Gary Rodkin, ConAgra Foods' chief executive officer, commented, "While we will continue to face a very challenging input cost environment for the near term, we do expect full year fiscal 2008 EPS to be higher than previously communicated due to the strong year-to-date EPS performance. I am very pleased with the momentum in our Food and Ingredients segment and how well our Trading and Merchandising segment is capitalizing on market opportunities."
More on the food and Ingredeitns segment:
More on the Food and Ingredients Segment (29% of year-to-date sales;Specialty potato, dehydrated vegetable, seasonings, blends, flavors, and milled grain products sold to foodservice and commercial channels worldwide)
During the quarter, sales for the Food and Ingredients segment were almost $1 billion, 14% ahead of last year. The increase reflects stronger prices and solid volumes for the Lamb Weston specialty potato and appetizer operations, as well as higher flour prices for ConAgra Mills necessitated by higher wheat input costs. Segment operating profit was $131 million for the quarter, 13% ahead of $117 million last year. Excluding an $18 million gain on the sale of noncore assets and an $8 million benefit from insurance proceeds in the year-ago period, comparable profits in the segment increased more than 40% in the current quarter, an outstanding performance. These results reflect Lamb Weston's export and appetizer sales growth, as well as growth for milled products due to expanded value-added product lines, better mix, and efficiency gains.
