On June 1, Heinz (NYSE:HNZ) released annual earnings for the period ended May 3.

  • Because of restructuring and one-time charges, comparisons are difficult. On a continuing operations basis, earnings per diluted share decreased from $2.21 to $2.10.
  • No balance sheet data and abbreviated cash flow data limit the usability of Heinz's earnings press release.
  • Gross and operating margins continue to decline despite the restructuring.

(Figures in millions, except per-share data)

Income Statement Highlights

Avg. Est.

FY 2006

FY 2005

Change

Sales

$8,870

$8,643

$8,104

6.7%

Net Profit

--

$646

$753

(14.2%)

EPS

$2.06

$1.89

$2.13

(11.3%)

Diluted Shares

--

342

353

(3.2%)



Get back to basics with a look at the income statement.

Margin Checkup

FY 2006

FY 2005

Change*

Gross Margin

35.78%

37.43%

(1.65)

Operating Margin

12.88%

15.81%

(2.93)

Net Margin

7.47%

9.29%

(1.82)

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Not provided by company.

Learn the ways of the balance sheet.

Cash Flow Highlights

FY 2006

FY 2005

Change

Cash From Ops.

$1,075

$1,161

(7.4%)

Capital Expenditures

$231

$241

(4.2%)

Free Cash Flow

$844

$920

(8.2%)



Find out why Fools always follow the money.

Related Companies:

  • Campbell Soup (NYSE:CPB)
  • ConAgra (NYSE:CAG)
  • Kraft Foods (NYSE:KFT)
  • Tyson Foods (NYSE:TSN)
  • Smithfield Foods (NYSE:SFD)

Related Foolishness:

Heinz and Kraft Foods are Motley Fool Income Investor selections. Take the newsletter dedicated to dividend payers for a 30-day free trial .

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,Nathan Parmelee had a beneficial interest in shares of Heinz but no positions in any of the other companies mentioned. Fool rules are here.