H.J. Heinz off to strong start

H.J. Heinz announced an 11 percent rise in first-quarter profits today, after double-digit sales growth in North America and Europe.  ┬á For the three months ending July 30, Pittsburgh-based Heinz declared earnings of $229 million (72 cents per share), up from $205.3 million (63 cents per share) in the first quarter last year.┬á┬á Revenue increased 14.9 percent to $2.58 billion from $2.25 billion during the same period last year. Analysts were expecting earnings of 66 cents per share on revenue of $2.46 billion for the quarter, according to Thomson Reuters.┬á┬á Heinz said the results were fueled by double-digit sales growth in North America and Europe, 35.8 percent sales growth in emerging markets (Russia, Poland, the Czech Republic, Indonesia, China, India, South Africa, the Middle East and Latin America) and almost 30 percent growth in HeinzÔÇÖs infant/nutrition category.┬á┬á ÔÇ£Heinz is off to a strong start in the fiscal year, with excellent growth in first-quarter sales, operating income and EPS,ÔÇØ said chairman, president, and CEO William R. Johnson. ÔÇ£We achieved record organic sales growth, reflecting the strength of our top 15 brands, dynamic growth in our emerging markets, higher marketing investments and benefits from increased focus on products for healthier lifestyles.ÔÇØ ┬á┬á As a result of the outstanding first quarter, Heinz raised its fiscal 2009 EPS expectations to the upper half of its previously announced range of $2.83 to $2.91. The new EPS range is projected to be $2.87 to $2.91. ÔÇ£As our strong performance in the first quarter demonstrates, Heinz is on track to deliver another year of impressive growth,ÔÇØ Johnson said. ┬á┬á In its earnings statement, Heinz cited its new microwaveable potato product Steam nÔÇÖ MashÔäó from its Ore-Ida brand as one of the highlights of first quarter marketing. ÔÇ£This innovative new product eliminates the time-consuming work of scrubbing, peeling and chopping potatoes,ÔÇØ the statement said. ÔÇ£Consumers simply steam the potatoes in the microwave and then add what they want to customize the recipe.ÔÇØ ┬á┬á Consumer confidence in the US cannot be as depressed as everyone thinks, if microwaveable potatoes are flying off the shelves, but this writer has no intention of throwing away his potato peeler.   Read the H.J.Heinz statement in full here.  ┬á┬á┬á*┬á┬á┬á┬á┬á┬á┬á┬á┬á *┬á┬á┬á┬á┬á┬á┬á┬á┬á *┬á