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ConAgra Foods Inc. Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: March 31, 2012 01:24PM

ConAgra Foods Inc. (CAG) filed Quarterly Report for the period ended 2012-02-26. Conagra Foods has a market cap of $10.75 billion; its shares were traded at around $26.26 with a P/E ratio of 15 and P/S ratio of 0.9. The dividend yield of Conagra Foods stocks is 3.7%. Conagra Foods had an annual average earning growth of 12.6% over the past 5 years.



Highlight of Business Operations:

Diluted earnings per share in the third quarter of fiscal 2012 were $0.65. Diluted earnings per share in the third quarter of fiscal 2011 were $0.50 (including earnings of $0.52 per diluted share from continuing operations and a loss of $0.02 per diluted share from discontinued operations). Diluted earnings per share were $1.26 and $1.27 (including earnings of $1.29 per diluted share from continuing operations and a loss of $0.02 per diluted share from discontinued operations) in the first three quarters of fiscal 2012 and 2011, respectively. Several significant items affect the comparability of year-over-year results of continuing operations (see “Items Impacting Comparability” below).

Consumer Foods net sales for the third quarter of fiscal 2012 were $2.16 billion, an increase of $85 million, or 4%, compared to the third quarter of fiscal 2011. Consumer Foods net sales for the first three quarters of fiscal 2012 were $6.23 billion, an increase of $252 million, or 4%, compared to the first three quarters of fiscal 2011. Consumer Foods net sales for the third quarter of fiscal 2012 reflected a 4% increase from businesses acquired and a 5% increase from net pricing and mix, partially offset by 5% lower sales volume from existing businesses. Consumer Foods net sales for the first three quarters of fiscal 2012 reflected a 1% increase from businesses acquired and a 5% increase from net pricing and mix, partially offset by 2% lower sales volume from existing businesses. Increased pricing in the third quarter and first three quarters of fiscal 2012 was necessitated by increased commodity input costs. The increased pricing led to a slight reduction in volume.

Commercial Foods net sales were $1.22 billion for the third quarter of fiscal 2012, an increase of $147 million, or 14%, compared to the third quarter of fiscal 2011. Commercial Foods net sales were $3.62 billion for the first three quarters of fiscal 2012, an increase of $504 million, or 16% compared to the first three quarters of fiscal 2011. Commercial Foods net sales in the third quarter and first three quarters of fiscal 2012 reflected the pass-through of $48 million and $269 million, respectively, of higher wheat prices in the segment’s flour milling operations. Results for the third quarter of fiscal 2012 also reflected increased volume of approximately 6% and increased net pricing and mix of 9% in the segment’s Lamb Weston® specialty potato products business. Results for the first three quarters of fiscal 2012 also reflected higher sales volumes of approximately 4% and improved net pricing and mix of approximately 7% in our Lamb Weston® specialty potato products business.

In the third quarters of fiscal 2012 and 2011, our income tax expense was $107 million and $123 million, respectively. The effective tax rate (calculated as the ratio of income tax expense to pre-tax income from continuing operations, inclusive of equity method investment earnings) was approximately 28% and 35% for the third quarters of fiscal 2012 and 2011, respectively. In the first three quarters of fiscal 2012 and 2011, our income tax expense was $238 million and $291 million, respectively. The effective tax rate was approximately 31% and 34% for the first three quarters of fiscal 2012 and 2011, respectively. The lower effective tax rate for the third and first three quarters of fiscal 2012 reflected the non-taxable nature of the gain of $59 million, resulting from the remeasurement to fair value of our previously held noncontrolling equity interest in ATFL, in connection with our acquisition of a majority interest in that company.

Our diluted earnings per share in the third quarter of fiscal 2012 were $0.65. Diluted earnings per share in the third quarter of fiscal 2011 were $0.50 (including earnings of $0.52 per diluted share from continuing operations and a loss of $0.02 per diluted share from discontinued operations). Diluted earnings per share were $1.26 and $1.27 (including earnings of $1.29 per diluted share from continuing operations and a loss of $0.02 per diluted share from discontinued operations) in the first three quarters of fiscal 2012 and 2011, respectively.

Read the The complete Report



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