Conagra Blames Asia
Woes For Low Returns

OMAHA, Neb. —(AP)— Multifoods giant ConAgra Inc. on Thursday blamed lower export demand from Asian markets and excess pork, poultry and beef supplies for a drop in fourth-quarter earnings.

The food conglomerate's net income was $168.7 million in the quarter that ended May 31, down nine percent from $186.5 million in the same period last year. Earnings per share were 36 cents on a diluted basis, down 12 percent from 41 cents in the same period last year.

Net sales for the fourth quarter were up one percent to $5.8 million from $5.7 million.

For the fiscal year, ConAgra saw decreased earnings because of a new Financial Accounting Standards Board directive on accounting for certain business system re-engineering costs, the company said. The accounting change required a one-time provision of $14.8 million, which was spent in the third quarter.

Due in part to that cost, ConAgra saw its net income drop from $615 million last year to $613.2 million. Diluted earnings per share also dropped slightly from $1.34 to $1.33. Net sales for the year were at $23.8 billion, down from $24 billion last year.

The company said its refrigerated foods business, which includes processed meats and poultry, had an operating profit crash of 40.1 percent over the year because of the low demand in Asia.

"We could have mitigated some of the earnings damage by managing better," said Bruce Rohde, president and chief executive officer. "We have moved aggressively to strengthen leadership and improve performance to make our fresh meat and poultry businesses as good as they can be."

ConAgra on Monday announced major changes in its top executive ranks as well as the creation of a new trading group and food-service company.

The company's grocery and diversified products business, which includes the Healthy Choice, Hunt, Wesson and other lines, had an operating profit increase of 12.5 percent over the past year.