By Jessica Wohl

CHICAGO (Reuters) - U.S. food makers H.J. Heinz Co <HNZ.N> and Hormel Foods Corp <HRL.N> said they expect sales to rise in the coming months as consumers stick to more frugal habits such as eating meals at home instead of going out.

Still, results in the latest quarter failed to impress investors, who had expected both companies to get more of a lift from Americans' constrained dining habits in the downturn.

Heinz, which makes ketchup and Ore-Ida frozen potatoes, posted a lower quarterly profit on Tuesday, hurt by sales declines in North America and Europe. But it is optimistic about sales heading into the second half of its fiscal year and raised its 2010 profit forecast.

This year, Heinz has faced intense promotional discounting in the frozen food section by competitors like Nestle SA's <NESN.VX> Lean Cuisine. It will respond by increasing marketing by about 40 percent on its Smart Ones frozen meals and bringing out a few new Smart Ones products in the spring.

Hormel, which makes Spam lunch meat and Jennie-O turkey, posted a higher-than-expected quarterly profit due to lower hog prices and stronger sales of its namesake chili. It said earnings should rise in the current fiscal year.

Shares of Hormel fell 1.9 percent to $38.16 in midday, while Heinz shares rose 0.3 percent to $43.30.

HEINZ SALES UP DESPITE FOREX

Heinz earned $231.4 million, or 73 cents a share, for the second quarter ended October 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.

The earnings topped expectations, helped in part by a lower tax rate, according to JP Morgan analyst Terry Bivens.

Sales rose 2.5 percent to $2.67 billion, topping analysts' forecasts. Heinz said foreign exchange cut sales by 1 percentage point.

Bivens said he was disappointed by Heinz's 4.1 percent volume decline, particularly the weakness in North America, where volume fell 8 percent. Heinz attributed some of that fall to comparisons from a strong showing a year ago, when retailers stocked up ahead of price hikes.

Like many food companies, Heinz raised prices in the past year to help offset what were soaring commodity costs.

The company has since seen the benefit of those price increases while costs for commodities have eased. Still, it faces higher costs for tin plate, tomatoes and potatoes.