ConAgra Foods Reaffirms Fiscal 2009 EPS Guidance and Long-Term EPS Growth Expectations
ConAgra Foods expects fiscal 2009 EPS of slightly above $1.50, with more earnings expected to be generated in the company’s fiscal fourth quarter (March, April, May) than the fiscal third quarter, in which it is currently operating. This is a reaffirmation of previously communicated EPS expectations for fiscal 2009.
18/02/09 ConAgra Foods, Inc., will update the Consumer Analyst Group of New York on the company’s progress and outlook at that group’s annual conference in Boca Raton, Fla. ConAgra Foods CEO Gary Rodkin, Consumer Foods President André Hawaux, and Chief Financial Officer John Gehring will discuss key strategic priorities and share the company’s current financial outlook.
Regarding the near-term outlook (EPS amounts refer to earnings per share from continuing operations, excluding items impacting comparability):
• ConAgra Foods expects fiscal 2009 EPS of slightly above $1.50, with more earnings expected to be generated in the company’s fiscal fourth quarter (March, April, May) than the fiscal third quarter, in which it is currently operating. This is a reaffirmation of previously communicated EPS expectations for fiscal 2009.
• Regarding projections for fiscal 2010, the company expects EPS growth over fiscal 2009, and will provide more details when it has completed its plans and has more fully assessed the impacts of changing input costs and economic conditions. The company expects improved Consumer Foods operating profit in fiscal 2010 due to moderating input cost inflation, anticipated benefits from its offering of brands and products that appeal to value-conscious consumers, and new product introductions.
Regarding the long-term outlook (EPS amounts refer to earnings per share from continuing operations, excluding items impacting comparability):
• The company expects annual EPS growth of 8 percent to 10 percent over the long term.
• Return on invested capital is expected to range from 12 percent to 13 percent over the long term.
Rodkin and Hawaux will detail the company’s strategic priorities, a significant rejuvenation of the company’s frozen foods business, and new products that leverage the company’s strengths in the convenient meals and snacking categories. The product innovations are based on in-depth research about consumer preferences and needs, and reflect the company’s emphasis on nutrition, convenience, value, and taste. Progressive and innovative marketing campaigns will support these innovations.
“We continue to bring meaningful innovation and improve our marketing efforts in ways that we believe will strengthen our brand portfolio for the long term,” Rodkin said. “While economic conditions are difficult right now, we are confident that our refined strategic focus, the new items we are bringing to market, the value orientation of our portfolio, and our cost-saving programs will allow us to generate strong profitability. We remain committed to sustainable profitable growth and look forward to discussing our future progress.”