-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Vjgoo+4PAd7GCE5Vc/v3YcQn0CQ3U23bD9CpwufExnjre2tZmSiCdPp1cuWft14s A9tIkotv41X8czH83HXc5A== 0000900440-05-000073.txt : 20050921 0000900440-05-000073.hdr.sgml : 20050921 20050921080335 ACCESSION NUMBER: 0000900440-05-000073 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20050921 ITEM INFORMATION: Results of Operations and Financial Condition FILED AS OF DATE: 20050921 DATE AS OF CHANGE: 20050921 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CONAGRA FOODS INC /DE/ CENTRAL INDEX KEY: 0000023217 STANDARD INDUSTRIAL CLASSIFICATION: FOOD & KINDRED PRODUCTS [2000] IRS NUMBER: 470248710 STATE OF INCORPORATION: DE FISCAL YEAR END: 0531 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-07275 FILM NUMBER: 051094758 BUSINESS ADDRESS: STREET 1: ONE CONAGRA DR CITY: OMAHA STATE: NE ZIP: 68102 BUSINESS PHONE: 4025954000 MAIL ADDRESS: STREET 1: ONE CONAGRA DRIVE CITY: OMAHA STATE: NE ZIP: 68102 FORMER COMPANY: FORMER CONFORMED NAME: CONAGRA INC /DE/ DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: NEBRASKA CONSOLIDATED MILLS CO DATE OF NAME CHANGE: 19721201 8-K 1 cag8k.txt UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 September 21, 2005 Date of report (Date of earliest event reported) ConAgra Foods, Inc. (Exact Name of Registrant as Specified in Its Charter) Delaware (State or Other Jurisdiction of Incorporation) 1-7275 47-0248710 (Commission File Number) (IRS Employer Identification No.) One ConAgra Drive Omaha, NE 68102 (Address of Principal Executive Offices) (Zip Code) (402) 595-4000 (Registrant's Telephone Number, Including Area Code) - ------------------------------------------------------------------------------- (Former Name or Former Address, if Changed Since Last Report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): |_| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |_| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |_| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Item 2.02. Results of Operations and Financial Condition ConAgra Foods, Inc. issued a press release and posted a Q&A document on the company's website on September 21, 2005 with earnings information on the company's first quarter ended August 28, 2005. The press release and related Q&A are furnished with this Form 8-K as exhibits 99.1 and 99.2, respectively. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. CONAGRA FOODS, INC. Date: September 21, 2005 By: /s/ Frank S. Sklarsky --------------------------------- Name: Frank S. Sklarsky Title: Executive Vice President, Chief Financial Officer EXHIBIT INDEX Exhibit Description Page No. 99.1 Press release dated September 21, 2005........................ 99.2 Questions and Answers......................................... EX-99.1 2 cagearnings.txt FOR IMMEDIATE RELEASE CONAGRA FOODS REPORTS SOLID FIRST-QUARTER RESULTS FIRST-QUARTER FISCAL 2006 OVERVIEW: o First-quarter fiscal 2006 diluted EPS was $0.68, reflecting a large gain from selling 15.4 million shares of Pilgrim's Pride Corporation common stock as well as a solid performance in several areas of the business. >> The $0.68 per diluted share includes a $0.40 per share gain from the sale of Pilgrim's Pride Corporation common stock, $0.04 per share of expense from asset impairment and plant closure costs, and $0.01 per share of earnings from discontinued operations. These items impacting comparability are summarized toward the end of this release. >> Prior-year earnings of $0.26 per diluted share included $0.02 per share of net expense related to implementing cost-saving initiatives. o New chief executive officer Gary Rodkin will join ConAgra Foods on Oct. 1. OMAHA, Neb., Sept. 21, 2005 -- ConAgra Foods Inc. (NYSE: CAG), one of North America's leading packaged food companies, today reported results for the fiscal 2006 first quarter ended Aug. 28, 2005. First-quarter diluted EPS was $0.68, and diluted EPS was $0.26 for the same period last year; the major items affecting comparability are summarized toward the end of this release. Sales for the quarter were $3.4 billion, slightly less than the same period last year. Bruce Rohde, chairman and chief executive officer of ConAgra Foods, commented, "Operating profitability for fiscal 2006 is off to a good start. We are executing better in key areas of our business, and we are also encouraged by the fact that input cost inflation trends for some items are moderating following the significant cost increases