Heinz (HNZ) 1Q Profit Increased 13%

September 1, 2010, 12:21 PM

H.J. Heinz Co. (NYSE: HNZ) said on Wednesday that its first-quarter net income increased 13 percent as business emerged over and strong sales of pantry items such as ketchup and Classico pasta sauces.

Heinz announced early Wednesday that it earned $240.4 million, or 75 cents per share, for the most recent quarter. That’s up from $212.6 million, or 67 cents per share, a year prior. Revenue for Heinz was up 1.6 percent to $2.48 billion.

Analysts surveyed by Thomson Reuters expected the company to earn 73 cents per share, which it had surpassed. But Heinz came in short, only earning $2.48 Billion for revenue, analysts predicted $2.53 Billion.

The company gained volume in North America but its results were lacking due to high discounting of products. North America prices dropped 2.7% even though the company had an increase in promotions. During the Summer. Walmart had Heinz Ketchup at $1 which may have helped increase the companies volume the past few months.

In the Heinz’s Asia/Pacific region, sales were up  19 percent to $558 million and volume jumped approximately 7 percent. Revenue rose 4.8 percent to $762 million while volume increased 5.3 percent as consumers bought more ketchup, pasta sauces and frozen entrees in North America.

Shares of Heinz were down 11 cents to $46.13 this morning.

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