UPDATE 1-Heinz profit falls, raises full-year view

Tue Nov 24, 2009 7:22am EST

* Q2 EPS $0.73, EPS from continuing ops $0.76

* Sales rose 2.5 pct to $2.67 bln

* Sees 2010 EPS from continuing ops $2.72-$2.82

CHICAGO, Nov 24 (Reuters) - H.J. Heinz Co HNZ.N posted a lower quarterly profit on Tuesday, hurt by sales declines in North America and Europe, but said it is optimistic about its sales momentum heading into the second half of its fiscal year and raised its full-year profit forecast.

The maker of ketchup, Smart Ones frozen entrees and Ore-Ida potatoes said it earned $231.4 million, or 73 cents a share, for the second quarter ended Oct. 28, down from $276.7 million, or 87 cents per share, a year earlier. The previous year's results included a sizable gain from currency hedging.

Heinz earned 76 cents per share from continuing operations, down 10 cents per share from a year earlier.

Economic weakness in European markets has pressured Heinz, while competitors like Nestle SA (NESN.VX) have aggressively promoted in the frozen food market.

Sales rose 2.5 percent to $2.67 billion.

For 2010, Heinz now expects to earn $2.72 per share to $2.82 per share from continuing operations, up from a prior target of $2.60 to $2.70. (Reporting by Jessica Wohl, editing by Gerald E. McCormick) ((jessica.wohl@thomsonreuters.com +1 312 408 8132; Reuters Messaging: jessica.wohl.reuters.com@reuters.net;)) ((See blogs.reuters.com/shop-talk/ for Shop Talk -- Reuters' retail and consumer blog)) ((Multimedia versions of Reuters Top News are now available for: * 3000 Xtra: visit topnews.session.rservices.com

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