US: ConAgra to cut international ops

By: just-food.com | 22 February 2008

US food giant ConAgra Foods is reportedly cutting 92 jobs in Asia and Europe, as a result of disappointing sales.

The news of the cuts came a day after the Omaha-based company announced its third-quarter profit would be higher than expected due to strong performances by its commodities trading unit and its food ingredient division.

The cutbacks, which were reportedly announced to staff on Wednesday (20 February), are expected to begin next month and continue into the summer.

"Sales for our consumer businesses weren't what we wanted them to be in those markets," a ConAgra spokesperson told The Financial Times. "We're also streamlining those products overall."

Job cuts in Asia are expected to come in China, South Korea and Singapore, and in Europe the job cuts will come in the UK.

This month, ConAgra said the performance of its trading and merchandising segment had been stronger than expected but that input costs had weighed on its consumer food division.

During the six months to 25 November, profits from its trading in agricultural and energy commodities more than tripled from $54.5m to $240.1m.

Over the same period, profits from ConAgra's consumer foods business tumbled almost 11% to $410.4m

Officials at ConAgra failed to return requests for comment as just-food went to press.

Sectors: Baby food, Chilled foods, Commodities & ingredients

Companies: ConAgra