HNZ

Heinz

NYSE

Add Alert

HNZ

Heinz

NYSE

Add Alert

Join the InvestorsHub Community

Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.

Live Updating

lucmariepierre Free

07/08/13 3:19 PM

Post #47

Re: #46: @DewDiligence - Buyout expected to close on June 7: #msg-88593106.

I think barrack Obama is better in economy than georges bush
But this last could have been a better CEO

DewDiligence PremiumMember

06/03/13 4:50 PM

Post #46

Buyout expected to close on June 7: #msg-88593106.

Axeblau

02/19/13 10:21 AM

Post #45

Who else recognizes this major short?

wall-street1 Free

02/18/13 2:45 PM

Post #44

$HNZ sees huge gains, expected to continue
http://www.wall-street.com/h-j-heinz-set-for-acquirement-by-berkshire-hathaway-hnz-brk-a/

DewDiligence PremiumMember

02/14/13 3:48 PM

Post #43

WSJ write-up on the HNZ buyout:

#msg-84610907

Unless the deal somehow falls through (which is very unlikely, IMO), this will be my last post on this board. Congratulations to HNZ longs!

DewDiligence PremiumMember

02/14/13 9:28 AM

Post #41

Congratulations to HNZ shareholders!

declaes

02/14/13 8:25 AM

Post #40

Buffett koopt Heinz

DewDiligence PremiumMember

09/26/12 2:27 PM

Post #39

I sold my position today; please see #msg-79958491 if interested in the rationale.

DewDiligence PremiumMember

09/18/12 11:42 AM

Post #38

Re: #37: @DewDiligence - David Moran, EVP of European operations, exercised and

All told, four insider sales in the past three weeks have amounted to almost $12M of stock:

#msg-79675191 EVP, Europe ($4.7M) 9/12/12
#msg-79458619 SVP, Finance ($4.0M) 9/4/12
#msg-79458394 CFO ($1.3M) 9/6/12
#msg-79458546 Gen Counsel ($1.8M) 8/31/12

I don’t like it.

DewDiligence PremiumMember

09/18/12 11:29 AM

Post #37

Re: #36: @DewDiligence - Ed McMenamin, SVP Finance, exercised and sold $4M

David Moran, EVP of European operations, exercised and sold $4.7M worth of stock at $56 and change on 9/12/12:

http://www.sec.gov/Archives/edgar/data/46640/000114036112040470/xslF345X03/doc1.xml

The sale represented about 50% of Moran’s pre-sale (and post-sale) shareholding.

DewDiligence PremiumMember

09/11/12 5:42 PM

Post #36

Re: #35: @DewDiligence - Bobby Nicholas, General Counsel, exercised and sold $1.8M

Ed McMenamin, SVP Finance, exercised and sold $4M (!) worth of stock at about $56 on 9/4/12:

http://www.sec.gov/Archives/edgar/data/46640/000114036112039545/xslF345X03/doc1.xml

This sale represented about 50% of McMenamin’s pre-exercise holding.

DewDiligence PremiumMember

09/11/12 5:39 PM

Post #35

Re: #34: @DewDiligence - Art Winkleblack, CFO, exercised and sold $1.3M worth

Bobby Nicholas, General Counsel, exercised and sold $1.8M worth of stock at $55 and change on 8/31/12:

http://www.sec.gov/Archives/edgar/data/46640/000114036112039548/xslF345X03/doc1.xml

This sale represented a whopping 39% of Nicholas’s pre-exercise holding.

DewDiligence PremiumMember

09/11/12 5:32 PM

Post #34

Art Winkleblack, CFO, exercised and sold $1.3M worth of stock at $56 on 9/6/12:

http://www.sec.gov/Archives/edgar/data/46640/000114036112039788/xslF345X03/doc1.xml

This sale represented 12% of Winleblack’s pre-exercise holding.

DewDiligence PremiumMember

08/30/12 4:52 PM

Post #33

Re: #32: @DewDiligence - New all-time high on pre-announced FY1Q13 EPS: #msg-78995757.

Why HNZ is growing so fast in emerging markets: #msg-79112293.

DewDiligence PremiumMember

08/28/12 11:18 AM

Post #32

New all-time high on pre-announced FY1Q13 EPS: #msg-78995757.

DewDiligence PremiumMember

07/27/12 5:35 PM

Post #31

Re: #26: @DewDiligence - More sales by Nelson Peltz: #msg-72704972.

Nelson Peltz is almost done selling: #msg-77951352.

DewDiligence PremiumMember

06/15/12 12:02 PM

Post #30

The 10-K for the fiscal year ending 4/29/12 has been filed:

http://www.sec.gov/Archives/edgar/data/46640/000004664012000012/hnz10k42912.htm

DewDiligence PremiumMember

05/24/12 5:32 PM

Post #29

Re: #28: @DewDiligence - HNZ FY4Q12 webcast slides…

HNZ’ FY4Q12 PR with my annotations: #msg-75956453.

