ConAgra sees 3rd-qtr profit above expectations

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But the company declined to give specific details on the earnings forecast for its fiscal third quarter, which ends February 24.

BOCA RATON, Florida (Reuters) - ConAgra Foods Inc <CAG.N> on Tuesday said profit for the current quarter would be higher than expected as strong performance in its trading and merchandise segment and its food and ingredients unit offset higher costs in its consumer foods business.

But the company declined to give specific details on the earnings forecast for its fiscal third quarter, which ends February 24.

Previously, ConAgra had forecast profit of 70 cents a share, before one-time items, for the second half of fiscal year 2008, with slightly more earnings per share in the third quarter than the fourth.

Analysts on average forecast 40 cents a share for the third quarter, according to Reuters Estimates.

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The trading business, a vestige of ConAgra's history as more of a commodities-based company, has helped offset weakness in the consumer business this year. It has seen strong results this year in its agricultural trading arm and fertilizer business.

But analysts have been concerned that the consumer business, which include brands like Healthy Choice meals and Chef Boyardee pasta, has not performed better under Chief Executive Gary Rodkin, who joined the company more than two years ago.

Like most food companies, ConAgra has been hit for the past two years by rising costs of ingredients like wheat.

ConAgra has already increased some prices and plans to impose more price increases in late March to offset rising costs. The impact of the price increases will be seen in the third quarter and more in the fourth quarter, the company said in remarks prepared for the Consumer Analyst Group of New York meeting in Florida.

Also on Tuesday, the company stood by its long-term forecast calling for earnings per share growth in the range of 8 percent to 10 percent, excluding items that may affect comparisons.

(Reporting by Brad Dorfman and Aarthi Sivaraman; editing by Gerald E. McCormick and Steve Orlofsky)