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CONAGRA REPORTS RECORD FISCAL 1992 EARNINGS

 CONAGRA REPORTS RECORD FISCAL 1992 EARNINGS
 OMAHA, Neb., July 8 /PRNewswire/ -- ConAgra Inc. (NYSE: CAG) today


confirmed record earnings per share for fiscal year 1992 ended May 31, 1992, and reaffirmed its expectation for record earnings per share in fiscal 1993. The company reported preliminary fiscal 1992 fourth quarter and full year results and the fiscal 1993 outlook in an announcement on June 11, 1992.
 Fiscal 1992 Earnings Per Share Increased 6 Percent;
 Net Income Increased 12 Percent
 Fiscal year 1992 was the 12th straight year of record earnings per share for ConAgra. For the full year, earnings per share rose 6 percent to $1.50 from $1.42 the previous year. Net income was up 12 percent to $372.4 million from $332.0 million. Pretax earnings increased 6 percent to $587.7 million from $556.7 million. Net sales gained 5 percent to $21.22 billion from $20.18 billion.
 For fiscal 1992's fourth quarter, earnings per share were 43 cents, equalling 43 cents in the prior year's record fourth quarter. Net income was up 4 percent to $107.9 million from $103.9 million. Pretax earnings declined 5 percent to $157.9 million from $166.6 million. Net sales rose 12 percent to $5.57 billion from $4.99 billion.
 Charles M. Harper, ConAgra's chairman and chief executive officer, commented, "We're pleased with the fiscal 1992 increases of 6 percent in earnings per share and 12 percent in net income in light of the weak general economy and tough industry conditions for a number of our businesses. More important, fiscal 1992 was a successful year for investing in and building trend line earning power -- our company's focus for more than 15 years. Trend line earning power is the engine for ConAgra's continuing growth and premium long- term financial results."
 Strong Trend Line Earnings Growth in Fiscal 1992
 Harper continued, "We believe management's job is to build trend line earnings rather than focus on short-term reported results. For example, our most important financial objective is to average better than a 20-percent return on year-beginning common equity. ConAgra has averaged over 20 percent for 17 years; the five-year average is 22 percent, including 18 percent in fiscal 1992. Moreover, the 17-percent dividend increase in fiscal 1992 reflects our confidence that trend line earnings per share grew substantially more than earnings per share reported for the year."
 Philip B. Fletcher, ConAgra's president and chief operating officer, said, "We're looking forward to another year of record earnings in fiscal 1993. As announced earlier, we expect that first quarter earnings per share will show little change from the prior year's first quarter. The principal reason is much higher spending in this year's first quarter to support new product introductions. For example, if we held such spending to last year's level, we'd be looking for a significant first quarter earnings per share gain. Our plans indicate that earnings per share will be up in the last nine months of fiscal 1993." Prepared Foods Segment Operating Profit Up 2 Percent in Fiscal 1992
 In ConAgra's largest industry segment, Prepared Foods, operating profit increased 2 percent to $748.5 million in fiscal 1992 from $732.2 million in fiscal 1991. Sales increased 3 percent to $16.20 billion from $15.76 billion.
 Armour Swift-Eckrich and Hunt-Wesson registered good fourth quarter operating profit growth versus last year's fourth quarter. Beatrice Cheese's fourth quarter earnings were well ahead of last year. These three businesses joined ConAgra with the Beatrice Co. acquisition toward the end of last year's first quarter. Consequently, their fiscal 1992 profit contribution is not fully comparable with last year; however, all three businesses were ahead of their profit plans for fiscal 1992.
 Total poultry products earnings were up significantly in the fourth quarter and year as much stronger turkey products results more than offset lower earnings in the chicken products business which came under pressure from excessive supply. Beef processing earnings were down in fiscal 1992's fourth quarter and year. Pork results improved in both periods. Cattle feeding operations were unprofitable in fiscal 1992 and sharply below last year's profitable results. Cattle feeding was profitable in the fourth quarter and earnings were up substantially.
