_
FOR IMMEDIATE RELEASE
CONAGRA FOODS REPORTS SOLID FOURTH QUARTER & FISCAL
2003 RESULTS; PORTFOLIO PROGRESS ON TRACK
Highlights (versus a year ago):
o Fourth Quarter Diluted EPS = $0.28 vs. $0.36:
>> Fourth quarter 2003 diluted EPS of $0.28 includes $0.14 per diluted
share loss relating to the pending divestiture and discontinuation of
chicken operations.
o Fiscal Year Diluted EPS = $1.46 vs. $1.47:
>> Fiscal year diluted EPS of $1.46 includes $0.13 per share of loss
relating to the pending divestiture and discontinuation of chicken
operations.
>> Income from continuing operations (before cumulative effect of change
in accounting) increased significantly, reflecting lower amortization
expense, lower interest expense, significant improvement at United
Agri Products, Packaged Foods operating margin expansion, and a
favorable insurance settlement.
>> As part of ongoing portfolio improvement initiatives, the company sold
its fresh beef and pork business, its canned seafood business, and its
cheese operations, and also agreed to sell its chicken business.
Key 2003 Operating Results:
o The company's recent divestiture activity significantly impacts the
year-over-year comparability of sales and operating profits.
o Packaged Foods operating profit increased due to effective cost management,
improved mix, and growth for key brands. Packaged Foods operating margin
reached 13.4% up from 12.7% last year.
o Food Ingredients operating profit decrease was primarily due to lower
volumes and margins for certain spice products.
o The Meat Processing segment posted an operating profit decrease due to the
removal of fresh beef and pork operating profits from the company's
earnings base following the divestiture. As a result of the fresh beef and
pork divestiture and the planned chicken divestiture, the company will no
longer have any current Meat Processing segment activities.
o Agricultural Products posted a profit increase due to better customer and
product mix and successful cost management initiatives.
OMAHA, Neb., June 26, 2003--Today ConAgra Foods, Inc. (NYSE: CAG), one of
America's leading packaged food companies, reported diluted EPS of $0.28 for the
fourth quarter ended May 25, 2003, versus $0.36 in the comparable period last
fiscal year. The quarter's results include $0.14 per share loss related to
discontinued operations, $.13 per share of which was due to a write down of
chicken assets as part of the pending chicken company divestiture. Diluted EPS
for fiscal 2003 was $1.46, compared to $1.47 in fiscal 2002. Fiscal 2003 EPS
also includes $0.13 per share of loss relating to discontinued chicken
operations. Other items affecting the comparability of year-over-year EPS
results are discussed toward the end of this document.
Reflecting the divestitures in the Meat Processing segment as well as the
divestiture of canned seafood, cheese processing, and other operations, sales
for the fourth quarter declined, as planned, to $3.9 billion from $5.9 billion
last year. Similarly, fiscal year sales were approximately $20 billion, a
decline as planned from over $25 billion last year. As a result, operating
profit for the quarter increased 4% to $500 million, and operating profit for
the year decreased 1% to $1.9 billion. Packaged Foods operating margins
(operating profit divided by sales) expanded to 13.4% from 12.7% for the year.
Income from continuing operations increased 25% to $225 million for the quarter
and 14% to $840 million for the year.
Bruce Rohde, chairman and chief executive officer, commented, "We have made
significant progress this year transforming ConAgra Foods by reshaping the
company to develop a richer business model. Following a series of strategic
branded acquisitions over the last several years, fiscal 2003 was a year of
reshaping our portfolio to focus on high-quality, high-margin brands and
products that have wide appeal to consumers and trade customers. We reached
important milestones this year by divesting fresh beef and pork, seafood, and
several cheese operations, and by our agreement to sell our chicken operations.
This helps focus our resources to better serve our customers and consumers as we
work on becoming America's Favorite Food Company."
He went on to say, "We are encouraged by the year's improvement in overall
operating margins and solid cash flow. We will continue to focus on
brand-building, operating efficiencies, customer service, better margins, and
better returns. Because we have divested commodity-oriented businesses, we
should also benefit from lower volatility of earnings. We expect our future
financial performance to reflect the strength we have been building through our
portfolio, operations, marketing, logistics, and capital deployment strategies."
