Financial Highlights

H.J. Heinz Company and Subsidiaries

2006 2005 2004
(Dollars in thousands, except per share amounts) (53 Weeks) (52 Weeks) (52 Weeks)
Sales $8,643,438 $8,103,456 $7,625,831
Operating income(1) 1,113,612 1,281,472 1,276,089
Income from continuing operations(2) 442,761 688,004 715,451
Net income(3) 645,603 752,699 804,273
Per common share amounts:
  Income from continuing operations – diluted $ 1.29 $ 1.95 $ 2.02
  Net income – diluted 1.89 2.13 2.27
  Cash dividends 1.20 1.14 1.08
Cash from operations $1,074,961 $1,160,793 $1,249,007
Capital expenditures 230,577 240,671 231,961
Depreciation and amortization 247,433 235,571 217,677
Property, plant and equipment, net 1,900,557 2,163,938 2,057,286
Cash, cash equivalents and short-term investments $ 445,427 $1,083,749 $1,180,039
Cash conversion cycle (days) 56 58 64
Total debt 4,411,982 4,695,253 4,974,430
Shareholders' equity 2,048,823 2,602,573 1,894,189
Average common shares outstanding – diluted 342,121 353,450 354,372
Debt/invested capital 68.3% 64.3% 72.4%
Dividend/share 1.20 1.14 1.08
Share repurchases $ 823,370 $291,348 $170,129
  1. Operating income in fiscal years 2006, 2005 and 2004 was impacted by special charges/(benefits) of $236.4 million, $27.0 million and $(8.2) million, respectively.
  2. Income from continuing operations in fiscal years 2006, 2005 and 2004 was impacted by special charges of $274.9 million, $91.8 million and $0.2 million, respectively.
  3. Net income in fiscal years 2006, 2005 and 2004 includes income from discontinued operations of $202.8 million, $64.7 million and $88.8 million, respectively.

See Management’s Discussion and Analysis for details.

Innovation and Quality Center

The Heinz Global Innovation and Quality Center opened in September 2005 north of Pittsburgh. The Center is home to more than 100 chefs, food technologists, nutritionists, microbiologists, packaging engineers and quality assurance specialists. It also houses Heinz’s International Center of Excellence for Ketchup & Sauces. Here resides Heinz’s unparalleled tomato knowledge, which contributes to producing better-tasting tomatoes for our famous Heinz® Ketchup, Classico® premium sauces, and a host of other tomato-based varieties for our global retail and foodservice businesses. Pictured in the upper right window are Vice President of Innovation and Quality Jim Matthews, and Research and Development Manager Beth Ritchey.

Financial
Highlights
To Our
Shareholders
Growth Through
Innovation
Ketchup
& Sauces
Meals
& Snacks
Infant
Foods
Corporate
Responsibility