DewDiligence PremiumMember

05/24/12 2:26 PM

Post #28

Re: #24: @DewDiligence - FY3Q12 results with my annotations and supporting materials:

HNZ FY4Q12 webcast slides…

Strategic overview (99 slides):
http://www.heinz.com/data/pdf/FY2012Analysts/WRJ_FY12-Analyst-Day.pdf

Financial details for FY4Q12 and full FY2012 (29 slides):
http://www.heinz.com/data/pdf/HeinzAnalystDay_FY12_Financials.pdf

FY2013 outlook (33 slides):
http://www.heinz.com/data/pdf/FY2012Analysts/Winkleblack_FY12-Analyst-Day_FY13-Plan.pdf

Emerging markets slides (109 slides):
http://www.heinz.com/data/pdf/FY2012Analysts/EM-Panel_FY12-Analyst-Day.pdf

Global supply chain (22 slides):
http://www.heinz.com/data/pdf/FY2012Analysts/Ostryniec_FY12-Analyst-Day.pdf

Penny Roger$ Free

04/02/12 12:37 PM

Post #27

DewDiligence PremiumMember

02/29/12 10:24 PM

Post #26

More sales by Nelson Peltz: #msg-72704972.

DewDiligence PremiumMember

02/17/12 4:06 PM

Post #25

Re: #24: @DewDiligence - FY3Q12 results with my annotations and supporting materials:

The growth in emerging markets is superb, even when excluding the effect of acquisitions. This is the impetus for owning the stock as a core long-term holding, IMO.

DewDiligence PremiumMember

02/17/12 4:04 PM

Post #24

Re: #21: @DewDiligence - Heinz Adapts to New Economic Realities

FY3Q12 results with my annotations and supporting materials:

#msg-72266725

DewDiligence PremiumMember

01/20/12 1:14 PM

Post #23

HNZ is off sharply today on fallout from THS:

http://www.marketwatch.com/story/treehouse-foods-hit-by-weak-grocery-sales-2012-01-20

However, the share price remains slightly above where it was following the FY2Q12 earnings report in mid November.

DewDiligence PremiumMember

12/26/11 12:04 PM

Post #22

Re: #20: @DewDiligence - $42M sale by Norman Peltz: #msg-67351725

HNZ has had some pretty heavy insider selling during the past month…

Michael Malone (EVP): $3.2M worth 12/7/11 via option exercise and sale, 33% of temporarily held position following exercise:
http://www.sec.gov/Archives/edgar/data/46640/000114036111056881/xslF345X03/doc1.xml

Art Winkleback (CFO): $2.9M worth 12/1/11 via option exercise and partial sale, 24% of temporarily held position following exercise: http://www.sec.gov/Archives/edgar/data/46640/000114036111055868/xslF345X03/doc1.xml

Theodore Bobby (Gen Counsel): $2.3M worth 12/1/11 via option exercise and sale, 35% of temporarily held position following exercise:
http://www.sec.gov/Archives/edgar/data/46640/000114036111055863/xslF345X03/doc1.xml

DewDiligence PremiumMember

11/18/11 9:53 PM

Post #21

Re: #17: @DewDiligence - FY1Q12 results (with my annotations): #msg-66453995.

Heinz Adapts to New Economic Realities

[Non-GAAP EPS of $0.81 for FY2Q12 (ending 10/31/12) nominally beat expectations, but this was due to a lower tax rate rather than good operating performance. YoY sales increased 8.3% based on 2.9% *lower* volume/mix, 4.4% higher price, 4.4% from acquisitions, and 2.4% from currency. “Organic growth,” which excludes acquisitions and currency, grew 1.9% YoY (the sum of the -2.9% and +4.4 figures above). If not for the 16% sales growth in emerging markets (which now comprise 20% of overall sales), the quarter would’ve been a disaster.

HNZ maintained its FY2012 and tentative FY2013 non-GAAP EPS guidance at $3.24-3.32 and $3.60-3.70, respectively, but this wasn’t enough to avert a 3% sell-off in the share price on Friday. Although the stock is not dirt cheap, I like HNZ as a core consumer-products holding that benefits from The Global Demographic Tailwind. In due course, the success in these markets should easily outweigh the weaker prospects elsewhere, IMO. Slides from the FY2Q12 CC are at http://www.heinz.com/data/pdf/Heinz_Q2FY12.pdf .]

http://finance.yahoo.com/news/Heinz-adapting-new-economic-apf-1237466335.html?x=0&l=1

›By Sarah Skidmore
18-Nov-2011 6:49 p.m. ET

PORTLAND, Ore. (AP) -- H.J. Heinz Co knows that every penny counts in this economy.

The world's biggest ketchup maker's second-quarter profit fell yet narrowly beat expectations on an adjusted basis Friday as it focused on fast-growing emerging markets. But in struggling developed markets such as the U.S. and Europe, the company is shrinking product sizes and selling lower-priced products such as ketchup for 99 cents and beans for around a dollar to appeal to budget-stretched shoppers.

