H.J. Heinz Co is "within sight of our22nd consecutive year of new records in financial growth" for
the fiscal year ending April 30, Chairman and Chief Executive
Officer Anthony O'Reilly told investment analysts.
    O'Reilly, who declined to make a specific projection, said
the food company is "stronger than at any time in its 118-year
history."
    Last week Heinz reported third-quarter earnings rose to 55
cts a share from 46 cts a share. Sales rose to 1.08 billion
dlrs from 1.01 billion dlrs a year earlier.
    O'Reilly said Heinz will concentrate on backing its big
brands, new products and services, new geography, internal
growth and acquisitions.
    He said Heinz Ketchup has its highest market share in
history, 55 pct. But in response to a question, the executive
said a volume falloff in the overall product category "is a
concern to us."
    O'Reilly said Weight Watchers continues to perform well and
will generate revenue in fiscal 1987 of approximately 940 mln
dlrs.
    O'Reilly told analysts Heinz is in active negotiations to
build a second plant in China, where it entered a joint venture
with the government in 1984, forming Heinz-UFE Ltd, which
produces dry baby food cereal.
    He said Heinz-Japan is "making a profit and generating its
first substantial dividends," and implementation of a new
partnership, Seoul-Heinz Ltd, is moving ahead with a new
manufacturing plant targeted for completion by June in Seoul,
South Korea.
    To increase its competitiveness, O'Reilly said Heinz
implemented a "lowest cost imaginable" program targeted at
manufacturing, sales and marketing and procurement.
    He said a modernization program is in effect at the
company's United Kingdom operations, where the labor force,
trimmed to 4,000 from 10,000, is expected to be further reduced
to 2,500 in 1988.
 Reuter
