ConAgra Under Probe, To Restate Results
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ConAgra Foods Inc. said fictitious sales and irregular accounting at its farm-products unit led to a federal inquiry and overstatement of profit for the last three fiscal years. The multi-foods giant said it will reduce pretax profit by a total of $123 million for fiscal 1998 through 2000, or 3.6%. The Securities and Exchange Commission is conducting an informal inquiry into United Agri Products, a seed and fertilizer unit that represents 9% of operating profit, the company said.
An investigation that began in November showed the unit improperly booked revenue on sales that were to take place at a later date, and that some contracts were fictitious or not binding, the company said. The fictitious sales were “relatively small,” a spokeswoman said without providing details.
Shares of ConAgra, whose brands include Chef Boyardee pasta, Bumble Bee tuna and Hunt’s sauces, fell 54 cents to close at $20.07 on the Big Board.
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