Heinz Profits Expand

NEW YORK - Feb 27/07 - SNS -- H. J. Heinz Company reported a net income of U.S. $219 million on sales of $2,295 million for the third quarter ending January 31, compared to a bet of $117 million on sales of $2,187 million the same three month period last year.

This lifted net income for the first nine months of the fiscal year to $605 million on sales of $6,587 million, compared to a net of $478 million on sales of $6,244 million during the same period of the previous fiscal year.

Higher sales volumes were mainly driven by the North American Consumer Products, Italian infant nutrition and Australian businesses. Approximately one third of the quarter's volume increase was driven by Heinz's emerging RICIP markets of Russia, India, China, Indonesia and Poland.

Heinz said gross profit margin in the third quarter increased to 37.1% from the adjusted gross profit margin in 2006 of 36.5%, reflecting higher pricing and productivity initiatives, partially offset by commodity cost increases. Gross profit benefited from higher volume and favorable foreign exchange, partially offset by the impact of divestitures.

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