 During fiscal 1992, the consumer frozen foods business maintained respectable share and gross margin results in the midst of a fiercely competitive industry environment. However, the competitive situation and ConAgra's support of new products caused a major earnings drop in this business in fiscal 1992's fourth quarter and full year. Sooner or later, the industry will return to a normal competitive environment and more desirable margins.
 Earnings of the Golden Valley and potato processing businesses were down in fiscal 1992, but both enjoyed earnings gains in fiscal 1992's fourth quarter. Seafood operating profit was down in the fourth quarter and flat for the full year. Arrow Industries, a private label business acquired in fiscal 1992's third quarter, made a good contribution to fourth quarter and full year earnings.
 Prepared Foods segment sales were up only modestly in fiscal 1992 due in part to passing through lower raw materials costs as lower selling prices in several businesses, including, beef, pork and processed meats. Another factor was a different business mix. One Prepared Foods business was sold and two wholly owned Prepared Foods businesses became part of joint ventures with outside partners; sales of these relatively small businesses are no longer included in ConAgra's reported sales.
 Trading & Processing Segment Operating Profit Up 36 Percent
 in Fiscal 1992
 In ConAgra's Trading & Processing industry segment, operating profit increased 36 percent to $143.7 million in fiscal 1992 from $105.6 million in fiscal 1991. Sales increased 16 percent to $2.28 billion from $1.97 billion.
 The earnings gain was broadly based. Sources included good flour milling results, a rebound in the dry edible bean business and a contribution from businesses acquired during or after last year's fourth quarter. Grain merchandising earnings were up sharply in fiscal 1992. The specialty food ingredients and feed ingredients merchandising businesses also achieved strong earnings growth in fiscal 1992.
 The same businesses generally also experienced good earnings growth in fiscal 1992's fourth quarter. Earnings declined in the futures brokerage and European processing businesses in the fourth quarter and year. Agri-Products Segment Operating Profit Down 6 Percent in Fiscal 1992
 In ConAgra's Agri-Products industry segment, operating profit decreased 6 percent to $86.8 million in fiscal 1992 from $92.2 million in fiscal 1991. Sales increased 12 percent to $2.74 billion from $2.44 billion.
 The segment's largest business, crop protection chemicals, enjoyed excellent earnings growth in fiscal 1992. Specialty retailing earnings increased significantly. These gains were more than offset by a large downturn in the fertilizer business which is now structured for better results. In the fourth quarter, earnings were up in specialty retailing. Earnings were down in fertilizer and crop protection chemicals which have their seasonally slow December- February quarter reported in ConAgra's March-May fourth quarter.
 Total Operating Profit Up 5 Percent in Fiscal 1992
 ConAgra's total operating profit increased 5 percent to $979.0 million in fiscal 1992 from $930.0 million in fiscal 1991. Operating profit is profit before income taxes, general corporate expense and most interest expense.
 ConAgra's effective income tax rates for fiscal 1992's fourth quarter and year were 31.7 percent and 37.6 percent versus 36.6 percent and 40.4 percent in fiscal 1991. The lower tax rate this year is primarily due to the source of foreign earnings, higher export tax credits and higher equity in earnings of unconsolidated affiliates.
 Lower interest expense in fiscal 1992's fourth quarter mainly reflects lower interest rates and paying off a long-term debt issue with a relatively high interest rate. The Beatrice acquisition was the principal cause of higher interest expense, preferred dividends and weighted average shares outstanding in fiscal 1992 for the full year.
 Earnings per share figures reflect the three-for-two split of ConAgra's common stock effective Dec. 2, 1991. Fiscal 1991 fourth quarter and year results have been restated to incorporate results of Golden Valley Microwave Foods Inc. which merged with ConAgra on July 11, 1991. Fiscal 1991 industry segment results have been restated to eliminate the reporting of ConAgra's financial businesses as a separate segment and allocate their sales and operating profit to other segments.
 CONAGRA INC.
 Sales and earnings for fiscal 1992 fourth quarter (14 weeks) and
 fiscal 1991 fourth quarter (13 weeks) ended May 31, 1992 and
 May 26, 1991.
 In millions except per share amounts.
