Wednesday, January 5, 2011

Green Mountain Cut Forecasts On Cost Worries

Green Mountain Cut Forecasts On Cost Worries : ConAgra Foods and Green Mountain Coffee have become the latest food & beverage firms to lower their profit forecasts due to the rising cost of ingredients.
ConAgra lowered its outlook for the full year to a “low single-digit percentage” rise, down from its earlier forecast of 5-7% growth. The company said commodity costs had risen more than it had projected, and it also blamed inefficient promotions, and an early $554m debt payment.

Meanwhile, Green Mountain forecast full-year profit that was lower than analysts had estimated, prompting its share price to slump by nearly 18% yesterday. The group said that higher coffee prices and the cost of introducing new products may cause its full-year earnings to come in as low as $1.19 a share, compared with its earlier forecast of $1.24 a share.
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