ConAgra raises long-term outlook on greater deal savings
ConAgra’s shares rose 4.7 per cent in early trading. Photograph: Spencer Platt/Getty Images
ConAgra Foods yesterday posted a quarterly profit slightly ahead of Wall Street estimates and raised its long-term outlook, citing increased cost-savings from its acquisition of Ralcorp.
ConAgra, whose shares rose 4.7 per cent in early trading, closed its $5 billion purchase of Ralcorp in January, making it the leading US manufacturer of “private label” foods, which retailers brand as their own.
The company said it now expects $300 million of annual savings from the acquired business by the end of fiscal 2017, up from an original estimate of $225 million.
In the fiscal fourth quarternet income was $192.2 million compared with a net loss of $86.2 million a year earlier. Excluding one-time items, profit was 60 cents per share. Net sales jumped 34 per cent to $4.59 billion.