Heinz income up 6% in first quarter

by FoodBusinessNews.net Staff
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PITTSBURGH — Net income in the first quarter ended Aug. 1 at the H.J. Heinz Co. totaled $205,294,000, equal to 64c per share on the common stock, up 6% compared with $194,101,000, or 59c per share, during the same quarter of the previous year.

Sales were $2,248,285,000, up 9% from $2,059,920,000 during the same quarter of the previous year. Sales of the company’s top 15 brands increased 11% from the same quarter of last year, with ketchup sales increasing 13% and bean and soup sales increasing about 25%.

Operating income for the North American Consumer Products segment was $152,410,000, up 6% compared with $143,214,000 during the same quarter of the previous year. Sales for the segment were $664,672,000, up 8% from $615,577,000 during the same quarter of the previous year.

Operating income for the European segment was $138,395,000, up 16% from $119,349,000 during the same quarter of 2006. Sales were $766,017,000, up 12% from $685,862,000 during the same quarter of the previous year.

In Asia/Pacific, operating income was $51,251,000, up 50% compared with an operating income of $34,168,000 during the same quarter of 2006. Net sales were $371,345,000, up 18% compared with sales of $315,846,000 during the same quarter of the previous year.

Operating income for the U.S. Foodservice segment was $43,549,000, down 21% compared with $55,056,000 during the same quarter of 2006. Sales were $363,668,000, down 1% compared with $366,613,000 during the same quarter of 2006.

Operating income for the Rest of World Segment was $10,151,000, up 16% compared with $8,718,000 during the same quarter of 2006. Sales for the segment were $82,583,000, up 9% compared with $76,022,000 during the same quarter of the previous year.

"I am very pleased with the continuing momentum in the U.S. Consumer Products business, the terrific results in Asia Pacific and the accelerating turnaround in Europe," said William R. Johnson, chairman, president and chief executive officer. "Our first-quarter performance was outstanding considering a higher tax rate in the quarter and rising raw material prices, partially offset by favorable foreign exchange."

The company has increased its full-year earnings per share outlook to near the top of the $2.54 to $2.60 range.

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