ConAgra Foods, like many food companies, is dealing with higher prices for ingredients, packaging and fuel and has raised its prices to offset those increases.
“The marketplace environment remains difficult due to continuing inflationary pressures and the impact of the current economy on consumers, so we are cautious about business conditions,” said Gary Rodkin, the chief executive.
But Mr. Rodkin acknowledged price increases were helping offset higher costs.
“We’re not declaring victory, but we’re making good progress,” he said during a call with analysts.
The results for the company, based in Omaha, Neb., were better than analysts expected, and ConAgra reaffirmed its fiscal 2012 outlook. Its shares rose $1.02. or 4 percent, to $26.19.
Net income fell to $171.8 million, or 41 cents a share, compared with $200.9 million, or 46 cents a share, in the period a year earlier. Excluding one-time items related to derivatives and restructuring, net income was 47 cents a share.
Revenue rose 8 percent, to $3.4 billion from $3.15 billion.
Sales of branded consumer foods, the company’s largest division that makes up 63 percent of sales, rose 4 percent, to $2.18 billion.
Top sellers were Banquet, Chef Boyardee, Hunt’s, Marie Callender’s, Orville Redenbacher’s and others.
Article source: http://feeds.nytimes.com/click.phdo?i=8f6b0d1c73fd2aa6eb9c0758a1c11102
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