ConAgra Foods Inc. (New York symbol CAG) makes a wide variety of packaged foods, including Chef Boyardee canned pasta, Hunt’s tomato sauce, Peter Pan peanut butter and Orville Redenbacher popcorn. The company gets 67% of its revenue by selling its products to consumers. It gets the remaining 33% by selling foods to businesses. In its 2011 second quarter, which ended November 28, 2010, ConAgra’s sales rose 2.0%, to $3.2 billion from $3.1 billion a year earlier. Sales rose 1.0% at the consumer foods division, to $2.1 billion from $2.07 billion. The commercial foods division’s sales rose 3.0%, to $1.1 billion from $1.0 billion. The company sold more of its Lamb Weston specialty potato products. As well, ConAgra’s flour-milling operations raised their prices to offset higher wheat costs. In the latest quarter, the company earned $200.9 million, or $0.45 a share, down 16.2% from $239.7 million, or $0.53 a share, a year earlier. Strong price competition and rising ingredient costs cut profit margins. That was the main reason for the decline. If you’re interested in investing in stocks in the U.S. market, you really should have a subscription to our Wall Street Stock Forecaster newsletter. What’s more, you can get one month free when you subscribe now. Click here to learn how.
Investing in stocks: ConAgra reports lower earnings, slightly higher sales
Jim is an associate editor at TSI Network. He is the lead reporter and analyst for The Successful Investor and Wall Street Stock Forecaster and a member of the Investment Planning Committee. Jim has held the Chartered Financial Analyst designation since 1992 and spent more than a decade at the Financial Post DataGroup before joining TSI Network. He has a Bachelor of Commerce degree from the University of Toronto.