Heinz income down 6% in quarter

by Staff
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PITTSBURGH — Higher ingredients costs were partly responsible for a 6% decline in income at the H.J. Heinz Co. during the second quarter.

For the quarter ended Oct. 26, the company had income of $237,009,000, equal to 74c per share on the common stock, which compared with income of $251,435,000, or 78c per share, during the same quarter of the previous year. Sales for the quarter were $2,831,832,000, up 8% from $2,614,623,000.

“Led by our trio of growth engines — emerging markets, global ketchup and our top 15 brands — reported sales grew more than 8%, and Heinz delivered organic sales growth for the 26th consecutive quarter despite the challenging economic environment in developed markets, especially in Australia and U.S. Foodservice,” said William R. Johnson, chairman, president and chief executive officer. “Overall, we saw a combination of continued strength in emerging markets, the U.K. and much of Europe, and mixed results in other developed markets where consumer confidence fell to its lowest level in 30 years.”

For the North American Consumer Products segment, the company had operating income of $201,927,000, down slightly from $203,964,000 during the same quarter of the previous year. The segment had sales of $794,271,000, down 1% from $902,925,000.

Operating income in U.S. Foodservice fell 33% to $34,476,000, while sales for the segment were $352,304,000, down 3% from $362,418,000 during the same period of the previous year.

For the six months ended Oct. 26, the company as a whole had income of $463,123,000, or $1.44 per share, down 6% from $491,862,000, or $1.54 per share, during the same period of the previous year. Sales for the six months were $5,681,413,000, up 11% from $5,095,448,000.

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