associated with headcount head count or head·count n. 1. The act of counting people in a particular group. 2. The number of people counted in this way. Noun 1. reduction. E[acute accent]--Equity investments posted a loss of $18 million for the fourth quarter, reflecting an impairment charge of $24 million, with no tax benefit, from a revision (programming) revision - A release of a piece of software which is not a major release or a bugfix, but only introduces small changes or new features. in the estimated fair value for an equity method investment. For the same quarter last year, equity investments posted earnings of $10 million and included no impairment charges. E[acute accent]--Net interest expense for the quarter was $54 million compared with $68 million last year. E[acute accent]--The effective tax rate for continuing operations for the quarter was 11%, reflecting the benefit of changes in estimates related to certain state and foreign tax matters, partially offset by the impact of non-deductible impairment charges. The company considers 36% to be the effective tax rate on continuing operations going forward. The EPS impact of the lower rate is cited as an item impacting comparability detailed at the end of this release. E[acute accent]Capital Items E[acute accent]--During the quarter, the company completed the divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). of its ham and seafood seafood Edible aquatic animals excluding mammals, but including both freshwater and ocean creatures. Seafood includes bony and cartilaginous fishes, crustaceans, mollusks, edible jellyfish, sea turtles, frogs, sea urchins, and sea cucumbers. businesses and received pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern proceeds of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $440 million. The gain was approximately $111 million pretax and approximately $35 million after tax. E[acute accent]--The company repurchased approximately 8.7 million shares of common stock during the fourth quarter at a total cost of approximately $197 million. E[acute accent]--Dividends paid totaled $142 million versus $141 million last year; this reflects the payment on March 1, 2006. E[acute accent]--The dividend action communicated on March 16, 2006, which lowered the dividend to $0.18 per share per quarter, was reflected in the June June: see month. 1, 2006 payment. E[acute accent]--At the end of the fourth quarter, interest-bearing Adj. 1. interest-bearing - of financial obligations on which interest is paid debt was approximately $3.6 billion, reflecting the redemption The liberation of an estate in real property from a mortgage. Redemption is the process by which land that has been mortgaged or pledged is bought back or reclaimed. It is accomplished through a payment of the debt owed or a fulfillment of the other conditions. of $250 million of the company's 7.875% senior debt due September September: see month. 2010; $500 million of that senior debt is still outstanding. The current portion of long-term debt Current Portion Of Long-Term Debt A portion of the balance sheet that represents the total amount of long-term debt that must be paid within the next year. The balance sheet has a liability section, which is broken down into long-term and current debt. reflects $400 million of 7.125% senior debt due October October: see month. 2026 that has been reclassified because of a put option that is exercisable by the holders of the debt from Aug. 1, 2006 to Sept. 1, 2006. Based on current market conditions, the company does not anticipate the holders to exercise the put option, and therefore expects to reclassify Verb 1. reclassify - classify anew, change the previous classification; "The zoologists had to reclassify the mollusks after they found new species" class, classify, sort out, assort, sort, separate - arrange or order by classes or categories; "How would you the $400 million debt back into senior long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. after Sept. 1, 2006 when the put option expires. E[acute accent]--For the quarter, total capital expenditures for property, plant, and equipment were $92 million compared with $102 million in the year-ago period. Depreciation and amortization expense from continuing operations was approximately $85 million for the quarter; this compares with a total of $77 million in the year-ago period. E[acute accent]Discontinued Operations E[acute accent]During the second half of fiscal 2006, ConAgra Foods announced the intended divestiture of its ham, seafood, packaged meats, and cheese operations. Those businesses, which represented aggregate annual revenue of approximately $2.8 billion, have been reclassified as discontinued operations. During the fourth quarter, the company completed the sale of its ham and seafood businesses. E[acute accent]Diluted earnings per share from discontinued operations were $0.12 for the quarter, which includes the gain on divestitures of $0.07 per share. Excluding that item, EPS from discontinued operations was $0.05 for the quarter. E[acute accent]Impact of Recent Share Repurchases Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. on Outlook E[acute accent]At its March 2006 Analyst and Investor Event, the company estimated that fiscal 2007 EPS from continuing operations would be in the range of $1.10 - $1.15. Those amounts did not reflect any EPS benefit from allocating divestiture proceeds towards share repurchases or debt reduction. Those amounts also do not reflect items that could impact comparability, including but not limited to restructuring and impairment charges and gains and losses on sales of assets; the timing of such events and therefore the impact on fiscal 2007 EPS cannot be estimated at this time. E[acute accent]During the fourth quarter of fiscal 2006, the company repurchased approximately $197 million of its stock; this is expected to add approximately $0.02 of annual benefit to the previously cited EPS goals. E[acute accent]Regarding divestitures yet to be completed, the company notes that the plans are proceeding as expected. To the extent that the company completes any significant transactions in fiscal 2007, it is uncertain whether the company would receive proceeds in time for any resulting share repurchases or debt reduction to significantly impact the EPS outlook for fiscal 2007. This reflects the customary delay between reaching an agreement and receiving proceeds, and the fact that the company may conduct its share repurchases at only certain times within the fiscal year. E[acute accent]Quarterly Earnings Patterns in Fiscal 