Del Monte’s Profit Falls on Heinz Costs

Del Monte Foods Co.’s profit tumbled 41% in its fiscal first quarter, hit by the cost of integrating brands acquired from H.J. Heinz Co. in late 2002, as well as higher commodity costs and marketing expenses.

The San Francisco producer of such brands as Kibbles ‘n Bits pet food and StarKist tuna said Thursday that it had net income of $8.5 million, or 4 cents a share, for the period ended Aug. 1, down from $14.3 million, or 7 cents, a year earlier.

The latest results include integration costs of $8.6 million, or 2 cents a share, up from $7 million, or 2 cents, a year ago.

In June, Del Monte warned that first-quarter earnings would be lower, estimating earnings of 3 cents to 5 cents a share.

The company said Thursday that it had reduced costs and increased prices to offset inflationary pressures.

Sales rose 2.4% to $626 million from $611.3 million last year, primarily on price increases. Volume of pet products grew, while tuna sales volume fell. For the second quarter, Del Monte expects sales to grow 4% to 6%.

Shares of Del Monte rose 9 cents Thursday to $10.82 on the New York Stock Exchange.