Heinz also announced plans to close three more plants — not identified yet — as it tries to keep its own costs under tighter control.

Consumers are struggling with continued pressure from high unemployment and food costs. As a result, many people are living paycheck to paycheck buying only what they can afford rather than bigger bottles or cans of food that might be more cost-effective.

Heinz said to meet consumer's needs, it is selling pouches instead of bottles of some of its condiments, reintroducing bean products to the U.S. and selling a bag of french fries for family dinners at $1.99.

In Europe, it will soon sell baby food around 1 euro and give free packs of its popular beans and soup to customers who buy four other cans of its products in the U.K., one of the areas hardest hit by the global economic woes.

Compelling price points seem to be best way to connect with today's concerned consumer, Heinz Chairman, President and CEO William R. Johnson said Friday.

"Consumer confidence declined in virtually every market we operate in in the developed world last quarter. It went up in the developing world, where we are really focusing a lot of our efforts," he said.

Heinz's fiscal second-quarter net income fell almost 6 percent as strength in emerging markets and higher prices offset a volume decline.

The company raised prices more than 4 percent to offset higher costs for ingredients and other commodities, which the entire industry is facing. However, as many companies beginning to see, those price hikes can scare away some of the most cost-conscious shoppers and hurt sales volume.

The company also struggled with softer sales in Australia where intense discounting, competition and other issues remain a challenge for the company

Heinz's sales volume fell nearly 3 percent in the quarter. While its sold roughly 2 percent fewer products in the U.S. and Europe and nearly 5 percent less in the Asia-Pacific region due to troubles in Australia, the company saw sales volume jump nearly 6 percent in the rest of the world.

Heinz has already shifted its focus to other markets such as China, Russia and Indonesia as developed markets drag along and these new markets represent an appealing opportunity with their booming population and strong appetite for new products.

Emerging markets were the company's growth engine for the period as it sold more ketchup and sauces in China, ABC soy and chili sauces in Indonesia and Complan nutritional beverages in India.

Heinz reported that its net income fell to $237 million, or 73 cents per share, for the fiscal quarter versus $251.4 million, or 78 cents per share, a year ago. Excluding one-time items related to productivity initiatives, its earned 81 cents per share. That beat the 80 cents per share that analysts surveyed by FactSet expected.

Revenue rose 8 percent to $2.83 billion from $2.61 billion a year ago, but still fell short of analysts' expectations of $2.9 billion.

Heinz, which had already announced plans to improve efficiency, close five plants and shed up to 1,000 jobs globally in fiscal 2012, said Friday that it would close more plants to cope with the difficult operating environment.

The company plans to shut three more of its 80 plants worldwide. The exact locations were not selected yet. As a result, it is eliminating an additional 1,000 jobs.

The Pittsburgh-based company said that despite larger economic challenges, it is on track to meet its financial goals for the year and reiterated its fiscal 2012 earnings guidance, excluding one-time items, of $3.24 to $3.32 per share. Analysts expect $3.34 per share.

Investors appeared to be unsettled by the revenue miss, modest outlook and ongoing struggles with higher costs and developed markets, sending the company's shares down $1.75, or 3.31 percent, to close at $51.07 Friday.‹

DewDiligence PremiumMember

09/22/11 10:06 PM

Post #20

$42M sale by Norman Peltz: #msg-67351725

DewDiligence PremiumMember

09/18/11 11:30 PM

Post #19

Old Ketchup Packet Heads for Trash

http://online.wsj.com/article/SB10001424053111904194604576578691502178606.html

›Heinz 'Dip and Squeeze' Container Aims to Conquer a Major Frustration of Chowing Down in Transit

SEPTEMBER 19, 2011
By SARAH NASSAUER

Some people rip off the corner of the packet with their teeth. Others, while driving, squirt the ketchup directly into their mouth, then add fries. Some forgo fries at the drive-through all together to keep from creating a mess in the car.

After observing these and other "compensating behaviors," H. J. Heinz Co. says it spent three years developing a better ketchup packet.

Heinz says the new "Dip and Squeeze" packets will begin replacing the traditional rectangular ketchup packets later this year at Wendy's Co. restaurants. Smaller chains including Chick-fil-A Inc., Smashburger Master LLC, and International Dairy Queen Inc. agreed this year to carry the packets.

McDonald's Corp. and Burger King Holdings Inc. are testing the packets but declined to comment.

As the name promises, "Dip and Squeeze" ketchup can be squeezed out through one end or the lid can be peeled back for dipping. The red, bottle-shaped packets hold three times the ketchup as traditional packets. The new containers are more expensive than the old sleeves, but Heinz hopes customers learn not to grab more than one or two.

To develop the new packet, Heinz staffers sat behind one-way, mirrored glass, watching consumers in 20 fake minivan interiors putting ketchup on fries, burgers, and chicken nuggets.

To try new prototypes himself, Mike Okoroafor, Heinz vice president of global packaging innovation and execution, bought a used minivan, taking it to local McDonald's and Wendy's drive-throughs to order fries and apply ketchup in the confined space.