we experienced in recent quarters. Fiscal 2006 should be a year of solid operating profit performance as we continue to improve our packaged meats operations and make our cost structure more efficient." Retail Products Segment (58% of company sales) During the quarter, sales for the Retail Products segment were $1.9 billion, a decrease of 4% compared with the same period last year; sales mix was slightly negative, as volume declined 3%. Sales and volume decreases reflect a combination of the effect of price increases, customer and product mix changes, continued challenges for some packaged meats products, and to a lesser extent, a rigorous SKU (stock keeping unit) reduction program. o Sales for the company's top 30 brands as a group, which represent approximately 80% of total segment sales, decreased 1% during the quarter. >> Several brands posted strong sales performance as a result of ongoing sales and marketing initiatives intended to strengthen brand equity and improve category share performance. Popular brands posting sales gains include: Butterball, Chef Boyardee, DAVID, Kid Cuisine, La Choy, Manwich, Marie Callender's, Orville Redenbacher's, Peter Pan, Slim Jim, Snack Pack, Van Camp's, and Wesson. >> Those brands posting sales declines include: ACT II, Armour, Banquet, Blue Bonnet, Cook's, Eckrich, Egg Beaters, Healthy Choice, Hebrew National, Hunt's, PAM, Parkay, Reddi-wip, and Swiss Miss. The Retail Products segment operating profit for the quarter was $211 million, slightly above the amount reported for the same quarter last year. Several factors contributed to the profit performance, including price increases across several product lines, more efficient manufacturing operations, and overall cost-management efforts. Those factors largely offset higher input costs for beef, steel, resin, and transportation. Profit margin trends for the packaged meats operations have improved from the trends experienced during the second half of fiscal 2005, even though profits for those operations are substantially below desired levels. The packaged meats operations are benefiting from new management and lower pork input costs, as well as better net pricing policies that are closely linked to SKU optimization efforts and product and customer mix improvement. The company is encouraged by the progress being made by the new packaged meats team, and continues to expect year-over-year profit improvement for these operations in the second half of fiscal 2006. $7 million of costs associated with a plant closure in the current year, and $8 million of costs associated with implementing efficiency initiatives in the prior year, impact year-over-year comparability of segment operating profit. Foodservice Products Segment (23% of company sales) Sales for the Foodservice Products segment were $790 million for the first quarter, roughly equal to the same period last year. Segment operating profit was $80 million in the first quarter, up from $66 million in the year-ago period. Last year's operating profit includes $5 million of costs associated with implementing efficiency initiatives as well as $11 million of unfavorable production costs associated with a planned plant consolidation. During the first quarter, specialty potato products and culinary products increased volumes with key customers. Growth in operating profits for specialty potato products and culinary products primarily reflects increased volumes and improved operating efficiencies. Due to tariff-related market dynamics, sales and profits for seafood products were below year-ago levels. Higher transportation costs for the overall segment were partially offset by effective cost-management efforts. Food Ingredients Segment (19% of company sales) During the quarter, sales for the Food Ingredients segment were $631 million, an increase of 9% compared with the first quarter last year. Segment operating profit was $76 million, an increase of 27% over the year-ago period; this increase was largely driven by a very favorable market environment for the commodity trading and merchandising operations. Those operations, which include trading and merchandising energy, grains, fertilizer, and other input commodities, contributed $47 million of the segment's total operating profit of $76 million. Despite a weak performance from the dehydrated product lines, the specialty ingredients products posted growth in sales and operating profit due to a strong performance from the flour milling