The ketchup and packaged foods maker, whose shares rose 2 percent in morning trade, said it expects profit of 67 cents to 68 cents a share in the third quarter ending January 30. Analysts on average were expecting 63 cents a share, according to Reuters Estimates.
NEW YORK (Reuters) - H.J. Heinz Co on Friday forecast quarterly profit higher than analysts' estimates and lifted the bottom end of its full-year outlook, as foreign exchange rates and price and volume increases are offsetting high commodity costs.
The ketchup and packaged foods maker, whose shares rose 2 percent in morning trade, said it expects profit of 67 cents to 68 cents a share in the third quarter ending January 30. Analysts on average were expecting 63 cents a share, according to Reuters Estimates.
The maker of Heinz ketchup, Ore-Ida potatoes and Smart Ones frozen meals also said it expects quarterly organic sales, which is volume plus price, to increase 8 percent to 9 percent, driven by a 5 percent increase in volume and a 3 percent increase in pricing.
The company, which generates 60 percent of its sales outside the United States, said it expects the weak U.S. dollar to contribute 5 percent of its growth. The dollar's weakness versus foreign currencies boosts the value of international sales when they are converted to dollars for inclusion in the income statement.
!ADVERTISEMENT!Like most U.S. food companies, Heinz is facing higher costs for commodities, which it is offsetting with higher pricing, productivity gains and the currency fluctuations.
Heinz also said it now expects to earn $2.60 to $2.62 per share for the full year, compared to a prior forecast of $2.54 to $2.62 per share.
Heinz shares were up 89 cents at $43.78 on the New York Stock Exchange.
(Reporting by Martinne Geller and Brad Dorfman, editing by Dave Zimmerman
