Heinz profit up; Hormel hurt by turkey costs

By Brad Dorfman CHICAGO (Reuters) - Price increases and new product sales helped H.J. Heinz Co post a bigger-than-expected rise in quarterly profit on Thursday, while earnings fell at Spam lunch meat maker Hormel Foods Corp because of increased costs at its Jennie-O turkey business. Like most food companies, Heinz and Hormel have suffered from rising commodity costs. But soaring corn feed costs particularly hit Hormel, since it also raises turkeys that it sells. Heinz, whose shares have risen nearly 11 percent this year, has been one of the better-performing food companies as it benefits from its business overseas, new products in the United States and increased spending on marketing. The world's largest ketchup maker has also sold more products overall. Despite the price increases, volume rose 5 percent in the first quarter... [read full story]