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HEINZ THIRD-QUARTER EPS UP 44 PERCENT

 PITTSBURGH, March 9 /PRNewswire/ -- H.J. Heinz Company (NYSE: HNZ) announced today a 44 percent increase in earnings per share for the quarter ended Jan. 27, 1993.
 Earnings per share were 62 cents, compared to 43 cents for the same period last year. Net income was $162.3 million, compared to $115.3 million last year.
 The increase in earnings is primarily attributable to increased sales, the acquisition of Wattie's Limited in New Zealand, the benefits from restructuring costs that were incurred last year and a lower effective tax rate this year.
 Sales for the quarter increased 9 percent to $1,766.7 million from $1,622.4 million. Third-quarter operating income rose 33 percent from $215.0 million to $285.4 million.
 The increase in sales was due to volume gains (3 percent), the acquisition of Wattie's Limited (7 percent) and price increases (2 percent). Partially offsetting these increases was the adverse impact of the strengthening dollar against most currencies, primarily the pound sterling and the Italian lira.
 Volume increases occurred in many products, including Heinz baby food, Weight Watchers brand entrees and desserts, various pet food products, Ore-Ida foodservice potatoes and Heinz foodservice ketchup. Price increases were noted in Heinz baby food, Weight Watchers meeting operations and Heinz soup.
 While forecasting record earnings for the full year and the fourth quarter, Heinz Chairman, President and Chief Executive Officer Anthony J.F. O'Reilly said that the dramatic currency fluctuations caused by the withdrawal of the United Kingdom and Italy from the European Monetary System, sustained marketing expenditures in certain select markets, and unusually adverse weather conditions affecting Weight Watchers meeting operations would be expected to result in a revised full-year earnings per share of approximately $2.50 and fourth-quarter growth in earnings per share of approximately 30 percent.
 For the nine-month period, net income was $460.3 million, down 7 percent from $492.6 million last year (which included a pretax gain of $221.5 million arising from the sale of The Hubinger Company).
 Sales for the nine-month period were $5,069.7 million, up $354.8 million or 8 percent from last year. The growth was primarily the result of volume gains (4 percent) and the acquisition of Wattie's Limited. Volume increases were noted in many of the company's core products, including Heinz baby food, Weight Watchers brand entrees, various pet food products and StarKist tuna.
 H.J. HEINZ COMPANY
 Consolidated Statements of Income
 (000's omitted - except for per share amounts)
 Third Quarter Ended Nine Months Ended
 Jan. 27, Jan. 29, Jan. 27, Jan. 29,
 1993 1992 1993 1992
 Sales $1,766,712 $1,622,358 $5,069,712 $4,714,921
 Cost of
 products sold 1,065,531 1,017,422 3,114,734 2,932,721
 Gross profit 701,181 604,936 1,954,978 1,782,200
 Selling, general
 and administrative
 expenses 415,805 389,949 1,148,904 1,127,674
 Gain on sale of
 The Hubinger Co. -- -- -- 221,459
 Operating income 285,376 214,987 806,074 875,985
 Interest income 7,589 13,858 21,567 37,854
 Interest expense 43,330 40,710 107,046 103,395
 Other expense, net 2,343 6,964 23,219 20,811
 Income before
 income taxes 247,292 181,171 697,376 789,633
 Provision for
 income taxes 84,980 65,834 237,108 297,049
 Net income 162,312 115,337 460,268 492,584
 Net income per share $.62 $.43 $1.77 $1.84
 Cash dividends
 per share $.30 $.27 $.87 $.78
 /delval/
 -0- 3/9/93
 /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/
 (HNZ)


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

DM -- PG003 -- 4346 03/09/93 08:04 EST
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Date:Mar 9, 1993
Words:652
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