Heinz income up 22% in quarter

by FoodBusinessNews.net Staff
Share This:

PITTSBURGH — Net income for H.J. Heinz Co. rose 22% during the second quarter, driven by a 4% gain in sales.

For the quarter ended Oct. 29, Heinz had income of $276,710,000, equal to 88c per share on the common stock, which compared with income of $227,037,000, or 72c per share, during the same quarter of the previous year. Sales for the quarter were $2,612,541,000, up 4% from $2,523,379,000 during the same quarter of the previous year.

"I am pleased with the company’s second-quarter results particularly given the difficult economic environment," said William R. Johnson, chairman, president and chief executive officer. "The company drove strong organic sales growth with many of our leading brands pricing to mitigate substantially higher commodity costs."

In the North American Consumer Products segment, the company had operating income of $191,503,000, up 8% from $177,471,000 during the same quarter of the previous year. Sales for the quarter were $827,278,000, up 9% from $756,233,000 during the same quarter of the previous year.

Operating income in the U.S. Foodservice segment was $38,742,000, down 25% from $51,494,000 during the same quarter of the previous year. Sales were $391,024,000, down 4% from $406,441,000 during the same quarter of the previous year.

For the six months ended Oct. 29, the company posted income of $505,674,000, or $1.62 per share, up 17% from $432,331,000, or $1.36 per share, during the same period of the previous year. Sales for the quarter were $5,195,749,000, up 9% from $4,771,664,000 during the same period of the previous year.

"Our first-half results demonstrate the company’s growth strategy is working," Mr. Johnson said. "Heinz will accelerate its focus on boosting productivity and margins in light of the current economic climate. We will also shift investments in marketing and R.&D. toward value-oriented innovation, which is more important than ever to consumers. As we look beyond fiscal 2009, we remain confident in our business fundamentals, but in light of the volatile economic conditions, we will closely watch currency and commodity movements before we advise investors of our financial outlook for fiscal 2010."

For the fiscal 2009, the company said it will have earnings per share in the range of $2.87 to $2.91.

Comment on this Article
We welcome your thoughtful comments. Please comply with our Community rules.








The views expressed in the comments section of Food Business News do not reflect those of Food Business News or its parent company, Sosland Publishing Co., Kansas City, Mo. Concern regarding a specific comment may be registered with the Editor by clicking the Report Abuse link.