CHICAGO (Reuters) - H.J. Heinz Co posted a higher quarterly profit as price increases, currency hedging and strong sales in North America and emerging markets helped offset higher commodity prices and slower growth in Europe.
The maker of Heinz ketchup, Ore-Ida potatoes and Smart Ones frozen foods also stood buy its forecast for the fiscal year ending April 29, 2009.
Heinz posted profit of $276.7 million, or 87 cents a share, in its second quarter, ended October 29, compared with $227 million, or 71 cents a share, a year earlier.
Sales rose 3.5 percent to $2.61 billion. Organic sales, which exclude the impact of currency fluctuations, rose 5.8 percent. As the U.S. dollar strengthens, it reduces the dollar value of sales made overseas. Heinz gets a good percentage of its sales from outside the United States.
But the company also hedged some of its currency exposures and posted a $92 million benefit from gains on those hedges.
For the full year, Heinz stood by its forecast calling for earnings of $2.87 to $2.91 a share and an increase in organic sales of 6 percent or more.
(Reporting by Brad Dorfman; Editing by Steve Orlofsky)
