ConAgra cuts profit forecast on weak private label business
(Reuters) - ConAgra Foods Inc (CAG.N), which makes Chef Boyardee pastas and Slim Jim beef jerky, cut its full-year profit outlook citing weaker profits in its private label business and lower sales of certain key brands in its consumer foods division.
Shares of the company fell more than 4 percent in premarket trading on Tuesday.
ConAgra Foods said it now expects adjusted earnings of $2.22-$2.25 per share for 2014, lower than its prior forecast of $2.34-$2.38 per share.
The food company also said its Ardent Mills joint venture with Cargill Inc CARG.UL and CHS Inc (CHSCP.O) will now close in the second quarter of 2014, instead of the first quarter, in part due to the ongoing regulatory review process.
Under the deal, ConAgra will contribute its flour milling operations and related businesses for a 44 percent stake in Ardent Mills.