Sara Lee said it still expects adjusted earnings of $0.89-0.95 per share in fiscal 2012, even though the weakening euro reduced its expected foreign exchange benefit and the company announced a plan to sell its North American foodservice coffee business.

Those issues led the company to cut its full-year sales forecast to $7.9 billion to $8.15 billion, from a prior forecast of $8.5 billion to $8.75 billion.

"Though some investors may be disappointed with sales guidance reduction ... we suspect the building momentum behind the coffee and tea business and the fact that the company reiterated its full-year EPS guidance despite incremental headwinds ... may be enough to push shares incrementally higher," said Barclays Capital analyst Andrew Lazar in a research note.

For the first quarter of fiscal 2012, which ended on October 1, Sara Lee reported a net loss of $217 million, or $0.37 per share, compared with a year-earlier net profit of $192 million, or $0.29 per share.

Excluding items, Sara Lee reported a profit of $0.18 per share, topping analysts' average expectation by a penny, according to Thomson Reuters I/B/E/S.

Sales rose to $1.94 billion from $1.73 billion a year earlier. Analysts on average were expecting sales of $1.98 billion.

 From the November 4, 2011, Prepared Foods' Daily News.