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Jersey unit on ConAgra sales list
Friday, March 17, 2006
BY NELSON LAMPE
Associated Press
OMAHA, Neb. -- Focusing on what it calls its "highest potential brands," ConAgra Foods said yesterday it plans to sell its seafood and cheese lines, including an operation in Bergen County, N.J.
The company behind brands like Healthy Choice, Hunt's and Chef Boyardee also cut its dividend 34 percent and said it would record an unspecified amount of restructuring charges over the rest of the year.
ConAgra said the restructuring costs would lower operating earnings until fiscal 2009, when it ex pects to return to current earnings levels.
Its shares tumbled 4.5 percent.
The product and brand divesti tures are part of a sweeping company effort to streamline its product line and its operations.
"It is essential that we increase our investments behind our highest potential brands, simplify our portfolio of businesses and build a high-quality earnings trajectory," said Gary Rodkin, president and chief executive. The divestitures will help the company pare costs "and return quickly to recent earnings levels, but with a significantly stronger foundation for future performance," he said.
The quarterly dividend will be dropped to 18 cents a share, from the 27.25 cent dividend it has paid since December 2004. The new dividend is payable June 1 to shareholders of record May 1.
The sale of cheese lines includes two operations. One, in Mayville, Wis., employs 150 people and produces Country Line and Swiss Rose products. Its affiliated operation for warehousing, sales and fi nance is in Moonachie, N.J., and has 55 employees.
Also to be sold is the seafood business, which contributed an es timated $350 million in sales during the 2005 annual year, said Tania Graves, senior director of public af fairs for ConAgra. It produces shrimp and other breaded seafood products under the Singleton and Meridian names. A Tampa, Fla., operation employing 350 people will be sold.
The company previously announced the sale of its imitation shellfish business, which includes the Louis Kemp brand, to Seattle- based Trident Seafoods.
© 2006 The Star Ledger
© 2006 NJ.com All Rights Reserved.
Jersey unit on ConAgra sales list
Friday, March 17, 2006
BY NELSON LAMPE
Associated Press
OMAHA, Neb. -- Focusing on what it calls its "highest potential brands," ConAgra Foods said yesterday it plans to sell its seafood and cheese lines, including an operation in Bergen County, N.J.
The company behind brands like Healthy Choice, Hunt's and Chef Boyardee also cut its dividend 34 percent and said it would record an unspecified amount of restructuring charges over the rest of the year.
ConAgra said the restructuring costs would lower operating earnings until fiscal 2009, when it ex pects to return to current earnings levels.
Its shares tumbled 4.5 percent.
The product and brand divesti tures are part of a sweeping company effort to streamline its product line and its operations.
"It is essential that we increase our investments behind our highest potential brands, simplify our portfolio of businesses and build a high-quality earnings trajectory," said Gary Rodkin, president and chief executive. The divestitures will help the company pare costs "and return quickly to recent earnings levels, but with a significantly stronger foundation for future performance," he said.
The quarterly dividend will be dropped to 18 cents a share, from the 27.25 cent dividend it has paid since December 2004. The new dividend is payable June 1 to shareholders of record May 1.
The sale of cheese lines includes two operations. One, in Mayville, Wis., employs 150 people and produces Country Line and Swiss Rose products. Its affiliated operation for warehousing, sales and fi nance is in Moonachie, N.J., and has 55 employees.
Also to be sold is the seafood business, which contributed an es timated $350 million in sales during the 2005 annual year, said Tania Graves, senior director of public af fairs for ConAgra. It produces shrimp and other breaded seafood products under the Singleton and Meridian names. A Tampa, Fla., operation employing 350 people will be sold.
The company previously announced the sale of its imitation shellfish business, which includes the Louis Kemp brand, to Seattle- based Trident Seafoods.
© 2006 The Star Ledger
© 2006 NJ.com All Rights Reserved.
posted by Jones Lang LaSalle NJ News Blog at 9:48 AM
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