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ConAgra 3Q profit falls
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March 22, 2001: 8:44 a.m. ET
Maker of Armour meats, Bumble Bee tuna still meets forecasts for period
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NEW YORK (CNNfn) - Branded food producer ConAgra Foods Inc. saw profits fall by more than 30 percent in the third quarter but still met Wall Street forecasts for the period.
The Omaha, Neb.-based company, whose products include Banquet meals, Armour meats and Bumble Bee tuna, posted net income of $98.5 million, or 19 cents a share, in line with the forecast of earnings tracker First Call but down from the $143.4 million, or 30 cents a share, it earned a year earlier.
 The company blamed a difficult agricultural economy, increased marketing investment, and the impact of higher energy and other costs for the drop in profits.
Revenue grew 8.9 percent in the quarter to $6.4 billion from $5.9 billion, with most of the gain coming from a 22 percent increase in sales at its packaged foods division. Sales by its refrigerated foods division were essentially flat while agricultural products, its smallest segment, had an 8.5 percent sales increase.
The company said it is not changing guidance on future results, but acknowledged it will face difficulties in the current environment.
"We are seeing a different environment and performance in the second half of the fiscal year compared to the first half," CEO Bruce Rohde said. "Some of the issues that negatively impacted our third quarter will continue to impact the remainder of our fiscal year. We, like many other companies, are watching the effect of a softening economy on our business."
Analysts surveyed by First Call forecast that fiscal fourth-quarter earnings per share should fall to 38 cents from 46 cents a year ago.
Shares of ConAgra (CAG: Research, Estimates) slipped 4 cents to $18.83 Wednesday ahead of the report. 
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