"I wasn't going to use my car—too messy," he says.

Heinz for decades searched for better single-serve packets. The company has tried making them bigger, easier to open, or attachable to a cup of French fries. None of the changes could be made cheaply or solve customers' main complaints—the single-serve packets are messy, hard to open and don't provide enough ketchup—say executives. For about the past decade, Heinz sold two single-serve containers: the classic squeeze packet and a dipping cup.

Heinz believes traditional ketchup packets are so annoying that they stop people from ordering fries at drive-thrus. "Fry inclusion orders" at drive-thrus "have been going down for years," says John Bennett, vice president of food-service ketchup, condiments and sauces for Heinz.

A large, wedge-shaped packet almost made it onto the market but Heinz ditched the design months before its planned introduction in 2008. Mr. Okoroafor declines to say what Heinz spent developing the "Dip and Squeeze."

In 2006, when activist investor Nelson Peltz battled Heinz for board seats, he pushed the company to make a number of changes, large and small, including developing easier-to-open ketchup packets. Now, Mr. Peltz sits on the boards of Heinz and Wendy's, which his holding company, Triarc Cos., bought in 2008.

Mr. Peltz declines through a spokesman to comment on the packaging change, saying it wouldn't be appropriate since he's on the boards of both companies.

Since a supply spat between Heinz and McDonald's that arose during a 1973 tomato shortage, Heinz, the country's largest ketchup producer, has been locked out of most McDonald's U.S. locations. Though Heinz didn't design the new packet to get back in McDonald's good graces, "that would be a wonderful side benefit," says Heinz's Mr. Bennett. The only McDonald's serving Heinz now are in Minneapolis and Heinz's hometown of Pittsburgh, he says.

The new packets cost Heinz several times more to produce than the old rectangular pouches it has been selling for over 40 years. The new containers cost restaurants more than three times the old packets, as well, which could give pause to some chains.

Restaurants give ketchup away, so "cost is king," says Amy Coltrin, senior director of product development for Golden State Foods Corp., a Heinz competitor that supplies private-label ketchup to most McDonald's in the U.S.

Stuart Leslie, president of 4sight Inc., a package-design firm based in New York that worked with Heinz, says the package subtly cues the consumer about the portion. Shaped like a bottle of Heinz ketchup and larger than the traditional packets, the "Dip and Squeeze" packs signal, "This is a serving, this is a bottle of ketchup," Mr. Leslie says. "You actually don't need 16 bags of ketchup."

Early tests at Chick-fil-A show the potential cost problems: consumers took more ketchup with the new packets, according to Chick-fil-A surveys of about 50 restaurants over several months. But the survey also indicated that customers strongly preferred the new packets.

Some consumers appeared to be hoarding the new packets [LOL], says Brian Wray, manager of brand strategy and design at the Atlanta-based fast-food chain. He expects use will plateau as the novelty wears off and people learn how much they need.

Other restaurants, including Smashburger and Dairy Queen, that conducted similar tests say people are using about the same or less ketchup.

On a recent afternoon inside a Chick-fil-A in Atlanta, Bruce Stanford is skeptical. The 55-year-old worries he might rip off the cover and douse himself with ketchup before digging into his chicken sandwich, fries and iced tea.

But after using it, the hospital admissions employee from Marietta, Ga., stays clean. "I get the concept," he says. "You squeeze on the sandwich and dip for fries."‹

DewDiligence PremiumMember

08/23/11 12:28 PM

Post #18

FY1Q12 CC slides:
http://www.heinz.com/data/pdf/Heinz_Q1-FY12_with_Appendix.pdf

DewDiligence PremiumMember

08/23/11 12:28 PM

Post #17

Re: #14: @DewDiligence - HNZ Reports FY4Q11 Results and FY2012-2013 Guidance

FY1Q12 results (with my annotations): #msg-66453995.

DewDiligence PremiumMember

06/01/11 11:47 AM

Post #16

Re: #15: @Bart Myers - Goldman Sachs is out with its report today

Well, that’s what makes a market! I strongly agree with the Barron’s piece in #msg-63662457.

Bart Myers Free

06/01/11 10:25 AM

Post #15

Goldman Sachs is out with its report today on H.J. Heinz (NYSE: HNZ), downgrading HNZ to Sell.

In a note to clients, Goldman Sachs writes, "We are downgrading Heinz to Sell as we believe the shares will underperform relative to our coverage universe over the next 12 months. HNZ trades at a premium to its peers but its organic growth has begun to lag – a recent phenomenon that we expect to continue. Its core developed market business (around 85% of profits) looks vulnerable given slowing innovation and marketing under-investment. Its emerging market business is growing, but still nascent and faces execution risk. We see the stock's recent strength as an opportunity to take profits and believe the shares will lag peers going forward as growth lags and its relative premium fades."

