Heinz Profits Decline

NEW YORK - Jun 1/06 - SNS -- H.J. Heinz Company reported net income of U.S., $167.9 million on sales of $2,399.7 million for the fourth quarter ending May 3, compared to a net of $20-6.5 million on sales of $2,230.5 million during the same three month period of the previous fiscal year.

This lifted net income for the 2006 fiscal year to $645.6 million on sales of $8,643.3 million, compared to a net of $742.7 million on sales of $8,103.5 million during the previous fiscal year.

Discussing its results, Heinz said volume performance was strong in North America, Australia and in the Italian infant feeding business. That was partially offset by softness in frozen food category in the U.K. Acquisitions, net of divestitures increased sales another 4.4%. These increases were partially offset by an unfavorable foreign exchange impact of 1.5%.

Sales for the fourth quarter increased 7.6% (10.7% on a constant currency basis). Volume increased 7.8%, lead by a 10.6% increase in North American Consumer Products and 22.9% in Australia. Pricing decreased sales slightly, as improvements in North America, Latin America and Indonesia were offset primarily by declines in the U.K. Acquisitions, net of divestitures, increased sales by 3.4%. Foreign exchange translation rates decreased sales by 3.1%.

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