Quarterly operating profit for the Private Brands is expected to show a comparable year-over-year decline of approximately $60 million. While the majority of the profit shortfall was driven by pricing concessions previously discussed, cost challenges associated with integration and business transition also weighed on profit performance. The company remains highly confident in the long-term growth opportunities for the Private Brands segment given the company’s strong value-added capabilities that will be leveraged in the years ahead, the fundamental appeal of private brands to consumers, and the strategic importance of private brands to the retail customer base.Based on the challenges in the Private Brands segment in fiscal 2014 and the gradual nature of the anticipated recovery from fiscal 2014 earnings levels, the company’s current profit projections for the Private Brands segment are below original plans for the next several years, despite continued expectations for achievement of strong cost-related synergies in line with original plans.
ConAgra Foods Announces Fiscal 2014 EPS Below Plan, Reduces EPS Goals; Non-Cash Impairment Charges Recognized With No Impact On Comparable EPS; Fiscal 2014 Debt Reduction Goal Exceeded; Commitment To Strong Dividend Reaffirmed
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