Heinz to Shut 5 Plants, Lay Off 500 Workers

H. J. Heinz Co. said it would lay off about 500 people and close five plants outside the United States in the next 14 months.

Anthony J. F. O’Reilly, chairman of the food company, disclosed the plans during a meeting with financial analysts in New York.

The closings are part of the company’s efforts to cut costs and improve technology, company spokesman Edward I. Smyth said.

O’Reilly said about six plants will be closed, but Smyth said five plants actually are slated for shutdown. Neither O’Reilly nor the spokesman would identify the facilities.

Heinz employs about 36,500 people at about 100 plants around the world. About 2,500 people have been added to the company’s payroll in the past year through acquisitions, Smyth said.

O’Reilly said he expects Heinz to reach its objective of earning $2.40 a share in fiscal year 1992. He said earnings of $2.60 a share the following year “will be tough but attainable.”

He said the company’s increased marketing, including a 15% spending rise, enabled flagship brands to rebuff competitive pressure.

The company’s market share for ketchup has increased to an all-time high of nearly 54%, he said. StarKist tuna has held steady at 40%, and 9-Lives cat food has risen to 26%, he said.

Weight Watchers brand entrees have jumped from 7% to 11%, and desserts have grown from 17% to 34%, he said.