(RTTNews) - Processed and packaged foods company Sara Lee Corp. (SLE:
News ) is slated to announce its first-quarter results before the market opens Thursday, with analysts forecasting earnings of $0.18 per share, on revenues of $3.16 billion. In the prior-year period, the company posted earnings of $0.32 per share and net sales of $3.35 billion.
For fiscal 2010, the company expects earnings from continuing operations to be in a range of $1.03 - $1.09 per share, with net sales of $12.9 billion - $13.2 billion. Adjusted earnings are estimated to range between $0.84 and $0.90 per share. Analysts expect earnings of $0.90 per share, on revenues of $13.15 billion, for the full year.
Moreover, Sara Lee expects five out of six business segments to show an increase in adjusted operating segment income in fiscal 2010. The only exception to this is North American food service due to the continuing industry-wide pressure affecting most foodservice manufacturers and operators.
In September, Sara Lee announced the sale of its Personal Care business to Unilever Plc (UL, UN, ULVR.L) in a cash deal worth EUR 1.275 billion, as part of its aim to focus on its core food and beverage business.
Brenda Barnes, chairman and chief executive officer of Sara Lee, said, "The divestiture of body care and European detergents would advance our strategy to concentrate on our core food and beverage businesses where we enjoy a strong competitive position and where we can generate superior shareholder returns. We intend to use proceeds from the divestiture to invest for growth in our core businesses and to repurchase stock."
Among other players in the field, ConAgra Foods Inc. (CAG:
News ) witnessed a 63% downswing in first-quarter profit that totaled $165.9 million or $0.37 per share, compared with $442.4 million or $0.94 per share in the last year, which included a gain from the sale of the company's trading & merchandising operations. Net sales for the quarter decreased 3.1% to $2.96 billion from $3.06 billion in the previous year.
Another peer, Smithfield Foods Inc. (SFD:
News ) incurred a first-quarter net loss of $107.7 million or $0.75 per share, much wider than $13.2 million or $0.10 per share reported in the prior-year period. Sales for the quarter declined to $2.715 billion from $3.142 billion in the previous year.
Sara Lee shares, which have been trading between $6.80 and $11.79 in the past 52 weeks, closed Wednesday's trading session at $11.40.
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by RTT Staff Writer
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