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Heinz profit falls 23%
Reuters via Yahoo! News ^ | February 28, 2006 | Brad Dorfman

Posted on 02/28/2006 11:08:01 AM PST by new yorker 77

Ketchup maker H.J. Heinz Co. (NYSE:HNZ - news) on Tuesday posted a 23 percent drop in net profit, and fell short of Wall Street estimates, as its tax rate rose and the stronger dollar cut into the value of overseas sales.

Analysts said part of the earnings miss was because some operations that were reclassified by the company as discontinued had been classified as ongoing operations by analysts when they made their estimates.

"At least part of the apparent miss was due to the sale of businesses in Europe, as Heinz streamlines its operations there -- a plan that we like," Edgar Roesch, analyst at Bank of America Equity Research, said in a research note. He rates Heinz shares "buy."

The company is in the process of selling parts of its European business in order to improve profitability in that region. It saw sales volume declines in its Italian baby food business and frozen food business in Britain.

Heinz shares rose 5 cents to $37.65 in morning trade on the New York Stock Exchange, after falling as much as 2.6 percent earlier.

Net profit fell to $116.6 million, or 35 cents a share, for the fiscal third quarter ended January 25, from $152.4 million, or 43 cents a share, a year earlier.

Excluding one-time items, earnings from continuing operations were 50 cents a share, the company said. Analysts on average forecast earnings 56 cents a share, according to Reuters Estimates.

Sales rose 5.7 percent to $2.19 billion, driven mainly by acquisitions. Excluding the impact of foreign exchange rates, sales were up 9.4 percent. Analysts on average had forecast sales of $2.37 billion.

Based on volume, which factors out currency and price fluctuations, sales rose 2.9 percent, driven by the North American consumer products business and the Australian and UK businesses.

The company's European seafood business, which Heinz agreed last week to sell to Lehman Brothers Merchant Banking for 425 million euros, and the Tegel poultry business, which Heinz has also agreed to sell, were both included as discontinued operations.

The company said it is still looking to sell other businesses and is looking for ways to maximize shareholder value in its European frozen foods business.

Heinz's effective tax rate in the quarter rose to 35.5 percent, compared with 22.3 percent in the year-earlier quarter. Heinz said it continue to expect an effective tax rate for the fiscal year of 30 percent to 31 percent.

Heinz stood by its forecast for a 6 percent to 8 percent increase in fiscal 2007 earnings from pro forma 2006 earnings of $2.10 to $2.16, with sales up 3 percent to 4 percent.

Heading into Tuesday, Heinz shares traded at about 16 times estimated 2006 earnings, compared with a multiple of 17 for the Dow Jones U.S. Food Producers Index. (^DJUSFO - news).

The stock rallied 10 percent between February 6 and February 23, boosted by talk that billionaire investor Nelson Peltz could challenge the company's management in a proxy fight.

The deadline for filing a proxy motion is Saturday, Heinz Chairman and Chief Executive William Johnson said. He declined to say if he had spoken directly with Peltz.

"We're always prepared and willing, pleased to meet with shareholders." Johnson said in response to an analyst's question during a conference call.

Copyright © 2006 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Copyright © 2006 Yahoo! Inc. All rights reserved.


TOPICS: Business/Economy; News/Current Events
KEYWORDS: hjheinz; ketchup
My Campaign Funds!


Written by Brad Dorfman


1 posted on 02/28/2006 11:08:01 AM PST by new yorker 77
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To: new yorker 77

They can try to distance themselves from that squaw, but the kids are just as bad.

I am a Hunt's ketchup, et al, buyer now.


2 posted on 02/28/2006 11:10:15 AM PST by MeanWestTexan (Many at FR would respond to Christ "Darn right, I'll cast the first stone!")
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To: new yorker 77

"net profit...fell short."

Catch up. Get it. Ketchup.


3 posted on 02/28/2006 11:12:52 AM PST by swain_forkbeard (Rationality may not be sufficient, but it is necessary.)
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To: new yorker 77

IBBF!