 FOURTH QUARTER (March-May)
 Percent
 Fiscal 1992 Fiscal 1991 Change
 Net sales $5,574.6 $4,986.6 11.8
 Costs and expenses
 Cost of goods sold 4,755.5 4,238.9 12.2
 Selling, administrative
 and general expenses 608.3 506.6 20.1
 Interest expense, net 57.8 79.4 (27.2)
 5,421.6 4,824.9 12.4
 Income before equity in earnings
 of affiliates and income taxes 153.0 161.7 (5.4)
 Equity in earnings of affiliates 4.9 4.9 0.0
 Income before income taxes 157.9 166.6 (5.2)
 Income taxes 50.0 62.7 (20.3)
 Net income 107.9 103.9 3.8
 Less preferred dividends 6.4 6.7 (4.5)
 Net income available
 for common stock $ 101.5 $ 97.2 4.4
 Earnings per common and
 common equivalent share $ 0.43 $ 0.43 0.0
 Weighted average number of
 common and common equivalent
 shares outstanding 235.0 228.5 2.8
 Sales and earnings for fiscal 1992 (53 weeks) and fiscal 1991
 (52 weeks) ended May 31, 1992 and May 26, 1991.
 In millions except per share amounts.
 YEAR (June-May)
 Percent
 Fiscal 1992 Fiscal 1991 Change
 Net sales $21,219.0 $20,177.4 5.2
 Costs and expenses
 Cost of goods sold 18,195.0 17,449.0 4.3
 Selling, administrative
 and general expenses 2,136.3 1,874.9 13.9
 Interest expense, net 317.5 309.8 2.5
 20,648.8 19,633.7 5.2
 Income before equity in earnings
 of affiliates and income taxes 570.2 543.7 4.9
 Equity in earnings of affiliates 17.5 13.0 34.6
 Income before income taxes 587.7 556.7 5.6
 Income taxes 215.3 224.7 (4.2)
 Net income 372.4 332.0 12.2
 Less preferred dividends 24.5 19.5 25.6
 Net income available
 for common stock $ 347.9 $ 312.5 11.3
 Earnings per common and
 common equivalent share $ 1.50 $ 1.42 5.6
 Weighted average number of
 common and common equivalent
 shares outstanding 231.9 220.6 5.1
 Weighted average shares outstanding and earnings per share reflect the three-for-two split of ConAgra common stock effective Dec. 2, 1991.
 Fiscal 1991 fourth quarter and full year results have been restated to reflect pooling of interests with Golden Valley Microwave Foods Inc. which merged with ConAgra on July 11, 1991.
 Operating results by industry segments for fiscal 1992 and fiscal
 1991 ended May 31, 1992 and May 26, 1991.
 Dollars in millions.
 YEAR (June-May)
 Percent
 Fiscal 1992 Fiscal 1991 Change
 Agri-Products
 Sales $ 2,736.0 $ 2,444.3 11.9
 Operating profit 86.8 92.2 (5.9)
 Trading & Processing
 Sales 2,281.7 1,973.1 15.6
 Operating profit 143.7 105.6 36.1
 Prepared Foods
 Sales 16,201.3 15,760.0 2.8
 Operating profit 748.5 732.2 2.2
 Total
 Sales 21,219.0 20,177.3 5.2
 Operating profit 979.0 930.0 5.3
 Interest expense 302.0 290.2 4.1
 General corporate expense 89.3 83.1 7.5
 Income before income taxes $ 587.7 $ 556.7 5.6
 Operating profit is profit after interest expense of ConAgra's financial businesses and short-term interest expense incurred to finance hedged inventories, and before other interest expense, general corporate expense and income taxes.
 Fiscal 1992 results have been restated for the Golden Valley pooling of interests and to eliminate the reporting of ConAgra's financial businesses as a separate segment. Results of the financial businesses, which represented less than 2 percent of total sales and operating profit in fiscal 1991, have been allocated to the other segments.
 -0- 7/8/92
 /CONTACT: Walt Casey of ConAgra, 402-595-4154/
 (CAG) CO: ConAgra Inc. ST: Nebraska IN: FOD SU: ERN


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