As reported, diluted EPS from continuing operations was $0.50, a 2% increase over the $0.49 earned in the year-ago period.
Diluted EPS from continuing operations increased 16% after adjusting for $0.06 per diluted share of net benefit in the year-ago period from items impacting comparability.
Gary Rodkin, ConAgra Foods' chief executive officer, said, "We are pleased that fiscal third-quarter results demonstrate comparable EPS and segment operating profit growth, despite high input cost inflation and other challenging economic conditions. Sequential price/mix trends in our Consumer Foods segment are directionally improving as we expected. While inflationary pressures continue to build and difficult conditions persist, we expect our performance to continue to benefit from pricing actions under way, strong supply chain cost savings, and other profit-enhancing initiatives we have previously detailed. We are confident in our ability to post a low-single-digit rate of EPS growth over the comparable $1.74 earned last fiscal year."
Consumer Foods Segment (66% of third-quarter sales)
Branded and non-branded food sold in retail and foodservice channels.
The Consumer Foods segment posted sales of $2,085 million and operating profit of $263 million for the third quarter. Sales increased 2% as reported, reflecting flat organic volume and price/mix compared with a year ago, and approximately 2% benefit from acquisitions (net of divestitures).
- Brands posting sales growth for the quarter includedBanquet, DAVID, Healthy Choice, Hebrew National, Manwich, Marie Callender's, Peter Pan, Slim Jim, Wesson, and others.
- More brand details can be found in the Q&A document accompanying this release.
- Based on accelerating input cost inflation, the company has been implementing net pricing increases, which will be more apparent in future sales results.
Commercial Foods Segment (34% of third-quarter sales)
Specialty potato, milled grain products, and seasonings, blends, and flavors sold to foodservice and commercial channels worldwide.
Sales for the Commercial Foods Segment were $1,070 million, 7% above year-ago amounts. The sales increase reflects higher selling prices for the flour milling operations necessitated by higher wheat input costs, as well as volume growth for Lamb Weston specialty potato products.
Segment operating profit was $139 million, slightly below $143 million in the year-ago period as reported. After adjusting for $10 million of restructuring charges in the current quarter, comparable segment operating profit increased 5%.
Lamb Weston benefited from improved potato crop quality, and has pricing and efficiency initiatives under way to address overall margin pressure.
Flour milling profits increased from year-ago amounts due to favorable market conditions and effective margin management in a very volatile wheat market.
Information presented here from Conagra Foods was selected based on general relevance for the potato industry. We recommend to read the full financial report for complete information.
