Beverly Hills, CA 11/25/2009 2:23:00 AM
Heinz Lags Domestically; Thrives in Emerging Market
Financial World News Update by Equities Magazine
H.J. Heinz Co. says business is flourishing in emerging markets despite the recession weighing heavily on U.S. and European sales over the second quarter. Shoppers began hunting out the lowest priced products rather than indulging in bran name goods domestically. Heinz reported on Tuesday that quarterly profits have dropped 16 percent from this time last year when currency shifts drove up shares, but Heinx has plans to invest deeply in market to stimulate growth in its lethargic markets. Heinz brought in $231.4 million, or 73 cents per share, for the second quarter, down 14 cents per share over the year from $276.7 million, when Heinz was receiving 87 cents per share. The prior year's results included a gain of 18 cents per share related to currency hedging. The Pittsburgh based company is optimistic about making up for losses through a variety of means. They intend to bolster sales through increased marketing, spending 15 percent this year as well as reaping the benefit of the weak dollar. Heinz believes more brand saturation will goad domestic sales. Elsewhere, they remain confidence in their performance in emerging markets. Analysts are optimistic as well, predicting a full-year profit of $2.72 per share. Heinz believes they can out outperform forecasts in the future increasing its operations out look to a range of $2.72-$2.82 for the 2010 fiscal year. Perhaps their optimism is due to a number of new products planned for release in the new year, although nothing further was disclosed. Shares of the company fell 15 cents to $43.02 in midday trading Tuesday. About EQUITIES: Since 1951, EQUITIES Magazine has been a leading media company providing business editorial content designed to serve the needs of business leaders, professionals, institutional investors and retail investors. We are focused on business and the business of making money, not on lifestyle subjects. We publish original reporting in print and on the Internet at www.equitiesmagazine.com, as well as select content at http://www.nasdaq.com/. For 28 years we have hosted our own branded investor conferences that connect public company CEO’s with our loyal readers in the investment community. Equities is gearing up for conferences in New York City and Newport Beach, CA. If you’re a company looking to present before our 300 registered investors or an interested investor looking to expand your portfolio contact us at: events@equitiesmagazine.com Sign up for a free one-year subscription to EQUITIES Magazine