operations. Pilgrim's Pride Stock Sale o During the quarter, ConAgra Foods sold all of its remaining 15.4 million shares of Pilgrim's Pride Corporation (NYSE: PPC) common stock for approximately $482 million, resulting in a net pretax gain of approximately $329 million. That gain is classified on the company's income statement as Gain on sale of Pilgrim's Pride Corporation common stock. ConAgra Foods acquired these shares in the fall of 2003 in connection with the divestiture of its chicken-processing operations to Pilgrim's Pride. Equity Method Investments, Corporate Expense, Capital Resource Matters, and Tax Rate o Equity method investments posted a pretax loss of $14 million for the first quarter, reflecting impairment charges totaling $19 million associated with two joint ventures. For the same quarter last year, equity method investment earnings were $14 million. Prior to the company's sale of its equity investment in Swift Foods during the second quarter of fiscal 2005, that investment provided $7 million of equity method investment earnings to ConAgra Foods during the first quarter of fiscal 2005. o For the first quarter, corporate expense was $73 million, compared with $64 million for the same period a year ago. o For the quarter, capital expenditures for property, plant, and equipment totaled $71 million compared with $105 million last year. Depreciation and amortization expense was approximately $89 million for the quarter versus $88 million a year ago. Dividends paid totaled $141 million versus $135 million last year. Net interest expense for the quarter was $68 million compared with $73 million last year. o At the end of the first quarter, interest-bearing debt was $4.5 billion, compared with $5.7 billion for the same period a year ago. Because of debt prepayments made in fiscal 2005, the company has only $126 million of debt scheduled to be paid in fiscal 2006. As of the end of the first quarter, the company had more than $500 million of cash and cash equivalents on hand. o The company benefited from an effective tax rate of approximately 36% in the quarter; that rate is slightly less than the 38% effective tax rate in the first quarter of last year. The company currently expects the effective tax rate for fiscal 2006 to be in line with that of the first quarter. New CEO and New Chairman of the Board Recently the company announced that Gary Rodkin will become the company's new president and chief executive officer and a member of its board of directors on Oct. 1. He will succeed Bruce Rohde, the current chief executive officer. Board member Steven F. Goldstone has been elected the non-executive chairman, commencing Oct. 1. Mr. Goldstone is a retired chairman and chief executive officer of RJR Nabisco, and succeeds Bruce Rohde, the company's current chairman. Outlook As previously stated, the company continues to expect fiscal 2006 EPS to be higher than fiscal 2005 EPS, excluding amounts that impact comparability. That earnings improvement is expected to be more apparent in the second half of the fiscal year as the company makes more progress working through the issues that have negatively impacted the packaged meats operations. Major Items Affecting First-Quarter Fiscal 2006 EPS Comparability Included in diluted EPS of $0.68 for the first quarter of fiscal 2006 (EPS amounts after tax): o A gain of $0.40 per diluted share from the sale of Pilgrim's Pride Corporation common stock that is classified as such on the company's income statement. o Expense of $0.03 per diluted share resulting from impairment charges associated with two joint ventures. These amounts are included in the equity method investment results. o Expense of $0.01 per diluted share related to plant closure costs classified as part of the results for the Retail Products segment. o Income of $0.01 per diluted share from discontinued operations. Included in the $0.26 diluted EPS for the first quarter of fiscal 2005 (EPS amounts after tax): o Expense of approximately $0.02 per diluted share related to implementing cost-saving initiatives. For more details regarding the company's financial goals, please refer to the company's Web site, www.conagrafoods.com/investors, and choose the button titled, "ConAgra Foods Comments on Strategic Direction." ConAgra Foods Inc. (NYSE: CAG) is one of North America's largest packaged food companies, serving consumer grocery retailers, as well as restaurants and other foodservice establishments. Popular ConAgra