Source: http://www.benzinga.com/analyst-ratings/analyst-color/11/06/1127032/update-goldman-sachs-downgrades-h-j-heinz-to-sell#ixzz1O2CH5zQb

DewDiligence PremiumMember

05/27/11 5:41 PM

Post #14

HNZ Reports FY4Q11 Results and FY2012-2013 Guidance

http://finance.yahoo.com/news/Heinz-Delivers-Strong-Fiscal-bw-649991263.html?x=0&.v=1

›Thursday May 26, 2011, 7:00 am EDT

Heinz Delivers Strong Fiscal 2011 Results with Record Full-Year Sales of $10.7 Billion, Record Total Company Net Income of $990 Million (up 14.4%) and Record Operating Free Cash Flow of $1.26 Billion

Heinz Also Reports Fourth-Quarter Growth of 6% in Sales, 15% in EPS ($0.69) and 16.4% in Net Income; Raises Annualized Dividend 6.7% to $1.92

Fiscal 2011 Full-Year Results

• Sales grew 2.0% to a record of $10.7 billion

• Emerging Markets delivered 14.4% organic sales (volume plus price) growth (12.0% reported)

• Top 15 brands delivered 3.8% organic sales growth (2.9% reported)

• Gross margin increased 70 basis points to 36.9%

• Operating income grew 5.7% to $1.65 billion

• EPS from continuing operations increased 6.6% to $3.06 including a 2 cent cost for closing the Quero acquisition

• Total Company net income grew 14.4% to $990 million

• Record operating free cash flow of $1.26 billion, up 16.7%

• Return on Invested Capital of 19.3%

• On a constant currency continuing operations basis, Heinz grew sales 2.6%, operating income 6.7% and EPS 8.7%

Fiscal 2011 Fourth-Quarter Results

• Sales grew 6% to $2.89 billion

• Emerging Markets delivered 11.5% organic sales growth (21% reported)

• Top 15 brands delivered 2.9% organic sales growth (6.0% reported)

• 24th consecutive quarter of organic sales growth (1.6%)

• Gross margin increased 90 basis points to 36.3%

• Operating income grew 12.2% to $387 million

• EPS grew 15% to $0.69, including 2 cents of costs for closing the Quero acquisition

• Total Company Net income grew 16.4% to $224 million

• On a constant currency basis, sales grew 2.7%, operating income 8.8% and EPS 11.7%

Fiscal 2012/13 Outlook

• Fiscal 2012 constant currency EPS outlook $3.24 to $3.32, excluding the impact of one-time productivity initiatives

• Based on projected currency rates Heinz expects Fiscal 2012 EPS (excluding approximately 35 cents of special items) in the range of $3.29 to $3.39

• Fiscal 2013 constant currency EPS in the range of $3.60 to $3.70, a two-year average growth rate of 8.5% to 10%

• Raising Long-Term EPS outlook to a range of 7% to 10% from previous range of 6% to 9% on a constant currency basis

PITTSBURGH--(BUSINESS WIRE)-- H.J. Heinz Company (NYSE:HNZ) today reported strong fourth-quarter and full-year results for Fiscal 2011, a year in which the Company delivered record sales of $10.7 billion, record total Company net income of $990 million and record operating free cash flow of $1.26 billion while completing key acquisitions in Brazil and China to accelerate its dynamic growth in Emerging Markets. Earnings per share from continuing operations increased 6.6% to $3.06 from $2.87 a year ago. EPS this year included 2 cents of cost related to closing the Quero acquisition in April 2011.

Reflecting the Company’s record performance and cash flow, Heinz today announced that it will raise the annualized common stock dividend by 12 cents to $1.92 per share from $1.80, an increase of 6.7%, effective with the July payment.

Heinz Chairman, President and CEO William R. Johnson said: “Heinz delivered record sales, net income and cash flow in Fiscal 2011, fueled by accelerating growth in key Emerging Markets like China, India, Indonesia and Russia and value-enhancing innovation in our core portfolio of iconic brands. Through excellent execution of our long-term plan, Heinz enhanced its position as one of the best-performing global food companies while driving shareholder value and continued dividend growth.”

Fiscal 2011 Full-Year Financial Results

In the fiscal year ending April 27, 2011, sales grew 2.0% to $10.7 billion, led by 14.4% organic sales growth (12% reported) in Emerging Markets. The Company’s dynamic growth in Emerging Markets reflected record sales of: Heinz® baby food in China, Complan® and Glucon-D® nutritional beverages in India, ABC® soy and chili sauces in Indonesia, and Heinz® Ketchup and baby food in Russia. Emerging Markets generated more than 16% of the Company’s total sales in Fiscal 2011 and accounted for 17% in the fourth quarter.

The Company’s Top 15 brands generated 3.8% organic sales growth (2.9% reported), driven by the Heinz®, ABC®, Complan®, Smart Ones® and T.G.I. Friday’s® brands. Heinz also delivered 3.8% organic growth (1.9% reported) in global ketchup.

Net pricing increased full-year sales by 1.2%, largely due to price increases in Emerging Markets, the U.K. and U.S. Foodservice to partially offset rising commodity costs.

