ConAgra Foods Inc. (NYSE: CAG) reported fourth-quarter fiscal 2014 results before markets opened Thursday. The food processor and packager reported quarterly adjusted diluted earnings per share (EPS) of $0.55 on revenues of $4.44 billion. In the same period a year ago, ConAgra reported EPS of $0.60 on revenue of $4.56 billion. Fourth-quarter results also compare to the Thomson Reuters consensus estimates for EPS of $0.55 and $4.4 billion in revenue.

On a GAAP basis, ConAgra reported an EPS loss from continuing operations of $0.76 after taking a non-cash impairment charge of $681 million, of which $617 million was down to the company’s Private Brands segment. The company said that the profit decline and impairment charge reflects concessions made earlier this year to remain competitive on bids and customer service issues as well as higher-than-planned operating costs.

The company’s Consumer Foods segment posted a fourth-quarter operating profit decline of 34%, which includes restructuring cost and other one-time items. The drop was 3% when adjusted for those items. Revenue was down 7.4% year-over-year in the Consumer Foods segment.

The company provided fiscal year 2015 EPS guidance for a mid-single digit gain over fiscal 2014 EPS of $2.14. The Thomson Reuters consensus called for EPS of $2.28 for next year, a gain of 6.5%.

The company’s CEO said:

We are disappointed with fiscal 2014 overall, and we have a very focused sense of urgency directed toward improving our results. Despite the difficult year, we were able to generate substantial cash, meet our debt reduction commitments, and pay a strong dividend. … We expect private brand profitability to strengthen through organic growth, strong synergies, and gradually improving price/mix. Some of the challenges from fiscal 2014 will still be with us in fiscal 2015, although we believe results will gradually improve throughout the fiscal year.

ConAgra closed two plants in March and fired more than 400 workers. Its $4.9 billion acquisition of Ralcorp has not yet added the expected gains, and the joint venture with Cargill in forming Ardent Mills has only just begun. The coming year is essentially a rebuilding one for ConAgra, and the company expects the first half of the year to be little improved. By the second half of the fiscal year, the company expects the pricing concessions it made in its Private Brands segment to be completely in the rear-view mirror.

Shares of ConAgra were up about 1.2% in premarket trading, at $29.07 in a 52-week range $28.09 to $37.28. Thomson Reuters had a consensus analyst price target of around $31.60 before the results were announced.

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