- H.J. Heinz posted net income of $171.6 million in its third quarter, a dramatic improvement from the $11.8 million loss reported a year earlier.
- Sales at the condiment and canned food giant fell to $2.59 billion from $2.65 billion a year earlier.
- The continuing global efforts to slash costs were credited for the return to profitability. The company said its total production costs fell another 16% in the quarter.
Heinz says it eliminated about 4,050 jobs since it was taken over by private equity firm 3G Capital and Warren Buffett's Berkshire Hathaway, the same folks involved in the move-Burger-King-to-Canada effort to reduce costs by cutting taxes.
Cost cutting and financial engineering are the business model now for Heinz. As Food Dive noted back in January, the new owners saddled Heinz with large debt and then slashed costs to ensure the investors continue to get their payouts. That can lead to only a limited number of outcomes, and organic growth isn't one of them.