Segment Changes
During the quarter, the company reclassified its chicken operations to
discontinued operations. In addition, the basic ingredients businesses, which
include the commodity sourcing and merchandising functions, have been moved from
the Agricultural Products reporting segment to the Food Ingredients reporting
segment. Those items are explained in more detail toward the end of this
document.
Statement of Financial Accounting Standards (SFAS) 142
Although SFAS 142 favorably impacted the quarter and fiscal year EPS results,
this had no significant impact on segment operating profit, as segment operating
profit excludes goodwill amortization. SFAS 142 provides guidance for the
accounting for intangibles, including goodwill and brands.
Packaged Foods
(85% of Fiscal 2003 Total Company Operating Profit)
During the quarter, the company divested its canned seafood business as well as
two cheese processing businesses. Packaged Foods sales were $3.1 billion for the
quarter, 3% less than last year, reflecting the divestitures; lower selling
prices, the result of lower input costs, also dampened overall sales growth.
This quarter, brand volume trends showed gains for several major frozen, snack,
and refrigerated brands like ACT II, Banquet, Eckrich, Egg Beaters, Hebrew
National, Kid Cuisine, Marie Callender's, Orville Redenbacher's, and Reddi-wip,
and declines for some shelf-stable products, like Chef Boyardee, Hunt's, and
Wesson.
Overall sales for foodservice-oriented products were down slightly for the
quarter; however, sales for some product types like frozen seafood, specialty
potato products, and frozen pizzas increased. The company believes the overall
foodservice outlook has improved compared to earlier in fiscal 2003.
Overall segment operating profit declined $19 million to $418 million,
reflecting a $24 million reduction to inventory values for some refrigerated
foodservice meat products. Advertising and promotion expense increased during
the quarter as the company continues to invest in marketing and brand building
to reinforce consumer franchises and fuel profitable future growth.
For the fiscal year, Packaged Foods sales were $12.3 billion, down from $12.5
billion last year, reflecting lower input costs and corresponding selling prices
for some product types, as well as divestitures. Several key snack and frozen
brands posted sales gains for the year, contributing to the segment's overall
mix improvement. Operating profit for the Packaged Foods segment for the fiscal
year grew 3%, mostly the result of mix improvement and effective cost
management. Advertising and promotion expense increased during the year as the
company continues to invest in marketing and brand building. Overall Packaged
Foods operating margin reached 13.4% for fiscal 2003, significantly higher than
the 12.7% for fiscal 2002.
There are several initiatives underway to expand the profitability of the
Packaged Foods segment, including increased investment to strengthen the equity
of major brands, innovation with new products, and improved product quality. In
addition, the company considers SKU reduction, administrative expense
reductions, and the streamlining of its supply chain and logistics functions to
be important components of its goal to expand Packaged Foods segment margins in
fiscal 2004 and beyond.
Food Ingredients
(7% of Fiscal 2003 Total Company Operating Profit)
During the quarter, sales for the Food Ingredients segment were $530 million, up
from $474 million last year, reflecting strong top-line performance for milled
products and basic ingredients operations, largely reflective of higher
underlying input costs for grain-based products. Operating profit decreased to
$26 million due to lower margins for milled products and specialty spice
products, as well as increased systems development and administrative expenses.
For the fiscal year, sales reached $2.2 billion, up from $2.0 billion last year,
and operating profit decreased to $133 million from $198 million. The year's
lower operating profits were mostly due to weaker volumes and margins in the
company's milled and specialty spice businesses, largely resulting from an
intensely competitive environment.
The Food Ingredients segment now includes the company's basic ingredients
businesses, which are the company's commodity sourcing and merchandising
functions; those functions were previously included in the Agricultural Products
segment. Historical segment results have been reclassified to reflect this
segment change.
