OMAHA, Neb. - ConAgra Inc said Friday it expects double-digit earnings per share growth and another year of record earnings in fiscal 1998.
The food processing giant reported earnings per share for the fiscal 1998 first quarter ended August 24 of $0.48, up from $0.42 a year earlier, on slightly lower sales.
Net income increased 14.6 percent to $110.1 million from $96.1 million a year ago. Net sales were $6.14 billion on the quarter, off from $6.16 billion in the year-ago period.
"Our strong first quarter was on plan and benefited from excellent results in our food inputs and ingredients segment. As the year goes on, we believe that our refrigerated foods and grocery and diversified products segments will increase their contribution," said chief executive Philip Fletcher.
ConAgra said its fiscal 1998 first-quarter effective tax rate was 39.5 percent compared with 41.0 percent in fiscal 1997's first quarter and 39.6 percent for all of fiscal 1997.
ConAgra said its frozen foods segment showed good sales growth and significant operating profit growth on the quarter. Its refrigerated foods segment saw operating profit fall seven percent and sales fall three percent quarter-over-quarter. "ConAgra expects that refrigerated foods will increase operating profit at a double-digit rate in the balance of fiscal 1998," the company said.
The branded processed meats business improved margins and increased earnings significantly, it said. Beef business earnings rose in Australia and declined in the United States.
The pork products business was profitable, but earnings were down due to the industry's high cost of raw materials, ConAgra said. Chicken products results improved, while earnings were down in turkey products. Cheese business earnings were down modestly, the company said.
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