ConAgra Says Peter Pan Recall is Ongoing

With the recent recall of Peter Pan and the announcement that the recall will cost ConAgra Foods an estimated 50-60 million dollars, I decided to give ConAgra a call to have a couple of questions answered that were on my mind (and those at the grocery store where I also work).
I talked with Stephanie Childs, Director of Communication for ConAgra, based in Omaha, NE. When asked when consumers could expect to see Peter Pan back on store shelves, Childs replied that no Peter Pan product was available and that ConAgra is continuing to work with the FDA and their on going investigation and what steps will be required next to correct the situation.
Since it has been suggested that the Peter Pan recall could bankrupt them, I asked her about this. She refused to comment and referred me to the website, where it talks about the estimated costs.
Once at the website, one quickly learns that they make much more then Peter Pan. They also make Jiffy Pop, Act II, PAM, Orville Redenbacher's, Blue Bonnet, Fleischmann's, Egg Beaters, Hunt's, Van Camp's, Reddi-wip, Wesson and many more brands to numerous to mention.
Then going to look at the investors news section, one is presented with the following statement.

Fiscal 2007: The company notes that its previous EPS guidance of $1.28 - $1.33 for fiscal 2007, excluding items impacting comparability, will need to be downwardly adjusted for the negative impact of the recent Peter Pan recall. The recall is the only reason for the downward revision. While the company is still quantifying the impact of the recall, its preliminary estimate is that the recall will create $50 million - $60 million, or $0.06 - $0.08 per share, of additional expense in the third quarter of the fiscal year. The company's fiscal 2007 EPS performance will likely be towards the low end of the range previously cited, taking into account the costs associated with the recall and the fact that several areas within the company are performing better than planned. The company will have more details about the financial impact of the recall with its third quarter earnings release on March 22, 2007.

It is easy to see with the size of the company, that even though $60 million is a sizable loss, it really isn't significant enough to bankrupt the company. So, I would have to disagree with those who have suggested that this recall could bankrupt them. In the end ConAgra will remain strong, even if sells of Peter Pan peanut butter does not ever get back to the levels before the recall.