Meat Processing
(5% of Fiscal 2003 Total Company Operating Profit)
During the quarter, the company settled an insurance claim related to a fire at
a beef plant previously owned by the company in Garden City, Kan. The insurance
proceeds represented a recovery for the loss of facilities, inventory, and
related items. As a result of the settlement, the company realized approximately
$50 million of operating profit in the fourth quarter, or approximately $0.06
per diluted share. The destroyed plant was part of the fresh beef and pork
business divested earlier in fiscal 2003. For fiscal 2003, Meat Processing sales
were $2.5 billion and operating profit was $99 million, substantially below
fiscal 2002 amounts, which reflects the fresh beef and pork divestiture.
On June 9, 2003, the company announced the sale of its chicken business to
Pilgrim's Pride Inc.; the transaction is expected to close in the summer of
2003. The company will now report current and historical chicken operating
results as discontinued operations, and those results are no longer part of the
Meat Processing segment. In the fourth quarter, the company recorded an
impairment charge of approximately $0.13 per share, a write down of chicken
assets as part of the pending chicken company divestiture. Reclassifying this
business to discontinued operations has resulted in adjustments to certain
historical amounts. Those adjustments are detailed in the question-and-answer
document relating to this release on the company's Web site at
www.conagrafoods.com under the section for Investors.
Agricultural Products
(3% of Fiscal 2003 Total Company Operating Profit)
During the fourth quarter, sales for the company's Agricultural Products segment
were $307 million, down from $346 million last year, primarily reflecting
planned changes in customer mix. The segment posted an operating profit of $6
million, compared to a loss of $40 million in the fourth quarter of last year.
Improved customer and product mix, as well as effective cost management,
accounted for the operating profit improvement for the quarter.
For fiscal 2003, sales for the Agricultural Products segment totaled $2.9
billion, compared with $3.2 billion last fiscal year. Operating profits
increased for the year to $49 million, $85 million higher than last fiscal year,
reflecting a successful turnaround for this business over the last two fiscal
years.
The company's Agricultural Products segment includes only results for United
Agri Products (UAP), which distributes crop inputs to the grower community. The
company's basic ingredients businesses, which are the commodity sourcing and
merchandising functions, were previously reported in this segment, and are now a
part of the Food Ingredients segment. Historical segment results have been
changed to reflect this classification change.
Interest, Taxes, Corporate Expense & Capital Expenditures
Interest expense declined $44 million to $59 million for the fourth quarter.
During the quarter, the company's effective tax rate was approximately 31%,
significantly lower than in previous quarters and largely due to the tax impact
of recent divestitures. Corporate expenses for the fourth quarter increased to
$134 million. Excluding amounts for discontinued operations, capital
expenditures were $123 million compared with $141 million in the fourth quarter
of fiscal 2002. Excluding amount for discontinued operations, depreciation and
total amortization was $100 million for the quarter versus $145 million last
year. Dividends paid were $131 million, compared with $124 million last year.
For fiscal 2003, interest expense declined approximately $125 million to $276
million. The effective tax rate for fiscal 2003 was approximately 35%, lower
than last year's tax rate, primarily reflecting the impact of SFAS 142 and
divestitures. Corporate expenses increased to $411 million from $279 million,
partly reflecting transaction and divestiture-related costs as well as increased
expenses for marketing initiatives, systems, pension, employee medical benefit
costs, and other items. Excluding amounts for discontinued operations, capital
expenditures were $391 million compared with $476 million last fiscal year.
Excluding amounts for discontinued operations, depreciation and total
amortization was $401 million for the fiscal year versus $564 million last year.
Dividends paid were $509 million, compared with $483 million.
Outlook
Rohde remarked, "We enter fiscal 2004 as a more focused company, aggressively
pursuing our goal of developing a richer business model. We expect to continue
to improve our mix, margins, and returns for the long-term benefit of our
shareholders by building brands, channel expertise, and strong franchises with
our customers and consumers. Shaping our portfolio, achieving efficient
operations, and refining our sales and distribution expertise are underway and
gaining momentum. We look forward to reporting on our progress."