2007 E[acute accent]The company expects to achieve its fiscal 2007 EPS target of $1.12 - $1.17 from continuing operations, which includes the $0.02 benefit discussed above and does not reflect items that could impact comparability. The company is not offering guidance with regard to contribution from discontinued operations, as those are expected to be sold during the fiscal year. The company has the following quarterly expectations for EPS from continuing operations, excluding items that impact comparability, in fiscal 2007: E[acute accent]--First-quarter fiscal 2007 EPS from continuing operations is expected to be in the range of $0.04 lower than comparable year-ago amounts. This primarily reflects the fact that the commodity trading and merchandising operations had an extremely strong performance in the first quarter of fiscal 2006, and the company does not plan to repeat this performance in the first quarter of fiscal 2007. E[acute accent]--The company expects year-over-year improvement in EPS from continuing operations in the second through fourth quarters, largely driven by progress with the cost-savings initiatives under way in general and administrative functions as well as the supply chain. E[acute accent]Other Reference E[acute accent]At its Analyst and Investor Event last March, the company announced plans to focus on increasing shareholder value by delivering more consistent, sustainable profit growth over time. These plans involve increasing investment behind the most promising brands, achieving significant cost savings in manufacturing and administrative functions, and divesting non-core operations. For more details on the plans, please see www.conagrafoods.com/investors, which references the Analyst and Investor Event on March 16, 2006. E[acute accent]In addition, the company has posted a question-and-answer supplement relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc this release at www.conagrafoods.com/investors. To view recent company news, please visit www.conagrafoods.com/media. E[acute accent]Major Items Affecting Fourth-Quarter Fiscal 2006 EPS Comparability E[acute accent]Included in the $0.21 diluted EPS for the fourth quarter of fiscal 2006 (EPS amounts rounded and after tax): E[acute accent]Classified within Continuing Operations: E[acute accent]--Expense of $0.09 per diluted share, or $79 million pretax, for restructuring charges related to programs designed to reduce the company's ongoing operating costs operating costs npl → gastos mpl operacionales . These are classified as $44 million of expense within the Consumer Foods segment, $5 million of expense within the Food and Ingredients segment, and $30 million of corporate expense. E[acute accent]--Expense of $0.05 per diluted share, or $41 million pretax, for a charge related to a note receivable, which is included in corporate expense. E[acute accent]--Expense of $0.05 per diluted share, or $24 million, resulting from asset impairment charges associated with an equity method investment, and classified within the results of equity method investments. There is no tax benefit related to these charges. E[acute accent]--Expense of $0.03 per diluted share, or $26 million pretax, for a charge related to early retirement of debt, which is included in corporate expense. E[acute accent]--Benefit of $0.04 per diluted share for a lower than normal tax rate. E[acute accent]Classified within Discontinued Operations: E[acute accent]--Gain of $0.07 per diluted share on divestitures of businesses included in discontinued operations. E[acute accent]Included in the $0.20 diluted EPS for the fourth quarter of fiscal 2005 (EPS amounts after tax): E[acute accent]--Expense of $0.05 per diluted share, or $43 million pretax, related to headcount reduction program. E[acute accent]--Expense of $0.01 per diluted share, related to change in estimated effective state income tax rates. E[acute accent]Discussion of Results E[acute accent]ConAgra Foods will host a conference call at 9 a.m. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT to discuss fourth-quarter results. Following the company's remarks, the call will include a question-and-answer session with the investment community. Domestic and international participants may access the conference call toll-free by dialing 1-877-447-8217 and 1-706-679-0415, respectively. No confirmation or pass code is needed. This conference call also can be accessed live on the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the at www.conagrafoods.com/investors. E[acute accent]A rebroadcast of the conference call will be available after 1 p.m. EDT. To access the digital replay, a conference ID number will be required. Domestic participants should dial 1-800-642-1687, and international participants should dial 1-706-645-9291 and enter conference ID 9609787. A rebroadcast also will be available on the company's Web site. E[acute accent]ConAgra Foods Inc. (NYSE:CAG) is one of North America's largest packaged food companies, serving grocery retailers, as well as restaurants and other foodservice establishments. Popular ConAgra Foods consumer brands include: Banquet, Chef Boyardee, Egg Beaters, Healthy Choice, Hebrew National, Hunt's, Marie Callender's, Orville Redenbacher's, PAM, Reddi-wip, and many others. E[acute accent]Note on Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. : E[acute accent]This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These statements are based on management's current views and assumptions of future events and financial performance and are subject to uncertainty and changes in circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or . Readers of this release should understand that these statements are not guarantees of performance or results. Many factors could affect the company's actual financial results and cause them to vary materially from the expectations contained in the forward-looking statements. These factors include, among other things, future economic circumstances, industry conditions, company performance and financial results, availability and prices of raw materials, product pricing, competitive environment and related market conditions, operating efficiencies, access to capital, actions of governments and regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. factors affecting the company's businesses and other risks described in the company's reports filed with the Securities and Exchange Commission. The company cautions readers not to place undue reliance on any forward-looking statements included in this release, which speak only as of the date made.
