Heinz Profit Drops 18% in 4th Quarter

H.J. Heinz Co. said operating profit fell 18% in its fiscal fourth quarter to $185.7 million, or 53 cents a share, matching expectations, and warned that earnings in the current quarter would fall below Wall Street forecasts. The company, whose brands include Heinz ketchup, StarKist tuna and Ore-Ida frozen potatoes, said sales rose 4% to $2.69 billion, helped in part by acquisitions.

Heinz blamed the decline on adverse currency fluctuations, weaker tuna prices and higher energy costs.

The company said it expects fiscal 2002 first-quarter earnings of 60 cents to 62 cents a share, and it reiterated its forecast of $2.70 to $2.80 for fiscal 2002. Analysts were expecting earnings of 65 cents in the first quarter and peg its full-year earnings at $2.73.

Shares of Pittsburgh-based Heinz fell 14 cents to close at $42.29 on the NYSE.