The company's long-term expectation is for operating earnings from businesses
owned for the entire fiscal year to grow at a annual rate in the mid-to-high
single digits, likely 5-9% in most years, reflecting anticipated industry
conditions and opportunities for cost savings and product mix improvement. The
company is aggressively reviewing all aspects of its supply chain and
manufacturing network for future profit improvement opportunities, and will make
significant changes to them in fiscal 2004, if warranted, to improve the
prospects of long-term profitability. Given that fiscal 2004 could be impacted
by these and other factors, including the possibility of short-term earnings
charges associated with possible changes to the supply chain and manufacturing
network, the company is not providing specific EPS guidance for full year fiscal
2004.
Due to a change in business mix year-over-year and plans for concentrated
marketing spending, the company expects EPS for the first quarter of fiscal 2004
to be below that of fiscal 2003. The first quarter of fiscal 2003 included
operating profit from the divested fresh beef and pork operations, while the
first quarter of fiscal 2004 will have no such operating profit.
As the company states in its 2002 annual report regarding its EPS expectations
for most years, there may be years when the company experiences strong
year-over-year EPS growth and other years when the company experiences more
modest growth or even EPS declines. This is largely due to changes in market
conditions and business cycles as well as the need for concentrated marketing
investment or other strategic moves, which can at times depress short-term
earnings. Acquisitions, divestitures, and other events can impact results in any
given year.
Major Items Affecting EPS Comparability
In addition to the write down of chicken assets as part of the pending chicken
company divestiture, several factors impact the comparability of year-over-year
EPS for the quarter and the full fiscal year. Fourth quarter and fiscal 2003 EPS
include $0.06 and $0.23, respectively, of benefit due to no longer amortizing
certain intangibles per industry wide required adoption of SFAS 142. Due to the
fresh beef and pork divestiture, fresh beef and pork related profits were $0.04
and $0.15 per diluted share lower in the fourth quarter and full fiscal year
2003, respectively, as compared with the applicable periods in fiscal 2002. The
current quarter and full year's results also include a favorable $.06 per
diluted share effect of insurance settlement related to a plant fire.
In addition, the company incurred increased pension expense due to a planned
reduction in the discount rate and lower asset return assumptions. Also, the
company was unfavorably impacted by lowering inventory values at its garlic and
refrigerated foodservice businesses.
Change to Reporting Segments
Effective this quarter, there are two major changes to the company's segment
reporting and historical results:
o The company previously reported an agreement to sell its chicken business.
That transaction is expected to close in the summer of 2003. Because of
that agreement, the results for the chicken business, which were previously
reported under the Meat Processing segment, are now reported as results
from discontinued operations. Reclassifying the chicken results in such a
manner impacts certain amounts, including current and historical segment
results. Overall current and historical diluted EPS does not change as a
result of the classification changes.
o As a result of organizational changes and consolidation for operational
efficiencies, as well as senior leadership changes within the Food
Ingredients segment, the company has changed the Food Ingredients reporting
segment so that it now includes results for the basic ingredients
operations, which include the commodity procurement and merchandising
functions. Those functions were previously reported as part of the
Agricultural Products reporting segment. As a result of this
reclassification, the Food Ingredients segment now includes results for
milled products, the specialty spice operations, and basic ingredients. The
Agricultural Products segment now only includes results for United Agri
Products (UAP), its crop inputs distribution business.
Change in Reporting of Equity Method Investment Earnings
As previously reported, on September 19, 2002, the company sold the majority of
its fresh beef and pork businesses to a venture led by Hicks, Muse, Tate & Furst
of Dallas, Texas. This transaction was part of the company's agenda to
concentrate capital in branded and value-added businesses. As a result of the
transaction, the company owns an equity interest in the new Swift & Co. ConAgra
Foods now reports its portion of the earnings from all of its joint ventures,
including Swift & Co., as equity method investment earnings. The company's
earnings from those activities were previously reported in the operating profits
of the applicable reporting segments. Reclassifying these earnings from
operating profit to equity method investment earnings has resulted in
adjustments to historical reporting segment operating profit numbers.
Reclassified historical segment operating profit numbers are available in the
question-and-answer document relating to the December 19, 2002 earnings release
on the company's Web site at www.conagrafoods.com under the section for
Investors.
