Income for H.J. Heinz down 16% in quarter

by Staff
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PITTSBURGH — Net income at H.J. Heinz Co. fell 16% during the second quarter, led lower by the impact of currency shifts.

During the quarter ended Oct. 28, the company had income of $231,435,000, equal to 73c per share on the common stock, which compared with income of $276,710,000, or 88c per share, during the same quarter of the previous year. Sales for the quarter were $2,672,152,000, up 3% from $2,606,944,000 during the same quarter of the previous year.

“Heinz delivered a strong financial performance in an adverse economic climate, led by our growing strength in emerging markets,” said William R. Johnson, president and chief executive officer. “Looking forward, the company is raising its full-year outlook for earnings and cash flow, and we expect increased top-line momentum in the second half of the fiscal year.”

The North American Consumer Products segment had operating income of $200,868,000, up 5% from $191,503,000 during the same quarter of the previous year. The segment had sales of $791,511,000, down 4% from $827,278,000 during the same quarter of the previous year.

The European segment had operating income of $134,431,000, nearly flat compared with income of $134,768,000 during the same quarter of the previous year. Sales for the segment were $858,529,000, down 3% from $887,946,000 during the same quarter of the previous year.

The Asia/Pacific segment had income of $53,044,000, up 5% from $50,707,000 during the same quarter of the previous year. The segment had sales of $491,957,000, up 27% compared with $386,158,000 during the same quarter of the previous year.

For the six months ended Oct. 28, the company as a whole posted income of $443,999,000, down 12% from $505,674,000 during the same period of the previous year. The company had sales of $5,137,277,000, down 1% from $5,185,748,000 during the same period of the previous year.

The company also said it is raising its full-year fiscal 2010 outlook for earnings per share from continuing operations to a range of $2.72 to $2.82, which is up from a previous range of $2.60 to $2.70.

“We expect solid volume growth in the second half, fueled by significant increases in marketing, consumer-driven innovation and brand support initiatives that are underway to further leverage our strong brand equities, especially in developed markets,” Mr. Johnson said. FBN

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