Global food company Heinz today said its core profits fell 18 per cent in the fiscal fourth quarter, in line with Wall Street expectations, as the weak British pound and other factors weighed on results.
Heinz, the maker of Heinz ketchup and relish, StarKist tuna and Ore-Ida frozen potatoes, posted earnings before unusual items of $185.7 million or 53 cents a share - down from $226.4 million or 63 cents a share a year earlier.
Analysts had expected earnings of 50 to 54 cents a share, with a consensus estimate of 53 cents, according to market research firm Thomson Financial/First call.
Including unusual items Heinz had a net loss of $170.5 million or 49 cents per share. In the year-earlier quarter it posted net income of $97.3 million or 27 cents per share.
The fiscal 2001 fourth-quarter net loss included pre-tax net costs totaling $493.4 million or $1.02 per share after tax.
In the year-earlier fourth quarter net income included net restructuring charges and implementation costs of $199.4 million pre-tax or 36 cents per share after tax.
Fourth-quarter sales rose 4.0 per cent, to $2.69 billion from $2.59 billion, the company said. The increase reflected higher sales volume and the positive impact of acquisitions, the company said. On a constant-currency basis, sales rose 8 per cent.
Heinz Chairman, president and chief executive Mr William Johnson said in a news release: "The results met expectations communicated in our March 5th outlook as Heinz focused on drivingfuture growth through product and packaging innovation and increased spending on consumer advertising and marketing."