ConAgra Foods, Inc. (NYSE: CAG) is one of North America's largest packaged food
companies, serving consumer grocery as well as restaurant and foodservice
establishments. Popular ConAgra Foods consumer brands include: Hunt's, Healthy
Choice, Banquet, Armour, Louis Kemp, La Choy, Lunch Makers, Knott's Berry Farm,
Wesson, Blue Bonnet, Kid Cuisine, Parkay, Reddi-wip, Marie Callender's, Cook's,
Butterball, ACT II, Slim Jim, Eckrich, Chef Boyardee, Orville Redenbacher's,
PAM, Snack Pack, Van Camp's, Peter Pan, Hebrew National, Gulden's, Pemmican,
Swiss Miss, and many others. For more information, please visit us at
www.conagrafoods.com.
Discussion of Results
A discussion of ConAgra Foods' fourth quarter results by Bruce Rohde, chairman
and chief executive officer; Jim O'Donnell, executive vice president and chief
financial officer; and Chris Klinefelter, vice president of investor relations,
will be available today at 8:00 a.m. EDT. To access the discussion, call
toll-free at 1-877-447-8217. International callers should dial 1-706-679-0415.
On the Internet, you may access the discussion at
http://www.conagrafoods.com/investors. No passcode or call identification number
is needed for the call at 8:00 a.m. EDT. A digital replay of the discussion will
be available after 9:00 a.m. EDT at 1-800-642-1687 and at 1-706-645-9291 for
international callers. The conference identification number for the digital
replay for domestic and international callers is 9851129. The company has posted
question-and-answer information relating to this release and an audio archive of
management's discussion at http://www.conagrafoods.com/investors. See ConAgra
Foods' Web site for recent news at http://www.conagrafoods.com.
Note on Forward-Looking Statements:
This news release contains "forward-looking" statements within the meaning of
the Private Securities Litigation Reform Act of 1995. These statements are based
on management's current expectations and are subject to uncertainty and changes
in circumstances. Actual results may vary materially from the expectations
contained in the forward-looking statements. Future economic circumstances,
industry conditions, company performance and financial results, availability and
prices of raw materials, product pricing, competitive environment and related
market conditions, operating efficiencies, access to capital, actions of
governments and regulatory factors affecting the company's businesses and other
risks described in the company's reports filed with the Securities and Exchange
Commission are examples of factors, among others, that could cause actual
results to differ materially from those described in the forward-looking
statements. The company is under no obligation to (and expressly disclaims any
such obligation to) update or alter its forward-looking statements whether as a
result of new information, future events, or otherwise.
ConAgra Foods, Inc.
Segment Operating Results
In millions FOURTH QUARTER - 13 Weeks Ended
-------------------------------
May 25, 2003 May 26, 2002 Percent Change
------------ ------------ -------
SALES
Packaged Foods $3,072.9 $3,155.3 (2.6)%
Food Ingredients 530.0 473.5
11.9%
Meat Processing - 1,899.9 (100.0)%
Agricultural Products 306.6 346.1 (11.4)%
----- ----------
Total $3,909.5 $5,874.8 (33.5)%
OPERATING PROFIT
Packaged Foods $418.1 $436.7 (4.3)%
Food Ingredients 25.7 39.5 (34.9)%
Meat Processing 49.7 44.0 13.0%
Agricultural Products 6.0 (39.6) 115.2%
------ ---------
Total operating profit $499.5 $480.6 3.9%
for segments ====== ======
Reconciliation of total
operating profit to income
from continuing operations
before equity method investment
earnings, income tax and cumulative
effect of accounting change
Items excluded from segment
operating profit:
General corporate expense $133.7 $71.5 87.0%
Interest expense, net 59.1 103.5 (42.9)%
Goodwill amortization - 26.7 (100.0)%
------ --------
Income from continuing
operations before equity
method investment earnings,
income tax, and cumulative
effect of accounting change $306.7 $278.9 10.0%
====== ======
Equity method investment
earnings $11.9 $9.0 32.2%
Income (loss) from
discontinued operations,
net of tax $(74.7) $12.7 (688.2)%
Segment operating profit excludes interest expense, goodwill amortization,
general corporate expense, income taxes and equity method investment earnings.
