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H.J. HEINZ COMPANY REPORTS EARNINGS

H.J. HEINZ COMPANY REPORTS EARNINGS
    PITTSBURGH, June 15 /PRNewswire/ -- H.J. Heinz Company (NYSE: HNZ) reported today that both net income and earnings per share reached record levels for the year ended April 29, 1992.
    Net income for the year was $638,295,000, a 12.4 percent increase or $70,296,000 from last year's net income of $567,999,000.  Net income per share increased 12.7 percent or $0.27 from $2.13 to $2.40 for the year ended April 29, 1992.  The results include a $221 million pre-tax gain on the sale of The Hubinger Company in June 1991.
    Sales for the year totaled $6,581,867,000, down $65,251,000 or 1.0 percent from last year's record sales of $6,647,118,000.  Sales were favorably impacted by strong overseas price increases and the acquisition of JLFoods in August 1991, but were negatively affected by the strengthening of the U.S. dollar against certain foreign currencies, the June 1991 sale of The Hubinger Company, and the divestiture of Caribbean Restaurants Inc. in April 1991.  Volume for the full year remained consistent with the prior year.
    Sales for the fourth quarter increased 1.6 percent or $28,657,000 to $1,866,946,000 from $1,838,289,000.  The sales gain came primarily from increased volume, up 2.3 percent in the period.  Strong volume gains were registered for Weight Watchers brand frozen entrees and desserts, StarKist tuna, Heinz baby food, Heinz ketchup and Weight Watchers meetings.  The stronger U.S. dollar exchange rate adversely impacted sales by 2.1 percent.
    Net income for the quarter declined $10,360,000 or 6.6 percent from $156,071,000 last year to $145,711,000 this year.  The decline is primarily due to pre-tax restructuring charges in excess of $50 million at both domestic and overseas locations and increased marketing support.  Net income per share declined 3.4 percent from 58 cents to 56 cents.
    During the fiscal year the company adopted the provisions of Statement of Financial Accounting Standards No. 109, "Accounting for Income Taxes."  The adoption did not have a material impact on the results of operations.
    Heinz Chairman, President and Chief Executive Officer Anthony J.F. O'Reilly said:  "I am very pleased with the results for the year, which despite turbulent market conditions, both domestic and foreign, turned out as we anticipated at our stockholders' meeting last September.  The replacement of The Hubinger Company by JLFoods took the company out of a commodity business into a value-added food business with excellent growth prospects. The acquisition has performed ahead of expectations.
    "The Heinz Company continued with its past policy of using 'windfall' profits, such as that arising from the sale of Hubinger, to position itself for future profit growth.  During the year, our brands received additional marketing support, which resulted in the strong volume and market share gains reflected in the fourth-quarter financial results.  In addition, significant restructuring charges totaling approximately $90 million were incurred at both domestic and overseas locations in our continual pursuit of low-cost operator status.  We are also encouraged by the success of our task forces in identifying new cost-reduction opportunities for fiscal '93 and beyond.  As a result, the company is well-positioned to continue to improve its profit performance in the future."
                        H.J. HEINZ COMPANY
                  Consolidated Statement of Income
           (000's omitted - except for per share amounts)
                     Fourth Quarter Ended    Twelve Months Ended
                      April 29     May 1      April 29     May 1
                       1992        1991        1992        1991
    Sales           $1,866,946  $1,838,289  $6,581,867  $6,647,118
    Cost of
     products sold   1,170,095   1,119,188   4,102,816   4,063,423
    Gross profit       696,851     719,101   2,479,051   2,583,695
    Selling, general &
     adm. exps.        466,321     443,594   1,593,995   1,546,592
    Gain on sale of
     The Hubinger Co.       --          --     221,459          --
    Operating income   230,530     275,507   1,106,515   1,037,103
    Interest income      8,753      10,837      46,607      34,967
    Interest expense    31,553      35,474     134,948     137,592
    Other exps., net    13,018      10,125      33,829      31,465
    Income before
     income taxes      194,712     240,745     984,345     903,013
    Provision for
     income taxes       49,001      84,674     346,050     335,014
    Net income      $  145,711  $  156,071  $  638,295  $  567,999
    Net inc. per share    $.56        $.58       $2.40       $2.13
    Dividends per share   $.27        $.24       $1.05        $.93
    -0-             06/15/92
    CONTACT:  D. Edward I. Smyth, vp-corporate affairs, 412-456-5780, or Debora S. Foster, 412-456-5778, both of H.J. Heinz Company; or John E. Kennedy, 412-456-3586, or L. Michael Kelly Jr., 412-456-3840, both of Ketchum Public Relations
    (HNZ) CO:  H.J. HEINZ COMPANY IN:  FOD SU:  ERN ST:  PA -- PG002 -- X358  06/15/92
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Date:Jun 15, 1992
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