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Heinz Up after Strong Results

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H.J. Heinz Company (NYSE:HNZ) shares are rising over 3% in morning trade after the company reported quarterly revenues and profits that exceeded analyst estimates. Sales in the fiscal quarter ended January 25, 2012 grew 7.2% to $2.92 billion exceeding analyst forecasts.

Adjusted net income was rose 13.1% to 95 cents per share. This handily exceeded analyst estimates that called for 85 cents per share in profits. The results were led by dynamic growth in Emerging Markets and higher Global Ketchup sales. The company also affirmed its previous fiscal 2012 guidance. It expects its annual earnings to range between $3.32 and $3.34 per share.

Emerging Markets were the biggest growth driver in the quarter as they delivered organic sales growth of 19.8% (39.7% reported) and generated more than 20% of the Company’s total sales in the quarter.


Heinz Chairman, President and CEO William R. Johnson said: “Heinz delivered sales growth of more than 7% and higher EPS in the third quarter while continuing to invest in marketing, new capabilities and productivity initiatives that will make the Company even more competitive in a rapidly changing world. Our strong performance was fueled by our accelerating growth in Emerging Markets and our strength in Ketchup and Sauces, as well as solid growth in our Top 15 brands. Heinz delivered our 27th consecutive quarter of organic sales growth with each of our operating segments contributing.”

“Heinz has been focused this year on reducing fixed costs by increasing manufacturing efficiency, reducing overcapacity and streamlining our operations. Through Project Keystone and the creation of our first centralized European supply chain hub, we are establishing the foundation for long-term productivity across the supply chain while also enabling better leverage of our global scale,” Mr. Johnson said.

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edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.


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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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