4 posted on 02/28/2006 11:14:08 AM PST by Recovering_Democrat ((I am SO glad to no longer be associated with the party of Dependence on Government!))
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To: new yorker 77

Here I thought it was because of te-RAY-za skerry.


5 posted on 02/28/2006 11:20:49 AM PST by lilylangtree
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To: new yorker 77
Heinz profit falls 23%

Does that mean that Kerry gets a smaller allowance now?
6 posted on 02/28/2006 11:23:16 AM PST by adorno
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Comment #7 Removed by Moderator

To: jv1

Wish I could say the same. I've always liked and bought Heinz ketchup. It's the only brand that I buy. However, I do water it down to make it last longer so that I don't have to give the company more money.


8 posted on 02/28/2006 11:29:44 AM PST by lilylangtree
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To: adorno

Means the gigolo will be hunting for his next meal ticket.

Arafats wife is now single and loaded. They are perfect together.


9 posted on 02/28/2006 11:32:04 AM PST by Proud_USA_Republican (We're going to take things away from you on behalf of the common good. - Hillary Clinton)
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To: new yorker 77

We stopped buying Heinz.


10 posted on 02/28/2006 11:38:05 AM PST by msjhall
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To: new yorker 77

Would've been funnier if it has fallen 57%


11 posted on 02/28/2006 11:38:30 AM PST by Kaylee Frye
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To: Kaylee Frye

should read:

Would've been funnier if it had fallen 57%


12 posted on 02/28/2006 11:39:21 AM PST by Kaylee Frye
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To: msjhall

We stopped buying Heinz.

So did we -- guess a lot more people did, too!


13 posted on 02/28/2006 11:40:56 AM PST by Polyxene (For where God built a church, there the Devil would also build a chapel - Martin Luther)
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To: MeanWestTexan

Unfortunately, this won't hurt Kerry or Terrayzza at all. They'll just fire some workers or sell off some of the business. Gotta keep those SUV's in gas.


14 posted on 02/28/2006 11:45:43 AM PST by Shooter1001
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To: Polyxene
The Lokki's are doing our little bit to boycott Heinz products. We don't use much catsup here is salsa country....
However, we finally ran out and I bought a bottle of Hunt's catsup for the first time in my life....

My wife (who isn't from the U.S.) didn't see what the big deal is ... catsup is catsup for her.. Guess that from now on, she's right.
15 posted on 02/28/2006 11:46:56 AM PST by lOKKI (You can ignore reality until it bites you in the ass.)
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To: new yorker 77

NONE of my family will ever buy another heinz product EVER!

LLS


16 posted on 02/28/2006 11:49:45 AM PST by LibLieSlayer (Preserve America... kill terrorists... destroy dims!)
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To: new yorker 77

Porr Mrs. Kerry will have to use Beefeaters Gin rather than Tanquery or Bombay Saphire to soak her white raisins.


17 posted on 02/28/2006 11:50:26 AM PST by The Great RJ ("Mir wölle bleiwen wat mir sin" or "We want to remain what we are." ..Luxembourg motto)
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To: lilylangtree
"...I do water it down to make it last longer so that I don't have to give the company more money."

So your Heinz Ketchup tastes just like the Heinz in restaurants?

18 posted on 02/28/2006 11:51:24 AM PST by TommyDale
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To: MeanWestTexan

Isn't one of dizzy tizzy's son's running for elective office in Pennsylvania?


19 posted on 02/28/2006 11:53:55 AM PST by OldFriend (PRAY FOR OUR COUNTRY)
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To: new yorker 77

Seems to me their losses were mainly in the European sector, possibly due to many coalition member nations that didn't like Kerry's attacks on President Bush.


20 posted on 02/28/2006 11:53:59 AM PST by UCANSEE2 (and miles to go before I sleep.)
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To: new yorker 77

Seems to me their losses were mainly in the European sector, possibly due to many coalition member nations that didn't like Kerry's attacks on President Bush.


21 posted on 02/28/2006 11:54:00 AM PST by UCANSEE2 (and miles to go before I sleep.)
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To: UCANSEE2

hiccup.


