Heinz income down 7% in quarter

by FoodBusinessNews.net Staff
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PITTSBURGH — Net income for The H.J. Heinz Co. during the first quarter fell 7% in part due to a stronger U.S. dollar. For the quarter ended July 29, the company had net income of $212,564,000, equal to 67c per share on the common stock, down from $228,964,000, or 73c per share, during the same quarter of the previous year.

Sales for the quarter were $2,467,923,000, down 4% from $2,583,208,000 during the same quarter of the previous year.

"Led by strong organic sales growth in emerging markets, our sharply focused global portfolio of leading brands performed well especially in our core categories of ketchup and sauces and infant/nutrition, even as the recession continued to impact consumer behavior," said William R. Johnson, chairman, president and chief executive officer. "At the same time, Heinz delivered robust cash flow, reflecting our strong focus on working capital and in particular on reducing inventory."

Emerging markets were led by business in Latin America, India and Russia.

The North American Consumer Products segment had operating income of $184,205,000 during the quarter, up 10% from $168,108,000 during the same quarter of the previous year. Net external sales for the segment were $727,242,000, down 2% from $741,182,000 during the same quarter of the previous year.

The U.S. Foodservice segment posted operating income of $31,170,000, up 25% from $24,940,000 during the first quarter of fiscal 2009. Sales in the segment were $346,501,000, down 2% from $353,413,000.

For the full 2010 fiscal year, the company expects sales growth of 4% to 6%, operating income growth of 6% to 8% and earnings per share growth of 5% to 8%.

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