Foods consumer brands include: ACT II, Armour, Banquet, Blue Bonnet, Brown 'N Serve, Butterball, Chef Boyardee, Cook's, Crunch 'n Munch, DAVID, Eckrich, Egg Beaters, Fleischmann's, Golden Cuisine, Gulden's, Healthy Choice, Hebrew National, Hunt's, Kid Cuisine, Knott's Berry Farm, La Choy, Lamb Weston, Libby's, Lightlife, Lunch Makers, MaMa Rosa's, Manwich, Marie Callender's, Orville Redenbacher's, PAM, Parkay, Pemmican, Peter Pan, Reddi-wip, Rosarita, Ro*Tel, Slim Jim, Snack Pack, Swiss Miss, Van Camp's, Wesson, Wolf, and many others. For more information, please visit us at www.conagrafoods.com. Discussion of Results ConAgra Foods will host a conference call at 9:00 a.m. EDT to discuss first-quarter results. Following the company's remarks, the call will include a question-and-answer session with the investment community. Domestic and international participants may access the conference call toll-free by dialing 1-877-447-8217 and 1-706-679-0415, respectively. No confirmation or pass code is needed. This conference call also can be accessed live on the Internet at www.conagrafoods.com/investors. A rebroadcast of the conference call will be available after 2:00 p.m. EDT. To access the digital replay, a conference I.D. number will be required. Domestic participants should dial 1-800-642-1687, and international participants should dial 1-706-645-9291 and enter conference I.D. 8266376. A rebroadcast also will be available on the company's Web site, where it will be archived. In addition, the company has posted a question-and-answer supplement relating to this release at www.conagrafoods.com/investors. To view recent company news, please visit www.conagrafoods.com/media. Note on Forward-Looking Statements: This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current views and assumptions of future events and financial performance and are subject to uncertainty and changes in circumstances. Readers of this release should understand that these statements are not guarantees of performance or results. Many factors could affect the company's actual financial results and cause them to vary materially from the expectations contained in the forward-looking statements. These factors include, among other things, future economic circumstances, industry conditions, company performance and financial results, availability and prices of raw materials, product pricing, competitive environment and related market conditions, operating efficiencies, access to capital, actions of governments and regulatory factors affecting the company's businesses and other risks described in the company's reports filed with the Securities and Exchange Commission. The company cautions readers not to place undue reliance on any forward-looking statements included in this release, which speak only as of the date made. ConAgra Foods, Inc. Segment Operating Results In millions FIRST QUARTER --------------------------------------------------------------- 13 Weeks Ended 13 Weeks Ended -------------------- -------------------- ------------------ August 28, 2005 August 29, 2004 Percent Change -------------------- -------------------- ------------------ SALES Retail Products $ 1,941.6 $ 2,014.2 (3.6)% Foodservice Products 789.9 792.2 (0.3)% Food Ingredients 631.4 576.8 9.5% -------------------- -------------------- Total 3,362.9 3,383.2 (0.6)% -------------------- -------------------- OPERATING PROFIT Retail Products $ 210.7 $ 209.8 0.4% Foodservice Products 79.5 66.4 19.7% Food Ingredients 76.3 60.1 27.0% -------------------- -------------------- Total operating profit for segments 366.5 336.3 9.0% Reconciliation of total operating profit to income from continuing operations before income taxes and equity method investment earnings (loss) Items excluded from segment operating profit: General corporate expense (73.0) (63.6) 14.8% Gain on sale of Pilgrim's Pride Corporation common stock 329.4 - 100.0% Interest expense, net (68.1) (73.4) (7.2)% -------------------- -------------------- Income from continuing operations before income taxes and equity method investment earnings (loss) $ 554.8 $ 199.3 178.4% ==================== ====================
