On Aug. 22, Heinz (NYSE:HNZ) released its fiscal Q1 2006 earnings for the period ending July 27.

  • The company boasted of achieving "strong sales increases of 5.3%" against the same period last year. While few investors would consider 5.3% a "strong" number, the company did post significant sales gains in North America and the Asia Pacific region (11.5% and 9.9%, respectively.)
  • Reorganization charges hurt GAAP earnings, however, and free cash flow declined significantly as well.
  • The diluted share count declined by 1.7%, a very shareholder-friendly development.

(Figures in millions, except per-share data)

Income Statement Highlights (What's this?)

Avg. Est.

Q1 2006

Q1 2005

% Change

Sales

$2080

$2,110.2

$2,003

+5.3%

Net Profit

$ -

$157.3

$194.8

-19.3%

EPS

$0.49

$0.45

$0.55

-18.2%

Margin Checkup (What's this?)

Q1 2006

Q1 2005

Change

Gross Margin

35.7%

36.9%

-1.2%

Op. Margin

13.3%

17%

-3.7%

Net Margin

7.4%

9.7%

-2.3%

Balance Sheet Highlights (What's this?)

We'll have to wait on the company's 10-Q filing for this one; Heinz did not provide a balance sheet with its earnings release.

Cash Flow Highlights (What's this?)

Q1 2006

Q1 2005

% Change

Cash From Ops

165.9

186.2

-10.9%

Capital Expend.

47.2

38.4

+22.9%

Free Cash Flow

118.7

147.8

-19.7%

Related Companies:

  • Groupe Danone (NYSE:DA)
  • Campbell Soup (NYSE:CPB)
  • ConAgra Foods (NYSE:CAG)
  • Kraft (NYSE:KFT)
  • Unilever (NYSE:UL)
  • Novartis (NYSE:NVS), which competes with Heinz in the baby food segment through its Gerber subsidiary.

Related Foolishness:

  • Get a Foolish perspective on Heinz's saucy quarter.
  • Maybe Heinz isn't so thrilled about the "5.3%" number after all. The company seems to be on a buying spree.
  • Heinz grabs another (frozen) toehold in the warehouse groceries sector.

H.J. Heinz is a Motley Fool Income Investor pick.

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.

At the time of publication, Fool contributor Rich Smith had positions in no company mentioned. Fool rules are here.