Conagra Foods Reports Strong EPS Growth and Improved Sales for Consumer Foods

ConAgra Foods, Inc., (NYSE: CAG) one of North America's leading packaged food companies, today reported results for the fiscal 2008 third quarter ended Feb. 24, 2008. Current-quarter diluted EPS from continuing operations was $0.63;items impacting comparability did not have a significant net effect on EPS. Prior-year diluted EPS from continuing operations of $0.37 included net expense of $0.07 from items impacting comparability. Items impacting comparability in the current and prior years are summarized toward the end of this release.

Gary Rodkin, chief executive officer of ConAgra Foods, commented, "Our Food &Ingredients segment had terrific results, and our Consumer Foods segment demonstrated top-line progress. Consumer Foods sales grew 8%, or 6% on a comparable basis, and pricing played a larger role in that segment's sales performance. I congratulate our team on the successes and improvements to date, and expect momentum to build as we go forward."

Statements regarding Conagra's Food and Ingredients Segment (30% 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 $1.0 billion, 24% ahead of last year. The increase was driven largely by higher wheat values in the milling operations (discussed below), as well as stronger prices and slightly increased volumes for the Lamb Weston specialty potato and appetizer operations. Segment operating profit was $144 million for the quarter, 33% ahead of year-ago amounts. Increases in values for wheat positions allowed the milling operations to manage through volatile wheat input costs and significantly increase profitability, as did higher flour prices necessitated by higher input costs. Segment profit growth also reflects Lamb Weston's export and appetizer sales growth.