Volume grew 0.7% for the year as strong growth in Emerging Markets and solid growth in North American Consumer Products were partially offset by lower volume in Australia, U.S. Foodservice and Germany.

Acquisitions, net of divestitures, increased sales by 0.6%. These results did not include the Brazil acquisition, whose results will be reflected beginning in Fiscal 2012. In April 2011, Heinz acquired an 80% stake in the Brazilian manufacturer of Quero, a leading brand of tomato-based sauces, ketchup and vegetables with annual sales of about $325 million. Quero gives Heinz its first major business in Brazil, a key Emerging Market with the world’s fifth-largest population. In November 2010, Heinz expanded in China by acquiring Foodstar, a leading maker of premium soy sauce and fermented bean curd with annual sales of almost $100 million.

Foreign exchange translation rates reduced sales by 0.5% compared with the prior year.

Gross profit grew 4.2% to $3.95 billion and gross margin improved by 70 basis points to 36.9%, led by strong margin improvement in U.S. Foodservice and Europe. The increase in gross margin reflected higher volume and net pricing and improved productivity, which more than offset commodity inflation. SG&A increased 3.1%, primarily reflecting costs related to the Brazil acquisition and global investments in process and systems upgrades through Project Keystone.

Operating income increased 5.7% to $1.65 billion. Net interest expense was little changed at $253 million. The effective full-year tax rate for Fiscal 2011 was 26.8% versus 27.8% last year. Total Company net income increased 14.4% to a record $990 million, or $3.06 per share.

On a constant currency continuing operations basis, sales grew 2.6%, operating income rose 6.7% and EPS increased 8.7%. The Company’s return on invested capital rose to 19.3%.

Fiscal 2011 Fourth Quarter Results

Fourth quarter Heinz sales grew 6% to $2.89 billion, led by 11.5% organic growth in Emerging Markets (reported 21%) and 2.9% organic growth in the Company’s Top 15 brands (6.0% reported). Heinz achieved its 24th consecutive quarter of organic sales growth. Heinz had organic sales growth of 1.6% (6.0% reported) reflecting higher net pricing of 1.9%. Volume dipped 0.3% in the quarter. Foreign exchange increased sales 3.3% and acquisitions increased sales 1.1%.

Operating income for the quarter grew 12.2% to $387 million. The tax rate for the fourth quarter was 29.3% versus 30.4% a year ago. Total Company net income grew 16.4% to $224 million. Earnings per share grew 15% to $0.69 including Brazil acquisition costs of two cents.

On a constant currency basis in the fourth quarter, sales grew 2.7%, operating income increased 8.8% and EPS rose 11.7%.

Fiscal 2012/2013 Outlook and Productivity Initiatives

Heinz today announced its two-year outlook, including plans to drive sustainable profitable growth.

Fiscal 2012 Outlook

Mr. Johnson said: “To provide fuel for future growth, the Company will invest approximately $160 million – 35 cents of EPS – on initiatives to increase our manufacturing efficiency and accelerate productivity on a global scale.”

The plan includes exiting five factories, including two in Europe, two in the United States, and one in the Pacific, leaving Heinz with 76 factories globally. In addition, Heinz will establish a European supply chain hub in The Netherlands to consolidate and centrally lead procurement, manufacturing, logistics and inventory control. Overall, Heinz will streamline its global workforce by approximately 800 to 1,000 positions. Certain projects included in the plan are subject to consultation and any necessary agreements being reached with appropriate employee representative bodies, trade unions and works councils as required by law.

In Fiscal 2012, Heinz is also accelerating investment in Project Keystone, its ongoing global initiative to improve productivity and make Heinz more competitive by adding capabilities, harmonizing global processes and standardizing its systems through SAP. Heinz expects an incremental cost of approximately $40 million, or 8 cents per share, for Keystone expenses during Fiscal 2012, which are included in the Company’s constant currency outlook.

Excluding the cost of its one-time productivity initiatives, but including the higher costs of Keystone, Heinz expects Fiscal 2012 constant currency earnings per share in the range of $3.24 to $3.32. The Company expects reported EPS in Fiscal 2012 of $3.29 to $3.39 based on projected foreign exchange rates and excluding approximately 35 cents of productivity investments.

Heinz also expects strong operating free cash flow for Fiscal 2012 of approximately $1.15 billion, before special items as the Company increases its capital spending behind new growth and capacity initiatives. On a reported basis, operating free cash flow is still expected to exceed $1 billion.

The Company also expects Emerging Markets to generate more than 20% of the Company’s total sales in Fiscal 2012, reflecting double-digit organic growth and the acquisitions of Quero and Foodstar.

Fiscal 2013 Outlook

In Fiscal 2013, Heinz expects to deliver constant currency earnings per share in the range of $3.60 to $3.70, fueled by its productivity investments this year. This would represent a two-year average growth rate of 8.5% to 10% on a constant currency basis.

The Company today raised its long-term constant currency outlook for EPS growth to a range of 7% to 10% from a previous range of 6% to 9%.

