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Heinz relishes higher 3Q
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March 9, 1999: 9:47 a.m. ET
Operating earnings of 60 cents a share meet analysts' forecasts; year on target
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NEW YORK (CNNfn) - A Weight Watchers dieting class program helped H.J. Heinz Co. bulk up earnings for its fiscal third quarter.
The food processor said Tuesday earnings from operations for the period, ended Jan. 27, rose to 60 cents a diluted share from 55 cents a year earlier. The results were in line with the consensus of analysts surveyed by First Call.
Restructuring charges caused net income to fall to $120.6 million, or 33 cents a diluted share, from $188.2 million, or 50 cents. Sales rose 2.1 percent to $2.28 billion, while operating income for the quarter rose 9.3 percent to $408.1 million.
Heinz (HNZ) said the results from its Weight Watchers classroom program offset continuing weakness in its pet food business, which it attributed to the disappointing performance of the 9-Lives cat food 4-pack, an unfavorable mix shift and ineffective trade spending.
"The third-quarter results reflect the success of our growth plans, and margins continue to show improvement," said company president William Johnson.
Johnson is optimistic that the company will meet its expectations for the fiscal year, ending April 30.
"We will continue to invest in our key brands, with heavy spending in the fourth quarter for grocery, ketchup and frozen potatoes," he said. "We expected the continued exceptional performances of our other businesses, along with tight cost controls, to keep us on track to meet expectations for the year, despite an anticipated reduction in fourth-quarter operating income for the pet food business."
Heinz shares closed Monday at 52, down 11/16. 
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H.J. Heinz
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