Heinz income down 6% in quarter

by Staff
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PITTSBURGH — Income for The H.J. Heinz Co. fell nearly 6% during the third quarter on the costs of selling two businesses during the quarter, Appetizers And, Inc., and its private label frozen desserts business in the United Kingdom.

For the quarter ended January 27, the company had net income of $228,527,000, equal to 72c per share on the common stock, which compared with an income of $242,263,000, equal to 77c per share, during the same quarter of the previous year. Sales for the quarter were $2,681,702,000, up 13% from $2,379,711,000 during the same quarter of the previous year.

“Our excellent third-quarter performance reflects strong execution of our strategy to accelerate growth in emerging markets and increase consumer marketing and innovation to drive volume growth in key developed markets, especially the U.K. and U.S. retail businesses,” said William R. Johnson, president and chief executive officer. “After delivering our 19th consecutive quarter of organic sales growth, Heinz remains on track to deliver our recently increased fiscal 2010 e.p.s. outlook of $2.82 to $2.85 from continuing operations.”

In the North American Consumer Products segment, the company has an operating income of $207,048,000, up 8% from $191,437,000 during the same quarter of the previous year. Sales in the segment were $815,042,000, up 7% from $761,605,000 during the same quarter of the previous year.

The company’s Europe business had an income of $156,094,000, up 15% from $136,005,000 during the same quarter of the previous year. The segment had sales of $878,263,000, up 12% from $783,675,000 during the same quarter of the previous year.

The Asia/Pacific segment had an operating income of $47,574,000, up 51% from $31,489,000 during the same quarter of the previous year. Sales in the quarter were $500,060,000, up 41% from $354,430,000 during the same quarter of the previous year.

For the nine months ended January 27, the company as a whole had an income of $672,526,000, equal to $2.13 per share, down 10% from $747,937,000, equal to $2.38 per share, during the same quarter of the previous year. Sales during the nine months were $7,770,173,000, up 4% from $7,495,563,000 during the same quarter of the previous year.

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