Dive Brief:
- H.J. Heinz Co. reported revenue of $2.73 billion in the most recent quarter, down 4% from a year earlier.
- Despite the drop in sales, the ketchup maker posted net profit $126.7 million, a dramatic swing from the $123.9 million loss reported a year earlier. The year-earlier figure included some $200 million in one-time merger costs.
- The company made up for the sales decline by continuing to cut costs. The Pittsburgh-based food manufacturer has closed factories and eliminated office jobs in North America, Canada, and Europe since it was taken private by Warren Buffett's Berkshire Hathaway and investment firm 3G Capital in June 2013.
Dive Brief:
With no indication yet that the new owners can increase sales, the cost-cutting seems to be accelerating. Severance-related expenses have now reached $393 million -- an increase from the $93 million projected last quarter and the $63 million projected last year.