Heinz Reports Healthy Earnings, Unit Sale

H.J. Heinz Co. reported better-than expected earnings for the fiscal first quarter and said it agreed to sell its Canadian-based bakery products unit to Pillsbury Co., a unit of Diageo--the British food, beverage and restaurant conglomerate--for $178 million in cash. Heinz’s profit rose 13% in the quarter to $223.3 million, or 60 cents a share, excluding charges. The Pittsburgh-based company said lower costs and rising unit sales offset the impact of the strong dollar on revenue, which was flat at $2.23 billion. Heinz shares rose $2.13 to close at $54.19 on the NYSE.