ConAgra says earnings will miss forecast

ConAgra Foods, the packaged-food company that owns Chef Boyardee and Healthy Choice, said Wednesday that earnings will miss its forecast amid slow sales of consumer foods and shrinking profit at its private-label business.

Fourth-quarter earnings will be about 55 cents a share, excluding some items, the company said in a statement.

ConAgra, owner of Ralston Foods in Cedar Rapids and J.M. Swank in North Liberty, had previously predicted 60 cents for the period, which ended on May 25. The sluggish results also prompted a fourth-quarter writedown of $681 million.

ConAgra's consumer-foods business saw volume decline 7 percent, while profit was 'weak” in its private-brands division. The Omaha, Neb.-based company, which sells private-label products to supermarkets, drugstores and other retailers, is facing pricing pressure in the competitive market. Quarterly operating profit for that unit is expected to show a year-over-year decline of about $60 million, ConAgra said.

'We are disappointed with the consumer foods volume performance,” Chief Executive Officer Gary Rodkin said in the statement. 'We are in the process of improving product mix and promotion strategies.”

The private-label struggles contributed to the writedown last quarter, as well as profit challenges at certain retail brands such as Chef Boyardee, the company said. ConAgra's other brands include Hunt's ketchup, Orville Redenbacher's popcorn and Reddi-wip.

To get back on track, the company is cutting administrative costs and boosting productivity, Rodkin said. The company plans to deliver its full results on June 26 for the fiscal fourth quarter.