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 PITTSBURGH, Sept. 7 /PRNewswire/ -- H.J. Heinz Company (NYSE: HNZ) announced today a 7.3 percent increase in earnings per share before the cumulative effect of an accounting change for certain post-retirement benefits recorded in the first quarter last year.
 Earnings per share before the cumulative effect of the accounting change for the first quarter ended July 28, 1993, were $0.59 per share compared to $0.55 per share last year. Income before the cumulative effect of the accounting change increased $8,389,000 to $152,179,000 this year compared to $143,790,000 last year. Net income per share for the first quarter was $0.59 per share compared to $0.04 per share (after the accounting change) for the same period last year.
 Sales for the first quarter totaled $1,583,312,000 this year, up $18,871,000 or 1.2 percent from $1,564,441,000 last year. Volume was stable compared to the first quarter last year. Volume gains were noted in various Heinz Pet Products brands, Ore-Ida foodservice potatoes and at many of the company's overseas operations, particularly with brands in the U.K., Italy, Spain and Central Europe. These gains were offset by volume declines in StarKist tuna, Weight Watchers brand frozen foods and Heinz grocery ketchup, where lower volume shipments facilitated deloading and reduction of trade inventories.
 Price increases totaled 1.3 percent in the first quarter and occurred in many of the company's core products. The acquisition of Wattie's Limited increased sales 6.3 percent but was offset by the adverse impact of the strengthening U.S. dollar against most foreign currencies.
 Commenting on the results, Heinz Chairman, President and Chief Executive Officer Anthony J.F. O'Reilly said: "I am pleased with this quarter's results, given the current economic environment in the United States and overseas. Our restructuring initiatives over the last two years have enabled us to strengthen our competitive position in the industry, increase market shares for many of our brands and provide a strong foundation on which to build future profitability."
 Consolidated Statements of Income
 (000's omitted - except for per share amounts)
 Three Months Three Months
 Ended Ended
 July 28, July 29,
 1993 1992
 Sales $1,583,312 $1,564,441
 Cost of products sold 963,338 962,939
 Gross profit 619,974 601,502
 Selling, general and
 administrative expenses 346,761 342,437
 Operating income 273,213 259,065
 Interest income 8,513 7,622
 Interest expense 39,168 30,533
 Other expenses, net 8,375 10,069
 Income before income taxes
 and cumulative effect of
 accounting change 234,183 226,085
 Provision for income taxes 82,004 82,295
 Income before cumulative
 effect of accounting change 152,179 143,790
 Cumulative effect of
 FAS No. 106 adoption -- (133,630)
 Net income $ 152,179 $ 10,160
 Income per share:
 Income before cumulative
 effect of accounting change $.59 $.55
 Cumulative effect of
 FAS No. 106 adoption -- ($.51)
 Net income per share $.59 $.04
 Cash dividends per share $.30 $.27
 Note: Fiscal 1993 results have been restated to reflect the adoption of Statement of Financial Accounting Standards (FAS) No. 106 (Accounting for Post-Retirement Benefits other than Pensions).
 -0- 9/7/93
 /CONTACT: D. Edward I. Smyth, vp-corporate affairs, 412-456-5780, or Debora S. Foster, general manager, corporate communications, 412-456-5778, both of H.J. Heinz; or John E. Kennedy or L. Michael Kelly Jr. of Ketchum Public Relations, 412-456-3586 or 412-456-3840, for H.J. Heinz/

CO: H.J. Heinz Company ST: Pennsylvania IN: FOD SU: ERN

KC -- PG002 -- 9159 09/07/93 07:57 EDT
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Publication:PR Newswire
Date:Sep 7, 1993

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