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Heinz beats 2Q estimates
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December 5, 2000: 8:47 a.m. ET
Ketchup maker tops lowered forecast as sales slip, cites weak currencies
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NEW YORK (CNNfn) - H.J. Heinz Co. reported a nearly 10 percent profit increase Tuesday for its fiscal second-quarter, beating lowered Wall Street estimates by a penny a share as sales slipped slightly.
For the quarter ended Nov. 1, the Pittsburgh-based maker of ketchup, StarKist Tuna and Smart Ones frozen meals reported operating income of $459.5 million, or 69 cents a diluted share, compared with $418 million, or 63 cents, in the year-earlier quarter.
Analysts had forecast earnings of 68 cents a share, according to a consensus compiled by First Call.
 Excluding the impact of weak overseas currencies, operating income increased 17 percent.
Sales fell to $2.30 billion from $2.34 billion a year ago. Excluding the sale of the Weight Watchers classroom business, sales increased 6.4 percent.
The company warned in September that the nationwide launch of its StarKist pouch-packaged tuna would cause it to miss second-quarter estimates.
Heinz also increased estimates for its company-wide restructuring program, saying it likely will cost $1.2 billion, compared with $1.1 billion originally estimated.
"Operation Excel is a highly successful program that is driving efficiencies and productivity while also helping to underwrite a number of important growth initiatives, CEO William Johnson said.
Heinz also is in the midst of a legal fight with federal regulators to acquire Milnot Holding Co., maker of Beech-Nut baby food. Regulators are concerned the merger would give Heinz a disproportionate share of the U.S. baby food market.
Heinz (HNZ: Research, Estimates) shares gained $1.25 to close at $46.56 Monday. 
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