Tuesday, December 21, 2010

More Reports of Declining Profits in the Food Industry


In today's WSJ, I notice that ConAgra's Q2 fiscal year profit decreased by 16%, a huge amount. Further, margins declined from 27.2% to 24%.

Rising commodity costs and lack of pricing power are the causes for the profit and margin decline.

I think 2011 could be a very weak year for the food industry.

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