The H.J. Heinz Co. posted a net profit of $231.4 million in the second quarter, down from $276.7 million in the same period a year ago, as currency issues produced a drag on results.

But the Pittsburgh food company beat Wall Street expectations for earnings per share and raised its projections for fiscal year earnings.

Heinz Chairman, President and CEO William R. Johnson said this morning that consumers continue to be intensely focused on bargains. He also said the market seems to be stabilizing and that Heinz will aggressively increase marketing spending in the second half of the fiscal year, including a push in the frozen food aisles.

"The market is a little more receptive now. There's no point in chasing consumers out the door. I think that's a waste of money," Mr. Johnson said in a conference call with analysts.

Heinz posted earnings per share of 73 cents per share in the three months ended Oct. 28, down almost 12 percent from 87 cents last year.

Analysts polled by Thomson Financial had been looking for 70 cents per share.

Total sales grew 2.5 percent to $2.67 billion vs. $2.61 billion last year, driven by strong growth in markets such as India, Latin America and the Asia-Pacific regions. Sales in the North American consumer products segment fell 4.3 percent and those in the U.S. Foodservice segment sales were flat.

Heinz sales reach around the globe means shifts in currency exchange rates can have a significant impact on reported results. Factoring out the impact of currency issues, the company said sales in the quarter grew 3.5 percent, operating income by 10.2 percent and earnings per share by almost 16 percent.

For the full fiscal year ending April 28, Heinz is now projecting earnings per share in the range of $2.72 to $2.82, up from earlier guidance in the range of $2.60 and $2.70.

Analysts had been looking for $2.75.

Looking for more from the Post-Gazette? Join PG+, our members-only web site. You'll get exclusive sports content, opinion, financial information, discounts from retailers and restaurants, and more. Our introduction to PG+ gives you all the details.