22 posted on 02/28/2006 11:54:25 AM PST by UCANSEE2 (and miles to go before I sleep.)
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To: Polyxene

I also did to.


23 posted on 02/28/2006 11:55:19 AM PST by exdem2000
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To: new yorker 77

My boycott of all heinz products are working, PTL!!!


24 posted on 02/28/2006 11:55:49 AM PST by danamco
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To: new yorker 77

Picante sauce passed catsup a few years ago in volume sales in the US.


25 posted on 02/28/2006 11:56:11 AM PST by blam
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To: OldFriend

I vaguely recall that.

I just remember thinking: hmmm liberal genes must be dominant, because none of the late Sen. Heinz genes got into his progeny.

That, or they are political opportunists.

Either way, a waste of oxygen.


26 posted on 02/28/2006 11:59:40 AM PST by MeanWestTexan (Many at FR would respond to Christ "Darn right, I'll cast the first stone!")
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To: adorno
Heinz profit falls 23%




Now I see, why she was so totally "loaded" at johbSkerry's concession speech in Boston after W.'s victory!!!
27 posted on 02/28/2006 12:03:53 PM PST by danamco
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To: lilylangtree

Please be brave and change your taste butt!!!


28 posted on 02/28/2006 12:05:21 PM PST by danamco
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To: adorno
Does that mean that Kerry gets a smaller allowance now?

He's only allowed to take the Gulfstream to Europe three times a year now instead of the usual four.

29 posted on 02/28/2006 12:06:10 PM PST by jpl ("We don't negotiate with terrorists, we put them out of business." - Scott McClellan)
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To: Shooter1001
Unfortunately, this won't hurt Kerry or Terrayzza at all. They'll just fire some workers or sell off some of the business.

The Heinz family no longer runs the Heinz company. It is a publicly traded company just like any other on the market.

Teresa and John Kerry don't have anything to do with running the company and feeble boycotts will do nothing to affect their wealth.

SD

30 posted on 02/28/2006 12:13:56 PM PST by SoothingDave
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To: new yorker 77

She sold her Heinz stock a couple years ago. Still nice to have the connection.

Pray for W and Our Freedom Fighters


31 posted on 02/28/2006 12:17:11 PM PST by bray (GW protects Americans while DinocRats protect Al Queda)
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To: SoothingDave

That's too bad. I think I'll just go out and buy another copy of 'Unfit..' then!

I hate that SOB Kerry. That's right I said HATE! Even his name is phony


32 posted on 02/28/2006 12:43:23 PM PST by Shooter1001
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To: new yorker 77

"I see another rich widow"

33 posted on 02/28/2006 12:50:13 PM PST by ChadGore (VISUALIZE 62,041,268 Bush fans. We Vote.)
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Del Monte ketchup tastes much better!


34 posted on 02/28/2006 12:55:48 PM PST by Drago
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To: new yorker 77


We make certain to never buy Heinz.


35 posted on 02/28/2006 12:58:05 PM PST by onyx (IF ONLY 10% of Muslims are radical, that's still 120 MILLION who want to kill us.)
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To: new yorker 77

gives new meaning to "Heinz ketchup is soooo...slow."


36 posted on 02/28/2006 1:37:38 PM PST by UCANSEE2 (and miles to go before I sleep.)
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To: new yorker 77

So...the boycott is working?


37 posted on 02/28/2006 1:39:09 PM PST by Palladin ("Governor Lynn Swann."...it has a nice ring to it!)
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To: SoothingDave

Thanks for providing all (who take the time to read it) the latest information on Heinz company ownership.


38 posted on 02/28/2006 1:39:39 PM PST by UCANSEE2 (and miles to go before I sleep.)
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To: All
H.J. Heinz Company Brands include:

Bagel Bites, Boston Market,Catelli,Chef Francisco,Classico,Delimex,Go Ahead!,Guloso,Heinz,John West,Ore-Ida,Orlando,Plasmon,Smart Ones,Wattie's,Weight Watchers,Wyler & Yoshida

Heinz owns companies from Australia to Zimbabwe. I doubt a few Freepers boycotting them will slow them down.

