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HEINZ ANNOUNCES SECOND QUARTER RESULTS

 HEINZ ANNOUNCES SECOND QUARTER RESULTS
 PITTSBURGH, Dec. 10 /PRNewswire/ -- H.J. Heinz Company (NYSE: HNZ)


today reported net income of $122,821,000 or 46 cents per share for the three month period ended Oct. 30, 1991 compared to $139,770,000 or 52 cents per share for the same period last year.
 The 11.5 percent decrease in earnings per share and 12.1 percent decrease in net income reflect the company's utilization of the first quarter gain from the sale of The Hubinger Company to increase marketing and trade spending and to accelerate cost reduction initiatives.
 Sales for the quarter were $1,592,312,000, down $52,268,000 or 3.2 percent against prior year sales of $1,644,580,000. The decline is primarily attributable to the strengthening of the U.S. dollar against overseas currencies.
 On Aug. 23, 1991, H.J. Heinz Company acquired JLFoods Inc., one of North America's major suppliers to the food industry, for a net cash consideration of approximately $525 million. The financial statements for the quarter reflect the results of JLFoods from the acquisition date and also reflect the loss of income from Caribbean Restaurants Inc. and The Hubinger Company which were sold in April and June 1991, respectively.
 Net income for the six months was $377,247,000 or $1.41 per share compared to $283,007,000 or $1.06 for the same period last year. The results include a pre-tax gain of $221 million recorded in June 1991 as a result of the sale of The Hubinger Company.
 Sales for the year to date were $3,092,563,000, down $111,260,000 or 3.5 percent from last year, primarily due to the divestiture of The Hubinger Company and Caribbean Restaurants Inc. and the strengthening of the U.S. dollar against overseas currencies.
 Heinz Chairman, President and Chief Executive Officer Dr. Anthony J. F. O'Reilly said: "A quiet restructuring continues to take place at Heinz. The results of the second quarter reflect our previously announced intention of utilizing the gain from the sale of The Hubinger Company to increase marketing support for our major brands and to accelerate our cost reduction initiatives in relentless pursuit of low cost operator status. Marketing programs are in place and will take effect in the balance of the fiscal year. We look forward to increasing sales momentum, strengthening of our brand shares and full-year growth at earnings per share of approximately 12 percent."
 H.J. HEINZ COMPANY
 Consolidated Statement of Income
 (000's omitted - except for per share amounts)
 Second Quarter Ended Six Months Ended
 Oct. 30, Oct. 31, Oct. 30, Oct. 31,
 1991 1990 1991 1990
Sales $1,592,312 $ 1,644,580 3,092,563 3,203,823


Cost of
 products sold 978,760 1,018,879 1,915,299 1,965,329
Gross profit 613,552 625,701 1,177,264 1,238,494
Selling, general and administrative expenses 386,998
 368,254 737,725 714,946


Gain on sale of
The Hubinger Co. -- -- 221,459 --
Operating income 226,554 257,447 660,998 523,548
Interest income 13,691 8,149 23,996 17,094
Interest expense 35,513 34,467 62,685 68,873
Other expenses, net 6,634 6,833 13,847 14,568
Income before income taxes 198,098 224,296 608,462
 457,201


Provision for
 income taxes 75,277 84,526 231,215 174,194
Net income 122,821 139,770 377,247 283,007
Net income per share $.46 $.52 $1.41 $1.06
Dividends per share $.27 $.24 $.51 $.45
 /delval/
 -0- 12/10/91
 /CONTACT: D. Edward I. Smyth, 412-456-5780, or Debora S. Foster, 412-456-5778, both of H.J. Heinz Company; or John E. Kennedy or L. Michael Kelly Jr., 412-456-3586, or 412-456-3840, both of Ketchum Public Relations for H.J. Heinz Company/
 (HNZ) CO: H.J. Heinz Company ST: Pennsylvania IN: FOD SU: ERN


CD -- PG003 -- 0844 12/10/91 08:31 EST
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Publication:PR Newswire
Date:Dec 10, 1991
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