| HOME | NEWS ALERTS | SMK RECOMMENDATIONS |

A Del Monte spokeswoman said the guidance is the first the company has provided for fiscal 2004.

"It is not as large a jump as some people had hoped for," said Nicole Black, packaged food company analyst with Bear Stearns and Co.

Del Monte, which sees revenue growth of 2 percent to 4 percent for fiscal 2004, said earnings per share are likely to range from 80 cents to 84 cents. When adjusted for integration expenses, profit-per-share growth is forecast between 6 percent and 9 percent, or 88 cents to 92 cents, Del Monte said.

Analysts on average expected a profit of 96 cents, according to research firm Thomson First Call (News - Websites).

Del Monte reaffirmed its profit estimate for the fiscal year ended April 27, 2003. According to First Call, analysts forecast the San Francisco-based company to report on average a fiscal 2003 profit of 84 cents a share, on estimates ranging from 80 cents to 87 cents.

Del Monte, which is integrating business it acquired from H.J. Heinz Co. (NYSE:HNZ - News) last December, also said it expects free cash flow, before integration expenses, in excess of $200 million for the new fiscal year ending May 2, 2004.

"That is very good," said Black of the cash flow.

The generated free cash flow will be used to pay down debt, Del Monte said, adding integration expenses for the year just begun were likely to be about $25 million.

"We anticipate completing the majority of our major integration initiatives in fiscal 2004 and by year's end will have a lower cost base and more efficient operating structure," Richard Wolford, Del Monte chairman and chief executive officer, said in a statement.

Del Monte's acquisition has added Heinz's StarKist Tuna, Kibbles'n Bits and 9Lives pet food, College Inn broths and Nature's Goodness baby food to its product line-up.