Heinz earnings rise in 2Q
second-quarter earnings of 9.6 per cent on the back of strong sales
of ketchup and frozen foods.
Consumer food group H.J. Heinz Co.'s reported this week a rise in second-quarter earnings of 9.6 per cent on the back of strong sales of ketchup and frozen foods.
Heinz earned $208 million (€230.9m), or 59 cents (€0.95) a share, in the three months ended Oct. 31 compared with $190 million (€210.8m) or 54 cents (€0.59) a share, in the same period a year ago. The results matched analysts' estimates surveyed by Thomson Financial/First Call.
The Pittsburgh-based foodmaker last month revised its earnings downward, expecting fewer people would dine out, particularly at airports, hospitals and theme parks. The decline cost the company as much as 5 cents per share, said Leonard Teitelbaum, an analyst with Merrill Lynch.
Since the Sept. 11 terrorist attacks, restaurant meal purchases fell for the first time in a decade, Heinz said.
"A lot of restaurants traded away brand name ketchup to private labels to lower costs quickly on or after Sept. 11,'' said John McMillin, an analyst with Prudential Securities Inc. "But I think they'll recover from it.''
Heinz warned that third-quarter results will be lower, but expected profits to rebound in the fourth quarter.
"Heinz has a very strong brand focus with five mega brands driving almost 50 per cent of global sales,'' said Heinz chairman and chief executive William Johnson.
Heinz acquired Classico pasta sauces, Delimex Mexican foods, and Poppers and TGIF frozen snacks in the second quarter, which helped bolster sales, Johnson said. Sales in tuna and pet food also increased, but profits were lower than last year.
