Heinz sales dip in North America
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The H.J. Heinz Co. reported sales in emerging markets continued to surge in the third quarter, while those in its North American consumer products segment dipped.
But the Pittsburgh food company said it is on track to meet analysts' earnings expectations for the fiscal year.
Heinz this morning reported profit in the three months ending Jan. 25 of $284.7 million, or 88 cents per share, compared with $273.8 million, or 84 cents per share, in the same period a year ago.
Excluding charges for cost-cutting and manufacturing efficiency moves that the company instituted in the past year, earnings per share would have been 95 cents per share. Analysts polled by Thomson Financial were looking for 86 cents per share.
Total quarterly sales of $2.92 billion, were up 7.2 percent over last year's $2.72 billion.
The company said emerging markets, such as China, India, Indonesia and Brazil, generated more than 20 percent of its total sales in the quarter.
In addition, sales of the company's signature product, ketchup, rose more than 8 percent globally, helped in part by the Dip & Squeeze ketchup packets that Heinz has been using to replace traditional condiment packets.
In the North American consumer products segment, sales dipped 1.1 percent to $830 million in part because price increases on products such as Ore-Ida frozen potatoes and Classico pasta sauces lowered sales volume.
For the fiscal year, Heinz is projecting reported earnings in the range of $3.32 to $3.34 per share, excluding special items. Analysts are looking, on average, for $3.32 per share.
First Published February 17, 2012 8:34 am