Heinz income declines on divesture charge
PITTSBURGH — Higher sales in emerging markets were offset by costs related to the divesture of a business in China, leading to a 5% decline in income at The H.J. Heinz Co. during the third quarter.
For the quarter ended Jan. 27, the company had income of $269,546,000, equal to 84c per share on the common stock, which compared with $284,694,000, or 89c per share, during the same quarter of the previous year. The most recent quarter included a $36 million pre-tax and after-tax non-cash goodwill impairment charge related to the divesture of Shanghai LongFong Foods.
Sales for the quarter were $2,933,331,000, up 2% from $2,874,927,000 during the same quarter of the previous year.
For the nine months ended Jan. 27, net income was $817,017,000, or $2.55 per share, up 9% from $747,817,000, or $2.32 per share, during the same period of the previous year. Sales for the nine months were $8,538,315,000, up slightly from $8,495,904,000.
Heinz also recently announced it has entered a merger agreement to be acquired by Berkshire Hathaway and 3G Capital for $28 billion.