Heinz Net Income Rises

NEW YORK - Feb 24/09 - SNS -- H. J. Heinz Company reported net income of U.S. $242.3 million on sales of $2,414.6 million during the third quarter ending Jan 28, compared to a net of $218.5 million on sales of $2,610.9 million during the same three month period las year.

This lifted net earnings so far this fiscal year to $747.9 million on sales of $7,610.3 million, compared to net earnings of $650.9 million on sales of $7,382.5 million during the same nine month period last year.

Excluding the impact of foreign exchange, sales grew 3.9%, driven by ketchup, infant nutrition and soup in the UK. Overall third-quarter sales declined 7.5% from the prior year due to the impact of foreign exchange. Lower volume for the quarter reflected the timing impact of overlapping price increases, a weak economic environment and Heinz's strategic decision not to match deep discounts in certain categories.

Organic sales in Europe grew 5% and 9% in Emerging Markets as both segments benefited from cost-justified pricing actions. Organic sales declined in the U.S. Consumer Products, U.S. Foodservice and Asia/Pacific segments largely reflecting the timing impact of overlapping price increases, the recessionary environment, and competitive promotional pricing in a number of categories.

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