Shares dropped more than 5 percent in premarket trading.
It is taking longer than expected for the private brands unit, acquired last year, to reach the operating profit that
Analysts surveyed by FactSet had expected full-year earnings of
Rodkin said the problems are considered near-term and that the company remains confident in the growth potential for its private brands.
The company also pointed to weaker-than-expected volumes for the consumer foods division — mostly for a few key brands — as well as margin pressure at the commercial foods unit due to potato crop quality.
For the third quarter,
Those same issues will likely impact 2015 results, the company said. It now anticipates 2015 earnings per share growth will be less than its previous double-digit forecast.
For fiscal 2016 and 2017,
Longer term, the company said it still foresees annual adjusted earnings per share growth of 7 percent to 9 percent and annual sales growth of 3 percent to 4 percent.
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