Asian turmoil blamed on profits fall at ConAgra
A DECLINE in exports to Asia was blamed for a fall in net profits, down from $145 million to $139m for ConAgras third quarter to 22 February.
Demand for meat and poultry from the USA was hit by currency devaluation and Asias economic turmoil as well as a cyclical upturn in home meat and poultry production.
But United Agri Products, ConAgras crop inputs business, had strong operating profit growth.
The company said a surge in industry production compounded by lower Asian export demand drove down earnings in pork, poultry and US beef. The earnings decline in beef was especially severe because beef processing and cattle feeding both suffered price and margin declines.
- Financial Times 20/03/98 page 33