Management believes such expenses are not directly associated with segment
performance results for the period. Management believes the presentation of
total operating profit for segments facilitates period-to-period comparison of
results of segment operations.
ConAgra Foods, Inc.
Segment Operating Results
In millions TWELVE MONTHS - 52 Weeks Ended
------------------------------
May 25, 2003 May 26, 2002 Percent Change
------------ ------------ -------
SALES
Packaged Foods $12,266.1 $12,497.3 (1.8)%
Food Ingredients 2,192.5 2,020.3 8.5%
Meat Processing 2,468.7 7,733.4 (68.1)%
Agricultural Products 2,911.9 3,222.0 (9.6)%
------------ ------------
Total $19,839.2 $25,473.0 (22.1)%
--------- ---------
OPERATING PROFIT
Packaged Foods $1,643.0 $1,591.1 3.3%
Food Ingredients 133.4 198.1 (32.7)%
Meat Processing 99.4 188.8 (47.4)%
Agricultural Products 49.2 (35.3) 239.4%
------- ---------
Total operating profit for $1,925.0 $1,942.7 (0.9)%
segments ======== ========
Reconciliation of total operating
profit to income from continuing
operations before equity method
investment earnings, income tax
and cumulative effect of accounting
change
Items excluded from
segment operating profit:
General corporate expense $410.5 $279.3 47.0%
Interest expense, net 276.3 401.1 (31.1)%
Goodwill amortization - 108.1 (100.0)%
------ ---------
Income from continuing operations
before equity method investment
earnings, income tax, and
cumulative effect of
accounting change $1,238.2 $1,154.2 7.3%
======== ========
Equity method investment
earnings $37.9 $27.2 39.3%
Income (loss) from discontinued
operations, net of tax $(69.2) $49.3 (240.4)%
Segment operating profit excludes interest expense, goodwill amortization,
general corporate expense, income taxes and equity method investment earnings.
Management believes such expenses are not directly associated with segment
performance results for the period. Management believes the presentation of
total operating profit for segments facilitates period-to-period comparison of
results of segment operations.
ConAgra Foods, Inc.
Consolidated Statement of Earnings
In millions, except per share amounts FOURTH QUARTER - 13 Weeks Ended
-------------------------------
May 25, 2003 May 26, 2002 Percent Change
------------ ------------ -------
Net sales $3,909.5 $5,874.8 (33.5)%
-------- --------
Costs and expenses
Cost of goods sold 3,008.6 4,920.5 (38.9)%
Selling, general and administrative
expenses 535.1 571.9 (6.4)%
Interest expense, net 59.1 103.5 (42.9)%
----------- ------------
$3,602.8 $5,595.9 (35.6)%
-------- --------
Income from continuing operations before
equity method investment earnings and
income taxes $306.7 $278.9 10.0%
Equity method investment earnings 11.9 9.0 32.2%
Income taxes 93.5 108.4 (13.7)%
--------------- ---------------
Income from continuing operations $225.1 $179.5 25.4%
----------- -----------
Discontinued Operations
Income (loss) from operations of
discontinued poultry business $(120.2) $20.7 (680.7)%
Income tax (expense) benefit 45.5 (8.0) 668.8%
----------- -----------
Income (loss) from discontinued
operations $(74.7) $12.7 (688.2)%
------- -----
Net Income $ 150.4 $ 192.2 (21.7)%
======= =======
Income per share - basic
Income from continuing operations $0.43 $0.35 22.9%
Income (loss) from discontinued
operations (0.14) 0.02 (800.0)%
------ ----
Net income $0.29 $0.37 (21.6)%
===== =====
Weighted average shares outstanding 529.2 526.7 0.5%
===== =====
Income per share - diluted
Income from continuing operations $0.42 $0.34 23.5%
Income (loss) from discontinued
operations (0.14) 0.02 (800.0)%
------ ----
Net income $0.28 $0.36 (22.2)%
===== =====
Weighted average shares and share
equivalents outstanding 530.0 529.1 0.2%
===== =====
ConAgra Foods, Inc.
