US: Heinz reassures shareholders that transformation plan is paying off
In a letter to shareholders issued yesterday (24 April) Heinz reaffirmed the guidance it had previously published for FY 2006, emphasising its determination to return value to shareholders and summarising the company's progress in implementing its strategic plan.
The company restated its pro-forma EPS guidance for fiscal 2006 of between US$2.10 and $2.16 per share.
Heinz said that it expects sales growth of between 3% and 4% in the 2007 financial year, operating income and EPS growth at the upper end of a 6% to 8% range and operating free cash flow of $800m to $900m.
"Following a successful transformation restructuring process, Heinz has established a solid new foundation for growth with leading brands in established and select developing geographies," said chairman, president and CEO William Johnson. "It is important that we communicate to shareholders the scope of the important change that has been achieved, and the capabilities we have built and are refining to drive increased shareholder value in fiscal 2007 and beyond."
This shareholder reassurance follows rumours of activist investors pressuring the management of Heinz to return more value to shareholders. Billionaire investor Nelson Peltz has given notice that, through Trian Partners Master Fund, he intends to seek the nomination of five people to Heinz's 12-member board of directors.
Famous ketchup maker HJ Heinz is trying to rebuff a group of shareholders who are lobbying for change but the company is short of friends in the financial community and momentum is building against it...
US food giant Heinz has reported lower first-quarter earnings, but said it was on track to achieve its full-year outlook despite increased commodity costs and a stronger US dollar....
US food giant H.J. Heinz has completed its acquisition of HP Foods from France's Groupe Danone for £470m (US$820m) in cash....
H J Heinz Company has announced that it has agreed to purchase privately-held Nancy's Specialty Foods Inc, producers of the Nancy's brand of premium appetizers, quiche entrees and desserts. Terms of ...
Branded food and consumer products company Sara Lee Corporation has announced that its board of directors has elected George Chappelle a senior vice president of the corporation and Kees Gielen and Al...
Chinese dairy company Bright Dairy has seen sales slump following accusations that it suppressed news about alleged safety problems with its products, according to the Financial Times....
H J Heinz Company has today (Monday) confirmed that it has signed a definitive agreement with Groupe Danone SA to acquire a number of leading culinary sauce brands for £470m (US$855m) in cash....
French food group Danone said on Monday that it planned to sell its Amoy sauce business in Asia, an asset that wasn't part of the sale of its sauce business to H J Heinz, according to the Dow Jones ne...
- General Mills sales woes continue - analysis
- Why personalisation will take-off in US food
- Comment: Meal kits in US - don't believe the hype
- US food next wave on display at Winter Fancy Food
- Analysis: Chocolate sector's deforestation pledge
- Kraft Heinz cuts jobs in US, Canada
- Unilever invests in Dutch meat substitute project
- Lactalis fails to hit threshold to delist Parmalat
- Brazil seeks to cool concerns over meat probe
- Fonterra cuts earnings forecast