ConAgra Foods, Inc. (CAG) Monday announced that its Chief Executive Officer Gary Rodkin has informed the Board of Directors of his intention to retire at the end of the company's fiscal year, May 2015.
The Board has established a search committee, led by independent director Richard Lenny, to identify Rodkin's successor. Lenny is the former chairman and chief executive officer of The Hershey Co. and has served on the ConAgra Foods board since 2009.
Rodkin, 62, joined ConAgra Foods in October 2005. Prior to that, he was chairman and chief executive officer of PepsiCo Beverages and Foods North America of Beverages giant PepsiCo, Inc. (PEP). He joined PepsiCo in 1998 after it acquired Tropicana, where he had served as president since 1995.
From 1979 to 1995, Rodkin held marketing and general management positions oat General Mills, with his last three years at the company as president of the Yoplait yogurt division.
ConAgra Chairman Steven Goldstone said, "ConAgra Foods is making good progress on its priorities, and we are confident in the company's ability to deliver on its fiscal year EPS commitments. The Board is extremely appreciative of Gary's leadership, vision and accomplishments over his almost nine years as CEO of ConAgra Foods. Under his stewardship, ConAgra Foods has transformed from a holding company into one unified company, with a well-balanced portfolio of Consumer, Commercial and Private Brand businesses, and strong operating capabilities."
Rodkin said, "I'm pleased we are beginning my last fiscal year at ConAgra Foods by making good progress, and I have deep conviction that we are on the right path to deliver sustainable, profitable growth due to our significantly improved operational capabilities and our differentiated portfolio that is right for today's value-oriented consumers."
In late June, the food giant reported a loss for the fourth quarter, compared to profit last year, reflecting significant impairment charges and lower sales due to weak performance mainly in the Consumer Foods segment.
Rodkin then noted that the company is disappointed with fiscal 2014 overall, and that it has a very focused sense of urgency directed toward improving results.
Looking ahead, the company expects fiscal 2015 earnings per share to reflect a mid-single digit rate of growth over $2.17 earned last year. Analysts project annual earnings per share of $2.25.
Earnings per share for fiscal 2016 and 2017 are expected to show a high-single digit rate of annual growth as the company benefits from a stronger underlying business, sizeable synergies, good productivity and efficiencies, and lower interest expense.
ConAgra shares gained $0.16 or 0.52 percent on Friday to settle at $30.96.
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