Heinz says it is off to a good start, expects 1st quarter results above expectations

Heinz says 1Q will beat expectations

PORTLAND, Ore. — H.J. Heinz Co. told shareholders the foodmaker is off to a good start for its fiscal year and expects to report first-quarter results above expectations.

Heinz CEO William Johnson said the company expects to earn 75 cents per share for the quarter. That’s up from the 67 cents per share Heinz earned for the same period last year and above the 73 cents analysts polled by Thomson Reuters had anticipated.

The company, which makes foods such as Ore-Ida potatoes, Classico pasta sauce and its signature ketchup, expects sales to be up nearly 2 percent.

Heinz says the improvement is based on stronger sales, particularly in emerging markets. Almost two-thirds of Heinz’s sales are outside the U.S.

“We believe that our solid first-quarter results put Heinz on track to deliver our financial targets for the full year, even though the consumer and economic environment remains challenging,” Johnson said.

Like many companies, Heinz has focused on growing markets like India and China as more mature markets such as the U.S. have slowed.

Heinz announced in June that it was buying Foodstar, a Chinese food company that makes soy sauces and fermented bean curd, for $165 million from the private equity firm Transpac Industrial Holdings Ltd. The company said it will continue to keep an eye on potential acquisitions.

The company’s management also said they will continue to focus on foreign markets. Johnson said emerging markets are on track to deliver at least 20 percent of the company’s total sales by 2013, more than double their contribution five years ago.

Heinz also reaffirmed its full-year guidance, saying it expects sales growth of 3 to 4 percent and earnings per share to rise 7 to 10 percent for the fiscal year on a constant currency basis.

The company, based in Pittsburgh, plans to report its full quarterly results Wednesday.