ConAgra Foods 4Q profit drops 13 percent

OMAHA, Neb. -- ConAgra Foods Inc. said Thursday that its fiscal fourth-quarter profit fell 13 percent as the prior-year period benefited from the sale of its commodity-trading unit.

The maker of Chef Boyardee, Hunt's tomato sauce and Reddi-wip earned $174.7 million, or 39 cents per share for the three months ended May 31. That's down from $201.3 million, or 41 cents per share, a year ago.

The prior-year period's results had 23 cents per share from discontinued operations, which include the commodity-trading unit's sale.

An extra week in the current quarter added about 3 cents per share to results, ConAgra said.

Income from continuing operations surged to $175.3 million, or 39 cents per share, from $85.4 million, or 17 cents per share.

Excluding net expense of 2 cents per share, income from continuing operations was 41 cents per share.

Revenue grew 8 percent to $3.3 billion from $3.07 billion on improved sales at its consumer-foods division. The quarter's extra week added about 7 percentage points to the unit's sales growth, ConAgra said.

Brands that reported double-digit sales growth included Healthy Choice, Banquet, Hebrew National and Peter Pan.

Analysts polled by Thomson Reuters, whose estimates normally exclude one-time items, predicted profit of 41 cents per share on sales of $3.33 billion.

At the commercial-foods segment, sales dipped 2 percent to $1.16 billion on lower flour prices.

CEO Gary Rodkin said in a statement that the Omaha, Neb., company has had to rely on existing Slim Jim inventories ever since an explosion this month at its Garner, N.C., plant killed three people, critically injured four and leveled part of the factory.

Locally ConAgra has operations in St. Charles, Naperville, and Glen Ellyn.

Shipments are at lower levels but ConAgra said it is continuing to work on building Slim Jim's production back up. While service disruptions are likely in the first quarter, the company said it expects to reach acceptable production levels by the second quarter and for there to be no long-term impact.

For the year, ConAgra's earnings climbed 5 percent to $978.4 million, or $2.15 per share, from $930.6 million, or $1.90 per share.

Income from continuing operations rose to $646.4 million, or $1.42 per share, from $518.9 million, or $1.06 per share.

Revenue improved to $12.73 billion from $11.56 billion.

ConAgra predicts 2010 adjusted earnings from continuing operations of $1.63 to $1.66 per share, which meets and slightly exceeds analysts' profit estimate of $1.63 per share.

Shares of ConAgra advanced 47 cents to $20.50 in morning trading.