Heinz 4Q income slows
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June 14, 2001: 8:14 a.m. ET
Ketchup maker's results in line with forecasts, but pressured by marketing costs
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NEW YORK (CNNfn) - Foodmaker H.J. Heinz Co. on Thursday reported an 18 percent drop in fiscal fourth-quarter profit excluding one-time items -- although it matched Wall Street expectations -- in a reflection of higher marketing, advertising and energy costs.
The company best known for its ketchup and sauces also warned that first-quarter earnings would miss expectations. But it anticipates a recovery by the end of fiscal 2002, with profit within the range of estimates.
Pittsburgh-based Heinz said it now anticipates first-quarter earnings of 60 cents to 62 cents a share, below the Wall Street consensus forecast of 65 cents a share, according to earnings tracker First Call. The company blamed negative currency transactions related to the strong U.S. dollar, high energy costs and softness in the quick-serve segment of its U.S. foodservice business.
However, Heinz said it expects fiscal 2002 earnings to be between $2.70 and $2.80 a share, within the range of Wall Street's forecast of $2.73 a share, according to First Call.
For the quarter ended May 2, Heinz (HNZ: Research, Estimates) earned $185.7 million, or 53 cents a share, excluding one-time items. That was down from $226.4 million, or 63 cents, a year earlier, but in line with the First Call consensus.
Fourth-quarter sales rose 4 percent to $2.69 billion.
Including items, Heinz reported a loss of $170.5 million, or 49 cents a share, compared with net income of $97.3 million, or 27 cents a share. The special items in the fourth quarter included a net pretax charge of $493.4 million, or $1.02 per share after taxes. The year-earlier results included a $200 million pretax restructuring charge.
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Heinz reported fiscal 2001 profit of $896.4 million, or $2.55 a share, compared with income of $905.7 million, or $2.52 a share, in the prior year. Analysts expected full-year earnings of $2.54 a share, according to First Call.
Heinz shares dropped 93 cents to $41.50 in before-hours trading Thursday after dipping 12 cents Wednesday.
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H.J. Heinz
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