FISCAL 2011 FULL-YEAR SEGMENT HIGHLIGHTS

North American Consumer Products

Sales of the North American Consumer Products segment grew 2.3% to $3.27 billion. Volume increased 2.0% as new products and trade promotions helped drive Heinz® Ketchup and gravy, Smart Ones® frozen entrees, Classico® pasta sauces, Ore-Ida® frozen potatoes and T.G.I Friday’s® frozen meals and appetizers. The segment delivered volume growth despite transitioning away from the Boston Market license, which should be completed in the first quarter of Fiscal 2012. Net prices decreased 1.1%, reflecting the Company’s decision to increase trade promotions. Favorable Canadian exchange translation rates increased sales 1.1%. Operating income increased 7.9% to $833 million.

Europe

Heinz Europe sales decreased 2.9% to $3.24 billion. Foreign currency translation rates of 3.5% accounted for more than the total decline as organic sales grew 0.6%. Volume declined 0.4%, as gains in Weight Watchers® and Aunt Bessies® frozen products in the U.K., beverages in The Netherlands, and ketchup, particularly in Russia and France, were more than offset by lower soup volume in the U.K. and Germany, Honig® branded products in The Netherlands and infant nutrition across Europe. Net pricing increased 1.0%. Operating income increased 4.8% to $581 million. On a constant currency basis, operating income grew 9.0%.

Asia/Pacific

Heinz Asia/Pacific sales grew 15.6% to $2.32 billion, driven by higher volume. Volume increased 4.8%, due to significant growth in Complan® and Glucon-D® nutritional beverages in India, ABC® products in Indonesia, and infant feeding and frozen products in China and Japan. Theses increases were partially offset by continued softness in Australia. Pricing rose 0.2%. The acquisition of Foodstar in the third quarter of Fiscal 2011 increased sales 2.9%. Favorable exchange translation rates increased sales by 7.7%. Operating income increased 13.5% to $222 million, up 4.7% on a constant currency basis.

U.S. Foodservice

Sales of the U.S. Foodservice segment decreased 1.1% to $1.41 billion. Pricing increased sales 2.3%, largely due to Heinz® Ketchup and other branded tomato products, reflecting reduced trade promotions, and price increases taken to help offset commodity inflation. Volume was down 3.5%, reflecting declines in frozen desserts, soup and non-branded sauces, and ongoing weakness in restaurant traffic. Operating income increased 16.8%, to $176 million.

Rest of World

Sales for Rest of World decreased 11.9% to $470 million as foreign exchange translation rates decreased sales by 24.6%, largely due to the currency devaluation in Venezuela in January 2010. Higher pricing increased sales by 17.2%, fueled by price increases in Latin America and other markets to mitigate inflation. Volume decreased 4.5% as increases in the Middle East were more than offset by the impact of a work stoppage at our factory in Venezuela. Operating income decreased 22.9% to $53 million, but was up 4.7% on a constant currency basis. Importantly, fiscal year results do not include any operating results from the Quero acquisition in order to facilitate timely financial reporting.

MEETING WITH SECURITIES ANALYSTS – INTERNET BROADCASTS

Heinz will host its 2011 Investor and Analyst Meeting today starting at 8:30 a.m. Eastern Time. The meeting will be Webcast live on www.heinz.com and will be archived for playback. Questions will be taken from audience members only. Institutional investors and analysts can also call 866-515-2914 in the U.S. and Canada. Slides will be available for this call on www.heinz.com. The conference call will be hosted by William R. Johnson, Chairman, President and CEO.‹

DewDiligence PremiumMember

05/27/11 5:40 PM

Post #13

Heinz Keeps Pouring It On: #msg-63662457.

Hostile Takeover Free

05/22/11 5:46 PM

Post #12

Re: #11: @DewDiligence - The Barron’s article in #msg-60827282 has a good

Thank you DD. I'll be working on it.

DewDiligence PremiumMember

05/22/11 5:39 PM

Post #11

Re: #10: @Hostile Takeover - I shall continue the DD.

The Barron’s article in #msg-60827282 has a good overview of HNZ, IMO. Regards, Dew

Hostile Takeover Free

05/22/11 9:23 AM

Post #10

Re: #9: @Hostile Takeover - S&P gives 5 stars.

I shall continue the DD.

Hostile Takeover Free

05/22/11 9:23 AM

Post #9

Re: #8: @Hostile Takeover - H. J. Heinz Company, together with its subsidiaries,

S&P gives 5 stars.

Hostile Takeover Free

05/22/11 9:22 AM

Post #8

Re: #7: @Hostile Takeover - Great American Company.

H. J. Heinz Company, together with its subsidiaries, is engaged in manufacturing and marketing a range of food products globally.

Hostile Takeover Free

05/22/11 9:21 AM

Post #7

Great American Company.

BBaldeagle Terminated

05/14/11 11:10 PM

Post #6

Re: #5: @DewDiligence - HNZ Buys Controlling Stake in Brazilian Ketchup Maker:

bright future, split at 65.

