Dive Brief:

• Heinz reported a drop in sales and net income from continuing operations for the first quarter, as the company's severance costs rose. 
• The company also announced that severance costs from closed factories is now projected to be $93 million, well above the $63 million estimated in its 2013 annual report. 
• Cost cuts compensated for the drop in sales, leading to a 9.8% rise in overall profit to $195.2 million.

Dive Insight:

So sales are down, but the company is cutting costs at such a level that profit is rising. As a general rule, that sort of thing can be read as good news.

But in the case of Heinz, it's worth noting that most of its profits were funneled to Berkshire Hathaway as part of a preferred stock deal. So of that $195 million in profit, a full $188 million went to Berkshire. 

As we've noted before, there are only so many ways a company structured like Heinz can go.