Segment operating profit excludes general corporate expense, gain on sale of Pilgrim's Pride Corporation common stock, equity method investment earnings (loss) and net interest expense. Management believes such amounts are not directly associated with segment performance results for the period. Management believes the presentation of total operating profit for segments facilitates period-to-period comparison of results of segment operations. ConAgra Foods, Inc. Consolidated Statements of Earnings In millions, except per share amounts FIRST QUARTER --------------------------------------------------------------- 13 Weeks Ended 13 Weeks Ended ------------------- ------------------- ------------------- August 28, 2005 August 29, 2004 Percent Change ------------------- ------------------- ------------------- Net sales $ 3,362.9 $ 3,383.2 (0.6)% Costs and expenses: Cost of goods sold 2,635.4 2,700.4 (2.4)% Selling, general and administrative expenses 434.0 410.1 5.8% Interest expense, net 68.1 73.4 (7.2)% Gain on sale of Pilgrim's Pride Corporation common stock 329.4 - 100.0% ------------------- ------------------- Income from continuing operations before income taxes and 554.8 199.3 178.4% equity method investment earnings (loss) Income tax expense 193.6 81.0 139.0% Equity method investment earnings (loss) (13.9) 14.1 - ------------------- ------------------- Income from continuing operations 347.3 132.4 162.3% Income from discontinued operations, net of tax 4.8 2.3 108.7% ------------------- ------------------- Net income $ 352.1 $ 134.7 161.4% =================== =================== Earnings per share - basic Income from continuing operations $ 0.67 $ 0.26 157.7% Income from discontinued operations 0.01 - 100.0% ------------------- ------------------- Net income $ 0.68 $ 0.26 161.5% =================== =================== Weighted average shares outstanding 518.1 517.0 0.2% =================== =================== Earnings per share - diluted Income from continuing operations $ 0.67 $ 0.26 157.7% Income from discontinued operations 0.01 - 100.0% ------------------- ------------------- Net income $ 0.68 $ 0.26 161.5% =================== =================== Weighted average share and share equivalents outstanding 520.5 521.4 (0.2)% =================== ===================
ConAgra Foods, Inc. Consolidated Balance Sheets In millions August 28, 2005 August 29, 2004 --------------------- -------------------- ASSETS Current assets Cash and cash equivalents $ 501.4 $ 369.8 Receivables, less allowance for doubtful accounts Of $31.7 and $28.2 1,286.9 1,322.9 Inventories 2,756.3 2,584.9 Prepaid expenses and other current assets 572.7 372.6 Current assets of discontinued operations 8.5 257.6 --------------------- -------------------- Total current assets 5,125.8 4,907.8 Property, plant and equipment, net 2,834.5 2,868.7 Goodwill 3,794.0 3,791.2 Brands, trademarks and other intangibles, net 819.3 826.4 Other assets 444.4 1,564.9 Noncurrent assets of discontinued operations 0.4 54.9 --------------------- -------------------- $ 13,018.4 $ 14,013.9 ===================== ==================== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Notes payable $ 10.8 $ 22.4 Current installments of long-term debt 119.1 366.9 Accounts payable 926.9 863.4 Advances on sales 128.8 103.0 Accrued payroll 194.3 175.4 Other accrued liabilities 1,177.4 1,245.0 Current liabilities of discontinued operations 4.2 181.0 --------------------- -------------------- Total current liabilities 2,561.5 2,957.1 Senior long-term debt, excluding current installments 3,943.5 4,887.1 Subordinated debt 400.0 400.3 Other noncurrent liabilities 1,121.9 1,154.8 Common stockholders' equity 4,991.5 4,614.6 --------------------- -------------------- $ 13,018.4 $ 14,013.9 ===================== ====================
EX-99.2 3 cagqa.txt ConAgra Foods Q1 FY06 Question & Answer September 21, 2005 1. What were some examples of major brands in the Retail Products segment posting sales growth for the quarter? Butterball Chef Boyardee DAVID Kid Cuisine La Choy Manwich Marie Callender's Orville Redenbacher's Peter Pan Slim Jim Snack Pack Van Camp's Wesson 2. What were some examples of major brands in the Retail Products segment posting sales declines for the quarter? ACT II Armour Banquet Blue Bonnet Cook's Eckrich Egg Beaters Healthy Choice Hebrew National Hunt's PAM Parkay Reddi-wip Swiss Miss 3. What were unit volume changes for the quarter in the Retail Products and Foodservice Products segments? Retail Products volume declined 3% in the current quarter. As a point of reference for the year-over-year comparison, Retail Products volume increased 8% in the first quarter last fiscal year. Foodservice Products volume increased 4% in the current quarter. 