ConAgra Slides 7%; Announces Big Charge And Cuts Q4 Outlook

ConAgra Foods Inc.

shares were sliding fast in pre-market trading Wednesday after the company cut its outlook and said it would miss fourth-quarter expectations. The packaged and commercial foods concern will take a $681 million fourth-quarter impairment charge to reduce goodwill, and blamed faltering performance on a 7% quarterly volume decline in consumer foods, as well as weak profits for private brands. Chief Executive Gary Rodkin said ConAgra was trying to improve its product mix, and as a result expects volume to improve in 2015 along with "mid-single-digit" growth in earnings per share. Rodkin added that the current dividend policy is not at risk. ConAgra now expects to post fourth-quarter earnings before items of 55 cents a share, down from its previous guidance of 60 cents. ConAgra is slated to post results June 26. Fourth-quarter operating profit for the private brands segment will fall by $60 million mainly because of price concessions. The company's profit projections for the segment are now "below original plans for the next several years." In pre-market trading ConAgra changed hands recently at $30.60 a share, down nearly 7 percent.