Chicago, June 14: Ketchup maker HJ Heinz said quarterly net earnings fell 54%, hurt largely by costs for the recent spin-off of some underperforming units. In addition, poor results on frozen foods and some new products weighed on earnings and sent Heinz shares down 5%, analysts said. Heinz posted a net profit of $102.6m, or 29 cents a share, in the fiscal fourth quarter ended April 30, after special items that reduced earnings by $82.2m.
The company earned $223.5m, or 63 cents a share, in the same period last year. Heinz’s stock touched a low of $32.65 on Thursday, after some six weeks of gain, as investors had hoped the company would provide a better outlook than expected. The stock fell 58 cents, or 1.69%, to close at $33.82 on the New York Stock Exchange.
The Pittsburgh-based company reported higher sales in Europe and the Asia-Pacific region. Heinz, which records about 60% of its sales outside the US, benefited from the weaker dollar, which means revenue booked outside US translates to higher profits. . It also implies that goods cost less when purchased in other currencies, which can spur more sales. “Heinz seems like a series of endless excuses,” said William Leach, Bank of America securities analyst. Bureau Report