However, you can look up many companies and who owns what "brands" at:

http://www.responsibleshopper.org/

A very helpful tool if you're serious about where you want to spend your money.

39 posted on 02/28/2006 1:51:21 PM PST by Diana in Wisconsin (Save The Earth. It's The Only Planet With Chocolate.)
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To: Diana in Wisconsin

I think that is the Boston Market frozen foods. Boston Market restaurants are owned by McDonald's out here on the West coast.


40 posted on 02/28/2006 1:55:00 PM PST by Drago
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To: Drago

You're right. Heinz has a ton of frozen foods brands and McDonald's owns the restaurants headquartered out of Golden, CO:

http://www.responsibleshopper.org/basic.cfm?cusip=580135


41 posted on 02/28/2006 2:02:30 PM PST by Diana in Wisconsin (Save The Earth. It's The Only Planet With Chocolate.)
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To: UCANSEE2
Thanks for providing all (who take the time to read it) the latest information on Heinz company ownership.

It's not the latest information, it's the same information it was in 2004 when certain people got all bent out of shape about John Kerry and his wife.

It's symbolism over substance. You'd need a time machine to prevent Teresa Heinz from being rich, and boycotting a good company to make a futile political point only hurts honest working people.

SD

42 posted on 02/28/2006 2:18:15 PM PST by SoothingDave
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To: Proud_USA_Republican

Very good one Proud.


43 posted on 02/28/2006 2:39:11 PM PST by Joe Boucher (an enemy of islam)
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To: SoothingDave

Yes they will! They will make ME feel better!!


44 posted on 02/28/2006 2:48:31 PM PST by LittleBoPeep
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To: Diana in Wisconsin

Boycotts never work... we know that.

No problem. They make ME feel better.


45 posted on 03/02/2006 3:16:59 PM PST by lOKKI (You can ignore reality until it bites you in the ass.)
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To: lOKKI

Heinz is the only good catsup or is it catshup or is it catchup?


46 posted on 03/02/2006 3:22:34 PM PST by AGreatPer
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To: new yorker 77

Psst. Best not to post that copyright notice at the bottom.


47 posted on 03/02/2006 3:24:06 PM PST by 1rudeboy
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To: lilylangtree

bttt


48 posted on 03/02/2006 3:25:26 PM PST by ConservativeMan55 (DON'T FIRE UNTIL YOU SEE THE WHITES OF THE CURTAINS THEY ARE WEARING ON THEIR HEADS !)
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To: lOKKI

Did you check out the link I provided to others? It's amazing to me who owns what these days:

http://www.responsibleshopper.org


49 posted on 03/02/2006 3:29:35 PM PST by Diana in Wisconsin (Save The Earth. It's The Only Planet With Chocolate.)
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To: AGreatPer

"Heinz is the only good catsup or is it catshup or is it catchup?"


Actually, I checked the spelling before I posted... There are several possible spellings - all "correct":

"When Heinz introduced commercial ketchup to American kitchens it became so popular that other manufacturers rushed to catch-up to the ketchup craze. Soon there were Ketchup, Catsup, Catchup, Katsup, Catsip, Cotsup, Kotchup, Kitsip, Catsoup, Katshoup, Katsock, Cackchop, Cornchop, Cotpock, Kotpock, Kutpuck, Kutchpuck and Cutchpuck. All were tomato based and bottled and vied to become a household word. Only 3 major brands remained to steal the spotlight...Heinz Ketchup, Del Monte Catsup, and Hunts, who could not decide on a spelling and bottled under the names Hunts Catsup (east of the Mississippi), Hunts Ketchup (west of the Mississippi)...


http://www.globalgourmet.com/food/sleuth/0799/
KETCHUP VERSUS CATSUP

http://www.worldwidewords.org/qa/qa-ket2.htm

More of the same....
http://www.antimoon.com/forum/2003/3291.htm


50 posted on 03/05/2006 7:09:54 AM PST by lOKKI (You can ignore reality until it bites you in the ass.)
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