ConAgra Foods Reaffirms Fiscal 2010 EPS Guidance

The company announced that its Board of Directors has approved a $500 million share repurchase authorization with no expiration date; this reflects the company's strong cash position and positive cash flow outlook.

17 Feb 2010 --- ConAgra Foods, Inc., has updated the Consumer Analyst Group of New York (CAGNY) on the company's progress and outlook at the CAGNY annual conference in Boca Raton, Fla. ConAgra Foods CEO Gary Rodkin, Consumer Foods President André Hawaux, and Executive Vice President and Chief Financial Officer John Gehring will discuss key strategic priorities and share the company's current financial outlook.

"We are excited about the momentum under way at ConAgra Foods," Rodkin said. "We made great progress over the last four years building the foundation for sustainable, profitable growth. ConAgra Foods has significant ongoing potential, based on the improvements we have made in our supply chain, sales execution, marketing, and innovation capabilities. The share repurchase program being announced demonstrates our confidence in our ability to generate strong amounts of cash and to continue successfully executing our initiatives. This is truly an exciting time for ConAgra Foods."

Regarding the financial goals that will be shared at the conference, the company expects the following:
• Fiscal 2010 EPS to approach $1.73; based on the company's performance for the fiscal year-to-date, the full-year goal of $1.73 suggests EPS approaching $0.83 in the second half of the fiscal year.
• Annual sales growth of 3 to 4% over the long term.
• Annual EPS growth of 8% to 10% over the long term.
• Return on Invested Capital to approach 13-14% over the long term.

EPS amounts above refer to diluted earnings per share from continuing operations, excluding items impacting comparability.

The company also announced that its Board of Directors has approved a $500 million share repurchase authorization with no expiration date; this reflects the company's strong cash position and positive cash flow outlook. The company plans to repurchase its shares periodically, depending on market conditions and other factors, and may do so in the open market or through privately negotiated transactions. The company expects this to be a multi-year program.

Rodkin detailed the company's improvements in culture, portfolio, marketing, innovation, supply chain, and customer focus, contrasting today's ConAgra Foods with the company of four years ago. He'll also provide direction on the company's next phase, summarizing strategic priorities and plans to capitalize on the strong momentum. Hawaux will emphasize the significantly improved execution taking place in the Consumer Foods segment, focusing on customer programs and supply chain opportunities. The company expects to continue to generate substantial cost savings, primarily from supply chain efficiencies, and to use those savings to invest in marketing and innovation, and to drive earnings growth.