Today before the market opened, ConAgra Foods, Inc. (CAG) reported encouraging results for the first quarter FY2010 ended August 30, 2009.

Earnings excluding one-time items were 38 cents per share, compared to 27 cents in the year-ago quarter. It was the above Zacks Consensus Estimate of 33 cents. Total revenue was $2,961 million from $3,052 million in the year-ago quarter.

The consumer foods segment posted sales of $1,860 million, up 1% year over year and operating profit of $250 million, up from $186 million in the last year quarter. It accounts for 63% of the total revenue in the first quarter.

Sales for the commercial foods segment were $1,101 million, down 9% from the first quarter of FY2009. The sales decline was the result of lower flour prices resulting from lower underlying wheat costs. The segment’s operating profit was $141 million, 5% above the same period in FY2009. The segment is responsible for the remaining 37% of total revenue.

For the quarter, capital expenditures from continuing operations for property, plant and equipment were $119 million, compared with $106 million in the year-ago period. Depreciation and amortization expense from continuing operations was approximately $82 million for the quarter, compared to a total of $76 million in the year-ago period.

During the quarter, the company announced plans to build a state-of-the-art sweet potato processing plant in Delhi, Louisiana, which is expected to be fully operational by the end of calendar 2010. Management believes that the plant will enable additional significant sales and profit growth opportunities for the Lamb Weston specialty potato operations over time.

The company expects fiscal 2010 full-year diluted EPS from continuing operations, excluding items impacting comparability, to approach $1.70, based on the expectations for continued progress in the consumer foods segment throughout the remainder of the fiscal year.
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