Heinz Profit Falls

Tuesday, December 5th 2000, 12:00 am

By: News On 6

PITTSBURGH (AP) â€” Food manufacturer H.J. Heinz & Co.'s profit fell in the second quarter from results that included a big onetime gain a year ago. But its core earnings excluding unusual items rose 5.8 percent and beat Wall Street expectations.

The maker of Heinz ketchup, Star Kist tuna and Ore-Ida potatoes said Tuesday it earned $190.0 million, or 54 cents per share, in the three months ended Nov. 1, down from $415.5 million, or $1.14 a share, a year earlier.

The 1999 results included a $464.6 million gain on the sale of its Weight Watchers classroom business, which runs a program for people who want to lose weight.

Excluding that gain and other special items, Heinz said its core earnings rose to $241.7 million, or 69 cents a share, compared to $228.4 million, or 63 cents per share, last year.

Analysts surveyed by First Call/Thomson Financial had expected earnings before items of 68 cents a share.

On Tuesday, Heinz shares were down 87.5 cents a share to close at $45.69 on the New York Stock Exchange.

Heinz sales fell to $2.296 billion in the quarter from $2.344 billion a year ago. The decline reflected the absence of revenue this year from the divested Weight Watchers classroom business as well as the impact of the strong dollar.

William R. Johnson, chairman and chief executive, said sales would have risen 6.4 percent if exchange rates were steady in the quarter and Weight Watchers revenue last year were excluded from the comparison.

Sales of frozen foods and ketchup, condiments and sauces rose, but low tuna prices hurt sales of Starkist tuna and pet food sales fell.

For the fist six months of its fiscal year, Heinz earned $390.6 million, or $1.11 a share, down from $622.2 million, or $1.71 a share. Revenue was $4.449 billion versus $4.525 billion a year ago.

Core earnings for the first six months increased to $479.4 million, or $1.37 per share, up from $452.2 million, or $1.25 per share, in the same period last year.

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On the Net:

http://www.heinz.com