4. How much was total Depreciation and Amortization (all types) from continuing operations for the quarter? Approximately $89 million (versus approximately $88 million in Q1 2005). $88 million of depreciation (versus $87 million in Q1 2005) $1 million of other amortization (versus $1 million in Q1 2005) 5. How much were Capital Expenditures from continuing operations for the quarter? Approximately $71 million (versus approximately $105 million in Q1 2005). 6. What was the net interest expense for the quarter? $68 million. 7. What was Corporate Expense for the quarter? Approximately $73 million (versus approximately $64 million in Q1 2005). 8. How much did you pay in dividends during the quarter? $141 million. 9. What was the weighted average number of diluted shares outstanding for the quarter? 521 million shares. 10. What was the approximate effective tax rate for the quarter (rounded)? 36%, reflecting a slightly lower tax rate compared to the prior year. 11. What were the gross margins and operating margins for the quarter ($ amounts in millions, rounded)? Gross Margin = Gross Profit* divided by Net Sales Gross Margin = $728/$3,363 = 21.6% Operating Margin = Segment Operating Profit** divided by Net Sales Operating Margin = $367/$3,363 = 10.9% * Gross Profit = Net Sales - Costs of Goods Sold ($3,363 - $2,635 = $728) **See first-quarter segment operating results for a reconciliation of Operating Profit to Income from continuing operations before income taxes and equity method investment earnings (loss). Income from continuing operations before income taxes and equity method investment earnings (loss), divided by Net Sales = $555/$3,363 = 16.5%. 12. What was the trade working capital position at quarter end, excluding amounts for discontinued operations? Trade working capital is defined as the net position of Accounts Receivable plus Inventory less Current Operating Liabilities (Accounts Payable, Accrued Expenses, and Advances on Sales). Q1 FY06 Q1 FY05 Accounts Receivable $1,287 $1,323 Inventory $2,756 $2,585 Less: Accounts Payable $ 927 $ 864 Less: Accrued Expenses $1,371 $1,420 Less: Advances on Sales $ 129 $ 103 ------- ------ Net Position $1,616 $1,521 13. What is included in the company's net debt at the end of the quarter (in millions)? Q1 FY06 Q1 FY05 Total Debt* $4,473 $5,677 Less: Cash On Hand $ 501 $ 370 ------- ------- Total $3,972 $5,307 * Total debt = short-term debt, long-term debt, and subordinated debt 14. What is the preliminary estimate of the effective tax rate for fiscal 2006 (rounded)? Approximately 36%. 15. What are the projected Capital Expenditures for fiscal 2006? Approximately $400 million. 16. What is the expected net interest expense for fiscal 2006? Approximately $300 million. 17. Has the company sold all of the shares of Pilgrim's Pride Corporation common stock it received when it divested its fresh poultry business to Pilgrim's Pride? Yes, ConAgra Foods sold 15.4 million shares in the quarter and no longer owns any Pilgrim's Pride common stock. 18. As reported in the earnings release and prior releases, what are the main items in the first-quarter fiscal 2006 diluted EPS that will affect comparability with first-quarter fiscal 2005 diluted EPS? Summary of major items included in diluted EPS of $0.68 for the first First Quarter FY06 quarter of fiscal 2006 ------------------ Gain on sale of Pilgrim's Pride Corporation common stock $0.40 Impairment charges related to two joint ventures $0.03 Expense related to plant closure $0.01 Income from discontinued operations $0.01 Summary of major item included in diluted EPS of $0.26 for the first First Quarter FY05 quarter of fiscal 2005 ------------------ Costs to implement efficiency initiatives $0.02
19. The attached tables were part of the fourth-quarter fiscal 2005 earnings release Q&A and have not changed. These are provided as reference because of classification changes that took place during the fourth quarter of fiscal 2005. ConAgra Foods, Inc. Segment Operating Results ($USD, in millions) ------------------------------------------- -------------------------------------------- FY 2004 FY 2005 Q1 FY04 Q2 FY04 Q3 FY04 Q4 FY04 Total Q1 FY05 Q2 FY05 Q3 FY05 Q4 FY05 Total ------- -------- -------- -------- -------- -------- -------- -------- -------- -------- Segment Sales Retail Products $1,841.0 $2,271.6 $2,091.3 $2,230.2 $8,434.1 $2,014.2 $2,485.4 $2,076.8 $2,092.7 $8,669.1 Foodservice Products 772.4 842.7 776.6 882.4 3,274.1 792.2 832.4 783.9 818.8 3,227.3 Food Ingredients 