Heinz (HNZ) reported modest results for the first quarter with earnings of 67 cents per share, which was 5 cents above the Zacks Consensus Estimate of 62 cents. However, earnings were down 6.9% year over year.

Quarterly net sales fell 4.5% year over year to $2.47 billion, primarily attributable to a 9% unfavorable impact from foreign exchange and a 4.3% drop in volume. The declines were partially offset by a 6% gain from pricing and a 2.9% benefit from divestitures. The current economic weakness reduced the overall product demand and hurt the top line. Organic sales, excluding the impact of foreign exchange, grew 1.7% during the quarter.

The North American Consumer Products segment reported a 1.9% drop in sales as volumes fell 4.9%. The decline was attributable to lower promotional volume in Ketchup and frozen meals, which was partially offset by increases from the new T.G.I. Friday’s snacks

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Abu Dhabi-based Agthia Group, a holding company with three subsidiaries operating in the distribution and bottling of mineral water; the production of flour, animal feed and frozen and canned vegetables and the distribution of baby food, tea, juices and jam, reported strong growth (group sales up 18.7%; gross profit margin up 11.4%; and net profits doubled) for the first six months of 2009. Per its Chairman, Rashid Mubarak Al Hajeri, the results are a “testament to the defensive nature of the food and beverage sector. The growth registered this quarter builds upon the strong first quarter performance and sets a positive scene for the rest of the year. Agthia’s performance for the first half of 2009 demonstrates the strength of the company’s core businesses and the effective implementation of management’s strategic and financial initiatives.” According to analysts,

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Ralcorp Holdings, Inc. (...

The Coca-Cola Co. (KO) announced yesterday (Wednesday) that it will buy China Huiyuan Juice Group Ltd. for $2.3 billion (HK$17.9 billion) in an effort to diversify its presence in one of the world’s fastest-growing beverage markets. But the deal still requires government approval, which is anything but guaranteed. Coca-Cola’s offer of $1.56 per share (HK$12.20) is more than triple China Huiyuan’s recent closing price of HK$4.14 a share. It is the company’s largest overseas acquisition to date, and the biggest foreign takeover of a Chinese company ever. The deal values Huiyuan at 46.6 times this year’s estimated earnings, according to Bloomberg data. "It’s a sizeable offer, but certainly a very smart one," said Lou Basenese, editor of the Oxford Club’s Takeover Trader. "It’s better than building everything from ground zero. It’s a shortcut into a promising market." By 2025, ...