ConAgra Foods Cuts FY15 EPS Forecast; Names Sean Connolly New CEO - Quick Facts

(RTTNews) - ConAgra Foods (CAG) announced that it currently expects fiscal 2015 comparable earnings per share to be lower than previously planned. The company said strengthening dollar has negatively impacted the earnings per share outlook. Meanwhile, the company said it remains committed to a strong dividend.

The company stated that two operating issues account for the majority of the changes in the outlook. Profitability for the Private Brands segment is weaker than planned due to a highly competitive bidding environment and execution shortfalls, which together have negatively impacted recent results and near-term expectations for volumes, pricing, and margins. The company added that ongoing longshoremen labor dispute on the U.S. West Coast has continued longer than the company expected, which has negatively impacted exports of Lamb Weston potato products.

The company now expects comparable fiscal 2015 earnings per share of $2.13-$2.18 versus originally expected mid-single digit rate of comparable EPS growth, while analysts estimate the company to earn $2.26.

ConAgra also announced Sean Connolly as its new chief executive officer replacing Gary Rodkin, effective April 6. Connolly will join the company on March 3 as CEO-elect and will work with Rodkin on transitioning.