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Heinz profits flat
Thursday, September 07, 2000
H.J. Heinz Co. earned $200.6 million, or 57 cents per diluted share in the first quarter ended Aug. 2, essentially flat from year-ago net income of $206.7 million, or 57 cents. Excluding restructuring charges and other special items in both periods, per-share profits rose a stronger 4.6 percent, to 68 cents from 65 cents, in line with Wall Street estimates.
Chief Executive Officer William Johnson called it "a great quarter," keeping Heinz on track to meet its goal of 10 percent growth in earnings per share for the year. Still, Heinz warned yesterday that second-quarter results would be slightly lower than expected, prompting some analysts to question whether the company would still meet its target.
Heinz is expecting second-quarter profits at around 68 cents a share, while analysts' consensus estimate had been for 70 cents. Heinz shares fell $1.31 on the news, to close at $35.88.
Sales for the first quarter slipped 1 percent from a year ago, to $2.15 billion from $2.18 billion. The decline reflected lagging sales for StarKist tuna and canned pet food, and the impact of the sale of the Weight Watchers diet class business last September. Adjusting for Weight Watchers, sales were up 3.3 percent.
Heinz said ketchup sales were "extremely strong," pushing market shares to record levels for the period.
The company's new EZ-Squirt bottle with green-colored ketchup for kids is set to hit grocery shelves next month.
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