Acquisitions help Heinz profits beat estimates

Packaged foods maker HJ Heinz posted better-than-expected quarterly profit amid acquisitions and a lower tax rate.

Packaged foods maker HJ Heinz posted better-than-expected quarterly profit amid acquisitions and a lower tax rate.

Heinz reported profit of $203.8 million, or 60 cents share, for the fiscal second quarter ended October 26th, up from $199.0 million, or 56 cents a share, a year earlier.

Heinz is in the process of trying to sell its European seafood and frozen food operations as it looks to improve profit in that region after completing a similar restructuring in its US business.

The company posted pretax charges of $50.9 million for severance and other restructuring items.

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Sales rose 6.3 per cent to $2.34 billion, with much of the increase coming from acquisitions such as the purchase of Lea & Perrins sauce maker HP Foods.

North American profit rose 9.3 per cent, helped by higher volume and acquisition, which offset rising commodity and other costs.