508.1 577.0 558.0 730.5 2,373.6 576.8 691.3 607.5 794.9 2,670.5 ------- -------- -------- -------- -------- -------- -------- -------- -------- -------- Total 3,121.5 3,691.3 3,425.9 3,843.1 14,081.8 3,383.2 4,009.1 3,468.2 3,706.4 14,566.9 Segment Operating Profit Retail Products 208.0 361.3 329.3 319.4 1,218.0 209.8 373.0 303.1 243.4 1,129.3 Foodservice Products 74.4 86.3 70.5 93.4 324.6 66.4 92.5 62.4 55.8 277.1 Food Ingredients 27.9 54.1 54.2 60.4 196.6 60.1 79.2 59.8 64.0 263.1 ------- -------- -------- -------- -------- ------- -------- -------- -------- -------- Total 310.3 501.7 454.0 473.2 1,739.2 336.3 544.7 425.3 363.2 1,669.5 Reconciliation of total operating profit to income from continuing operations before income taxes,equity method investment earnings (loss) and cumulative effect of changes in accounting Items excluded from segment operating profit: General corporate expense (90.3) (82.6) (79.2) (99.8) (351.9) (63.6) (72.3) (135.5) (130.8) (402.2) Gain on sale of Pilgrim's Pride - - - - - - - 185.7 - 185.7 Corporation common stock Interest expense, net (65.5) (68.2) (61.8) (79.4) (274.9) (73.4) (85.8) (68.1) (67.7) (295.0) -------- -------- --------- -------- -------- ------- -------- -------- -------- ------- Income from continuing operations before income taxes, equity method investment earnings (loss) and cumulative effect of changes in accounting $154.5 $350.9 $313.0 $294.0 $1,112.4 $199.3 $386.6 $407.4 $164.7 $1,158.0 ======== ======== ======== ======== ======== ======= ======== ======== ======== ========
- -------------------------------------------------------------------------------- Segment operating profit excludes general corporate expense, gain on sale of Pilgrim's Pride Corporation common stock, equity method investment earnings (loss) and net interest expense. Management believes such amounts are not directly associated with segment performance results for the period. Management believes the presentation of total operating profit for segments facilitates period-to-period comparison of results of segment operations. - -------------------------------------------------------------------------------- ConAgra Foods, Inc. Income Statement for FY05, FY04 ($USD, in millions) ----------------------------------------------- ---------------------------------------------- FY 2004 FY 2005 Q1 Q2 Q3 Q4 FY04 FY04 FY04 FY04 Total Q1 FY05 Q2 FY05 Q3 FY05 Q4 FY05 Total --------- --------- -------- -------- ---------- -------- -------- -------- -------- ---------- Net sales $3,121.5 $3,691.3 $3,425.9 $3,843.1 $14,081.8 $3,383.2 $4,009.1 $3,468.2 $3,706.4 $14,566.9 --------- --------- -------- -------- ---------- -------- -------- -------- -------- ---------- Costs and expenses Cost of goods sold 2,439.1 2,791.7 2,625.3 3,020.0 10,876.1 2,700.3 3,108.1 2,696.0 2,960.5 11,464.9 SG&A expenses 462.4 480.5 425.8 449.7 1,818.4 410.2 428.6 482.4 513.5 1,834.7 Interest expenses, net 65.5 68.2 61.8 79.4 274.9 73.4 85.8 68.1 67.7 295.0 Gain on sale of Pilgrim's Pride - - - - - - - 185.7 - 185.7 Corporation common stock --------- --------- -------- -------- ---------- ------- -------- -------- -------- ---------- Income from continuing operations 154.5 350.9 313.0 294.0 1,112.4 199.3 386.6 407.4 164.7 1,158.0 before income taxes, equity method investment earnings (loss) and cumulative effect of changes in accounting Income tax expense 36.4 130.3 110.6 151.5 428.8 81.0 156.1 161.0 71.9 470.0 Equity method investment earnings (loss) 11.2 16.3 1.9 14.1 43.5 14.1 15.1 (64.0) 9.9 (24.9) --------- ------- -------- --------- --------- ------- -------- --------- ------- ---------- Income from continuing operations 129.3 236.9 204.3 156.6 727.1 132.4 245.6 182.4 102.7 663.1 before cumulative effect of changes in accounting Income (loss) from discontinued 40.3 31.9 12.4 12.7 97.3 2.3 (6.0) (17.1) (0.8) (21.6) operations --------- ------- -------- --------- --------- ------- --------- -------- -------- --------- Income before cumulative effect of 169.6 268.8 216.7 169.3 824.4 134.7 239.6 165.3 101.9 641.5 changes in accounting Cumulative effect of changes in (11.7) - (1.4) - (13.1) - - - - - accounting --------- ------- --------- ------- ----------- ------- -------- -------- -------- ---------- Net income $157.9 $268.8 $215.3 $169.3 $811.3 $134.7 $239.6 $165.3 $101.9 $641.5 ========= ======= ========= ======= =========== ======= ======== ======== ======== ==========
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