Ketchup and packaged food producer HJ Heinz Co reported a 19 per cent fall in quarterly profits yesterday because of weak demand for seafood and soup in parts of Europe and costs related to planned asset sales.

Heinz, which employs 400 people between Dundalk, Co Louth and Dublin, said however that it was still on track to meet full-year profit targets despite steep commodity costs and a stronger US dollar that pressures international results.

Its shares edged up 1 per cent in early New York Stock Exchange trading.

Net income fell to $157.3 million (€128.6 million), or 45 cents a share, in the fiscal first quarter ended July 27th, compared with $194.8 million, or 55 cents per share, a year earlier.

Net earnings included after-tax charges of $24.5 million for job cuts and other restructuring efforts.

"Headlines look good but the devil is in the details," Prudential Equity Group analyst John McMillin wrote in a note to clients, pointing out that a lower-than-expected 27.9 per cent tax rate added to earnings, while exchange rates and acquisitions lifted sales.

"European trends remain the principal challenge," he said.

Heinz announced in May that it was considering selling some assets such as its European seafood business and New Zealand poultry operations, both of which weighed on first-quarter profits.

However, the company said only that it was "making good progress" on those plans and would give further details at a September 20th analyst meeting.

Sales were flat in Europe as declines in the company's seafood business and weakness in the British soup market offset strong ketchup sales.

European operating profit dropped nearly 16 per cent, primarily because of weakness in Ireland, Britain and Northern Europe. - (Reuters)