ConAgra Foods, Inc.
Segment Operating Results: CONTINUING OPERATIONS
In millions
FOURTH QUARTER
-------------------------------------
13 Weeks Ended 13 Weeks Ended
-------------- -------------- -------
Percent
May 28, 2006 May 29, 2005 Change
-------------- -------------- -------
SALES
-----
Consumer Foods $1,637.2 $1,642.4 (0.3)%
International Foods 155.5 155.1 0.3%
Food and Ingredients 823.0 774.0 6.3%
Trading and Merchandising 358.9 427.1 (16.0)%
-------------- --------------
Total 2,974.6 2,998.6 (0.8)%
-------------- --------------
OPERATING PROFIT
----------------
Consumer Foods $187.9 $183.4 2.5%
International Foods 22.5 19.7 14.2%
Food and Ingredients 93.4 76.6 21.9%
Trading and Merchandising 36.0 55.0 (34.5)%
-------------- --------------
Total operating profit for
segments 339.8 334.7 1.5%
Reconciliation of total operating
profit to income from continuing
operations before income taxes
and equity method investment
earnings (loss)
Items excluded from segment
operating profit:
General corporate expense (213.3) (123.8) 72.3%
Interest expense, net (54.4) (67.7) (19.6)%
-------------- --------------
Income from continuing operations
before income taxes and equity
method investment earnings
(loss) 72.1 143.2 (49.7)%
============== ==============
Segment operating profit excludes general corporate expense, equity
method investment earnings (loss) and net interest expense. Management
believes such amounts are not directly associated with segment
performance results for the period. Management believes the
presentation of total operating profit for segments facilitates
period-to-period comparison of results of segment operations.
ConAgra Foods, Inc.
Segment Operating Results: CONTINUING OPERATIONS
In millions
YEAR TO DATE
-------------------------------------
52 Weeks Ended 52 Weeks Ended
-------------- -------------- -------
Percent
May 28, 2006 May 29, 2005 Change
-------------- -------------- -------
SALES
-----
Consumer Foods $6,600.6 $6,715.4 (1.7)%
International Foods 604.4 578.2 4.5%
Food and Ingredients 3,188.6 2,985.8 6.8%
Trading and Merchandising 1,185.8 1,224.3 (3.1)%
-------------- --------------
Total 11,579.4 11,503.7 0.7%
-------------- --------------
OPERATING PROFIT
----------------
Consumer Foods $838.5 $944.4 (11.2)%
International Foods 62.3 62.7 (0.6)%
Food and Ingredients 358.4 305.9 17.2%
Trading and Merchandising 168.7 196.8 (14.3)%
-------------- --------------
Total operating profit for
segments 1,427.9 1,509.8 (5.4)%
Reconciliation of total operating
profit to income from continuing
operations before income taxes
and equity method investment
earnings (loss)
Items excluded from segment
operating profit:
General corporate expense (559.9) (402.2) 39.2%
Gain on sale of Pilgrim's
Pride Corporation common
stock 329.4 185.7 77.4%
Interest expense, net (246.6) (295.0) (16.4)%
-------------- --------------
Income from continuing operations
before income taxes and equity
method investment earnings
(loss) $950.8 $998.3 (4.8)%
============== ==============
Segment operating profit excludes general corporate expense, gain on
sale of Pilgrim's Pride Corporation common stock, equity method
investment earnings (loss) and net interest expense. Management
believes such amounts are not directly associated with segment
performance results for the period. Management believes the
presentation of total operating profit for segments facilitates
period-to-period comparison of results of segment operations.
ConAgra Foods, Inc.
