Net income in the quarter ended August 28 fell to $85.3 million from $146.4 million a year earlier, the company said in a statement. Excluding some items, profit was $0.29 cents, trailing the $0.31 average of 10 analysts’ estimates compiled by Bloomberg.

ConAgra’s consumer foods unit, which includes Banquet frozen meals and Slim Jim snacks, is grappling with soaring commodity costs. The company has raised prices in response, leading some consumers to spend less or trade down to cheaper store-brand items.

Revenue rose 9.5% to $3.07 billion. Chief executive officer Gary Rodkin failed to get Ralcorp to enter acquisition talks after offering as much as $5.18 billion for the St. Louis-based private-label foodmaker. The company withdrew its bid on September 19 and will now look at other targets, according to analysts including Morningstar Inc.’s Erin Lash.


From the September 20, 2011, Prepared Foods' Daily News.