UPDATE 2-ConAgra profit meets Wall Street view

* Q4 EPS 41 cts excluding items; meets Wall St estimates

* Sales up 7.5 pct to $3.30 bln

* Sees 2010 EPS $1.63-$1.66; Wall Street expected $1.63

* Shares flat in premarket trade (Adds CEO comments, background, share activity)

NEW YORK, June 25 (Reuters) - ConAgra Foods Inc (CAG.N) reported fourth-quarter profit in line with Wall Street estimates and forecast full-year earnings that could top expectations, helped by easing inflation.

The maker of Healthy Choice frozen meals, Peter Pan peanut butter and Slim Jim meat sticks said on Thursday that its consumer foods business made "significant progress" in the second half of the year.

The company has overhauled some product lines as it seeks to turn that business around.

Chief Executive Gary Rodkin said ConAgra is poised to increase earnings in fiscal 2010, along with investment in its brands, due in part to moderating inflation.

The company also said that an explosion that killed three workers earlier this month at its North Carolina Slim Jim processing plant should have no material impact on the brand.

Despite likely service disruptions during the current first quarter, ConAgra expects to achieve acceptable service levels during the second quarter.

Net income was $174.7 million, or 39 cents per share, in its fiscal fourth quarter, ended on May 31, down from $201.3 million, or 41 cents per share, a year earlier.

Excluding items, profit was 41 cents per share, matching analysts' average forecast, according to Reuters Estimates.

Sales rose 7.5 percent to $3.30 billion.

The company expects to earn $1.63 to $1.66 per share in fiscal 2010. Analysts on average were expecting $1.63, according to Reuters Estimates.

ConAgra shares were flat at $20.03 in premarket trade. (Reporting by Martinne Geller; editing by John Wallace)