Maker of ketchup, Smart Ones frozen entrees and Ore-Ida potatoes, H.J. Heinz Co. posted earnings report for the second quarter up-to October 28, which revealed a decline in profits. The company claims that it has been hurt by falling sales across North America and Europe, but is highly optimistic about the upcoming second half of the current fiscal year on the back of an improving economy.

For the second quarter, the company posted earnings of $231.4 Million, or 73 cents a share, a substantial fall from the $276.7 Million, or 87 cents per share, posted for the same period last year. Last year's profit included a huge gain from currency hedging. From continuing operations, the firm earned 76 cents a share, down 10 cents a share from last year.

Heinz is currently under increasing pressure from a weak European economy and sales which are rapidly falling. Its competitors, Nestle for example, are now, on the other hand, aggressively promoting in the frozen food sector.

All was not bleak in the second quarter, as sales did record a slight 2.5% rise to $2.67 Billion, but the figure is still quite low from what the ketchup maker is used to.

Despite the low earnings posted, the company is optimistic about coming times, and for 2010, Heinz now expects to earn per share value of $2.72 to $2.82, up from the earlier expectation of $2.60 to 2.70.