Consolidated Statements of Earnings
In millions, except per share
amounts FOURTH QUARTER
-------------------------------------
13 Weeks Ended 13 Weeks Ended
-------------- -------------- -------
Percent
May 28, 2006 May 29, 2005 Change
-------------- -------------- -------
Net sales $2,974.6 $2,998.6 (0.8)%
Costs and expenses:
Cost of goods sold 2,275.0 2,313.8 (1.7)%
Selling, general and
administrative expenses 573.1 473.9 20.9%
Interest expense, net 54.4 67.7 (19.6)%
-------------- --------------
Income from continuing operations
before income taxes and equity
method investment earnings
(loss) 72.1 143.2 (49.7)%
Income tax expense 5.9 66.2 (91.1)%
Equity method investment earnings
(loss) (18.4) 10.0 NA
-------------- --------------
Income from continuing operations 47.8 87.0 (45.1)%
Income from discontinued
operations, net of tax 60.7 14.8 310.1%
-------------- --------------
Net income $108.5 $101.8 6.6%
============== ==============
Earnings per share - basic
Income from continuing operations $0.09 $0.17 (47.1)%
Income from discontinued
operations 0.12 0.03 300.0%
-------------- --------------
Net income $0.21 $0.20 5.0%
============== ==============
Weighted average shares
outstanding 516.8 517.3 (0.1)%
============== ==============
Earnings per share - diluted
Income from continuing operations $0.09 $0.17 (47.1)%
Income from discontinued
operations 0.12 0.03 300.0%
-------------- --------------
Net income $0.21 $0.20 5.0%
============== ==============
Weighted average share and share
equivalents outstanding 518.8 521.0 (0.4)%
============== ==============
ConAgra Foods, Inc.
Consolidated Statements of Earnings
In millions, except per share
amounts YEAR TO DATE
--------------------------------------
52 Weeks Ended 52 Weeks Ended
-------------- -------------- --------
Percent
May 28, 2006 May 29, 2005 Change
-------------- -------------- --------
Net sales $11,579.4 $11,503.7 0.7%
Costs and expenses:
Cost of goods sold 8,769.2 8,675.3 1.1%
Selling, general and
administrative expenses 1,942.2 1,720.8 12.9%
Interest expense, net 246.6 295.0 (16.4)%
Gain on sale of Pilgrim's
Pride Corporation common
stock 329.4 185.7 77.4%
-------------- --------------
Income from continuing
operations before income taxes
and equity method investment
earnings (loss) 950.8 998.3 (4.8)%
Income tax expense 308.0 408.0 (24.5)%
Equity method investment
earnings (loss) (49.6) (24.8) (100.0)%
-------------- --------------
Income from continuing
operations 593.2 565.5 4.9%
Income (loss) from discontinued
operations, net of tax (1.2) 76.0 NA
-------------- --------------
Net income $592.0 $641.5 (7.7)%
============== ==============
Earnings per share - basic
Income from continuing
operations $1.14 $1.09 4.5%
Income (loss) from discontinued
operations - 0.15 (100.0)%
-------------- --------------
Net income $1.14 $1.24 (8.0)%
============== ==============
Weighted average shares
outstanding 518.0 516.2 0.3%
============== ==============
Earnings per share - diluted
Income from continuing
operations $1.14 $1.09 4.5%
Income (loss) from discontinued
operations - 0.14 (100.0)%
-------------- --------------
Net income $1.14 $1.23 (7.3)%
============== ==============
Weighted average share and share
equivalents outstanding 520.1 520.2 0.0%
============== ==============
ConAgra Foods, Inc.
Consolidated Balance Sheets
In millions
May 28, 2006 May 29, 2005
------------ ------------
ASSETS
Current assets
Cash and cash equivalents $331.6 $207.6
Receivables, less allowance for doubtful
accounts of $27.8 and $30.1 1,180.9 1,260.8
Inventories 2,132.5 2,153.6
Prepaid expenses and other current assets 741.3 631.3
Current assets held for sale 256.3 521.5
------------ ------------
Total current assets 4,642.6 4,774.8
Property, plant and equipment, net 2,280.7 2,365.0
Goodwill 3,446.1 3,451.5
Brands, trademarks and other intangibles, net 799.5 801.0
Other assets 346.3 798.4
Noncurrent assets held for sale 496.6 852.1
------------ ------------
$12,011.8 $13,042.8
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Notes payable $10.0 $8.5
Current installments of long-term debt 421.1 117.3
Accounts payable 868.9 781.6
Advances on sales 103.2 149.6
Accrued payroll 310.9 269.7
Other accrued liabilities 1,248.0 1,247.4
Current liabilities held for sale 2.7 65.6
------------ ------------
Total current liabilities 2,964.8 2,639.7
Senior long-term debt, excluding current
installments 2,754.8 3,949.2
Subordinated debt 400.0 400.0
Other noncurrent liabilities 1,180.8 1,189.3
Noncurrent liabilities held for sale 3.2 5.4
Common stockholders' equity 4,708.2 4,859.2
------------ ------------
$12,011.8 $13,042.8
============ ============
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