Heinz Q4 Profits Up; Raises Dividend For FY11

HJ Heinz Co HNZ, the food giant, posted about 10% growth in Q4 net income, as an increase in spending on price promotions boosted its sales. The Pittsburgh based company said that its net income increased to $192.4 million, or $0.60 per share, from $175.1 million, $0.55 per share, in the same quarter a year ago. HNZ’s sales for the quarter increased to $2.72 billion, from $2.52 billion in the year ago period. The analysts were expecting HJ Heinz to report earnings of $0.59 per share on revenue of $2.75 billion. Heinz has also raised its dividend by 7.1% to $1.80 for the fiscal year 2011, from $1.68 a year earlier. According to HNZ, “In constant currencies, fourth-quarter profit per share from continuing operations was flat, reflecting investment in marketing and productivity initiatives.” The company has projected 7%-10% earnings on a constant-currency basis for the fiscal year 2011 due to a 3%-4% rise in sales. HNZ’s shares dipped 0.09% to $44.22 in after hours trading. Read more from Benzinga's Company news.