DewDiligence PremiumMember

03/04/11 5:19 AM

Post #5

HNZ Buys Controlling Stake in Brazilian Ketchup Maker:

#msg-60572753

JustCallMeSassy Free

08/24/09 9:41 AM

Post #4

HJ Heinz Q1 Profit Declines On Currency Fluctuations - Update
8/20/2009 11:34 AM ET
(RTTNews) - Packaged food products maker HJ Heinz Co. (HNZ: News ) Thursday reported a decline in profit for the first quarter, as unfavorable currency effects drove down sales. The company also backed its full-year earnings per share and sales growth outlook.

First-quarter net income attributable to company was $212.56 million or $0.67 per share, compared with $228.96 million or $0.72 per share last year.

Analysts polled by Thomson Reuters expected the company to report earnings of $0.62 per share for the quarter. Analysts' estimates typically exclude special items.

Sales for the quarter totaled $2.47 billion, lower than $2.58 billion in the prior-year quarter. Ten analysts had a consensus revenue estimate of $2.44 billion for the quarter.

HJ Heinz said that the impact of currency reduced sales by 9%, and both net income and earnings per share by 17%. On a constant currency basis, Heinz achieved 4.5% sales growth. Carryover pricing and tight cost controls were key factors in driving higher constant currency profit, the company noted.

According to the company, the results reflected 14% organic sales growth in Emerging Markets, led by Latin America, India and Russia, 2.2% organic sales growth in top 15 brands and the positive impact of carryover pricing, despite a tough economic environment. Emerging Markets generated approximately 16% of the company's total sales, led by higher sales of Complan and Glucon-D nutritional beverages in India, and higher volume and pricing in infant/nutrition products and ketchup in both Latin America and Russia.

Solid performances in North America and Europe, significantly higher profit in the U.S. Foodservice business, and disciplined cost management also contributed to the results. While net pricing increased 6%, total volume declined 4.3%, HJ Heinz noted.

Further, the company said that its top 15 brands globally generated approximately 70% of its reported sales, led by the Heinz brand, Ore-Ida potatoes and T.G.I. Friday's snacks and skillet meals.

As anticipated, the costs for key commodities such as tomatoes, tin plate and potatoes rose during the quarter. Overall, the company's net input costs were up 6% in the first quarter.

By geography, North American Consumer Products reported sales of $727.24 million, down 1.9% from $741.18 million a year ago. Unfavorable Canadian exchange translation rates decreased sales by 2.4%. Organic sales growth was 0.5%. Net prices were up 5.4%, reflecting the company's focus on full-price sales and the carryover impact of price increases taken across the majority of the product portfolio in fiscal 2009. Volume decreased 4.9%.
(RTTNews) - Europe reported quarterly sales of $788.84 million, down 14.1% from $918.19 million in the previous year, reflecting the carryover impact of price increases taken in fiscal 2009, as well as reduced promotional activity on Heinz Ketchup, beans, soup and frozen products in the UK. Unfavorable foreign exchange translation rates decreased sales by 17.1%. Organic sales in Europe were up 0.8%. Volume decreased 4.3% in the quarter.

Heinz Asia/Pacific generated sales of $469.23 million, up 2.5% from last year's $457.81 million. Organic sales increased 1.9% for the quarter. While pricing rose 4.1%, volume decreased 2.2%, largely reflecting softness in Australia. Unfavorable exchange translation rates decreased sales by 12%.

U.S. Foodservice segment's sales declined to $346.50 million from $353.41 million in the previous year. Pricing increased sales by 5.6%, largely due to the carryover impact of prior year price increases as well as decreased promotional spending on portion control condiments. Meanwhile, volume was down 6%, reflecting lower U.S. restaurant traffic and SKU reductions. Divestitures reduced sales by 1.6%.
Rest of World sales totaled $136.11 million, higher than $112.61 million in the same quarter last year. Higher pricing increased sales by 26.2% to cover inflation. Volume was down 3.3%, despite increases in ketchup and baby food in Latin America. Foreign exchange translation rates decreased sales by 3.1%.

Among others in the sector, Campbell Soup Co. (CPB: News ) is slated to announce its fourth-quarter results on September 11. Analysts are looking for earnings of $0.26 per share on revenues of $1.52 billion.
Another peer, ConAgra Foods, Inc., (CAG: News ) has reported a 13% decline in its profit for the fourth quarter compared with last year, which included a gain from the sale of the company's commodity trading unit. The Omaha, Nebraska-based company's net income declined to $174.7 million or $0.39 per share from $201.3 million or $0.41 per share, in the prior-year quarter.

Looking ahead, for fiscal 2010, Heinz continues to expect earnings per share growth in a range of 5%-8% and sales growth in a range of 4%-6% on a constant currency basis. Analysts expect the company to report earnings of $2.69 per share on revenues of $10.35 billion for fiscal 2010.

HNZ is trading at $38.72, up $0.78, on a volume of 1.54 million shares.