Consolidated Statement of Earnings
In millions, except per share amounts TWELVE MONTHS - 52 Weeks Ended
------------------------------
May 25, 2003 May 26, 2002 Percent Change
------------ ------------ -------
Net sales $19,839.2 $25,473.0 (22.1)%
--------- ---------
Costs and expenses
Cost of goods sold 16,016.3 21,495.6 (25.5)%
Selling, general and
administrative expenses 2,308.4 2,422.1 (4.7)%
Interest expense, net 276.3 401.1 (31.1)%
------------ ------------
$18,601.0 $24,318.8 (23.5)%
--------- ---------
Income from continuing operations
before equity method investment
earnings, income taxes and
cumulative effect of changes
in accounting $1,238.2 $1,154.2 7.3%
Equity method investment earnings 37.9 27.2 39.3%
Income taxes 436.0 445.7 (2.2)%
------------ ----------------
Income from continuing operations
before cumulative effect of
changes in accounting $ 840.1 $ 735.7 14.2%
----------- -----------
Discontinued Operations
Income (loss) from operations of
discontinued poultry business $(111.7) $80.3 (239.1)%
Income tax (expense) benefit 42.5 (31.0) 237.1%
----------- --------------
Income (loss) from discontinued
operations $(69.2) $49.3 (240.4)%
------- -----
Cumulative effect of changes in
accounting $3.9 $(2.0) 295.0%
Net Income $ 774.8 $ 783.0 (1.0)%
======= =======
Income per share - basic
Income from continuing operations* $1.59 $1.39 14.4%
Income (loss) from discontinued
operations (0.13) 0.09 (244.4)%
Cumulative effect of changes in
accounting 0.01 -- 100.0%
---- --
Net income $1.47 $1.48 (0.7)%
===== =====
Weighted average shares outstanding 528.6 525.8 0.5%
===== =====
Income per share - diluted
Income from continuing operations* $1.58 $1.38 14.5%
Income (loss) from discontinued
operations (0.13) 0.09 (244.4)%
Cumulative effect of changes in
accounting 0.01 -- 100.0%
---- --
Net income $1.46 $1.47 (0.7)%
===== =====
Weighted average shares and share
equivalents outstanding 530.7 528.0 0.5%
===== =====
* Prior year includes a charge to retained earnings of $0.01 resulting from the
company's redemption of a subsidiary's preferred securities.
ConAgra Foods, Inc.
Consolidated Balance Sheets
In millions
ASSETS May 25, 2003 May 26, 2002
- ------ ------------ ------------
Current assets
Cash and cash equivalents $ 628.6 $ 157.9
Receivables, less allowance for doubtful
accounts of $86.6 and $101.3 976.0 1,276.4
Inventories 3,274.8 4,077.1
Prepaid and other current assets 863.1 576.4
Current assets from discontinued operations 317.1 346.1
----- -----
Total current assets 6,059.6 6,433.9
Property, plant and equipment, net 2,819.8 3,449.9
Brands, trademarks and goodwill, net 4,669.9 4,786.0
Other assets 1,158.0 418.9
Non-current assets from discontinued
operations 364.1 482.2
----- -----
Total assets $15,071.4 $15,570.9
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Notes payable $ 26.9 $30.9
Current installments of long-term debt 508.7 209.0
Accounts payable 1,277.0 2,103.9
Advances on sales 351.3 374.8
Other accrued liabilities 1,493.1 1,452.9
Current liabilities from discontinued
operations 146.4 141.9
----- -----
Total current liabilities 3,803.4 4,313.4
Senior long-term debt, excluding current
installments 4,632.2 4,973.7
Other non-current liabilities 1,062.7 1,015.8
Non-current liabilities from discontinued
operations 13.4 32.7
Subordinated debt 763.0 752.1
Preferred securities of a subsidiary company 175.0 175.0
Common stockholders' equity 4,621.7 4,308.2
------- -------
Total liabilities and stockholders' equity $15,071.4 $15,570.9
========= =========