Heinz Profit Falls in Q2

H.J. Heinz Co., the world’s largest ketchup maker, on Friday said that its fiscal second quarter earnings has dropped by almost 6 percent, narrowly beating earlier forecasts as sales in emerging markets and higher prices offset decline in production volume.

The world’s largest ketchup maker H.J. Heinz Co. on Friday said that its fiscal second quarter earnings has dropped by almost 6 percent, narrowly beating earlier forecasts as sales in emerging markets and higher prices offset decline in production volume.

In a statement, Heinz said that its net income for the quarter that ended October 26 reached $237 million or 73 cents per share, down by at least 6 percent from $251.4 million or 78 cents per share a year ago.

Excluding one-time items related to productivity initiatives, the food manufacturer said that its total earnings reached 81 cents per share, narrowly beating FactSet forecast of 80 cents per share during the period.

Meanwhile, the company’s revenue rose to $2.83 billion, up by 8 percent. However, the results fell short of analysts’ expectations of $2.9 billion in the quarter.

Heinz said that global sales of its ketchup products remained strong, posting a 9 percent increase helped by increased prices.

It has also maintained its fiscal 2012 earnings guidance of $3.24 to $3.32 per share, focusing on emerging markets like India, China and Russia.

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