Heinz income up 9% in second quarter

by Staff
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PITTSBURGH — Growth in emerging markets contributed to a 9% increase in income for the H.J. Heinz Co. during the second quarter.

For the quarter ended Oct. 27, the company had an income of $251,435,000, equal to 78c per share on the common stock, which compared with an income of $231,435,000, equal to 73c per share, during the same quarter of the previous year. The company had sales of $2,614,623,000, down 1% from $2,646,786,000 during the same quarter of the previous year.

“Heinz delivered growth in operating income, net income and earnings per share in the second quarter of fiscal year 2011, led by strong organic growth in emerging markets and global ketchup,” said William R. Johnson, chairman, president and chief executive officer. “Our performance benefitted from strong margins as a result of good operating discipline across our U.S. and European businesses.

“Our strategy to accelerate growth in emerging markets is producing excellent results, especially in Asia, where Heinz is well-positioned with strong brands in growing economies that possess expanding numbers of new middle-class consumers. Emerging markets are driving our growth this year and are on track to generate at least 20% of the company’s total sales by 2013.”

For the six months ended Oct. 27, the company had an income of $491,862,000, equal to $1.53 per share, up 11% from $443,999,000, equal to $1.40 per share, during the same period of the previous year. Sales for the six months were $5,095,448,000, up slightly from $5,088,471,000 during the same period of the previous year.

“Heinz delivered solid results in the first half of fiscal 2011, and the company is raising our operating free cash flow outlook as a result,” Mr. Johnson said. “Heinz remains on track to deliver our financial targets for the full year. We are focused on driving profitable growth in both developed and emerging markets in the second half given the challenging environment and rising commodity costs.”

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