Campbell achieves strong results

23/05/06 Campbell Soup Company has reported net earnings increased to $166 million in the third quarter ended April 30, 2006 from $146 million in the prior year. Net sales were $6,227 million for the first nine months of fiscal year 2006, an increase of 3 percent compared with the year-ago period. For the first nine months of fiscal year 2006, the company reported net earnings of $722 million versus $611 million a year earlier and earnings per share of $1.74 versus $1.48 reported in the year-ago period.

Sales for US Baking and Snacking were $422 million versus $421 million in the year- ago period. Sales for U.S. Soup, Sauces and Beverages were $713 million, a 14 percent increase compared with a year ago. Sales for International Soup and Sauces were $430 million, a 1 percent decline compared with a year ago.

Douglas R. Conant, Campbell's President and Chief Executive Officer, said, "We delivered an outstanding quarter. Our U.S. soup business was exceptionally strong on both the top and bottom line. Our strategy to direct our marketing spending toward better communicating the quality, convenience and value of our soups and away from heavy promotional activity worked very well for the quarter and year to date. Our continued emphasis on innovation and more effective marketing programs, including advertising, is working. As we look ahead to next soup season with our strategic initiatives to introduce lower sodium soups and expand our premium soup offerings, we plan to increase our investment to leverage this year's momentum.

"Beyond U.S. soup, we also delivered strong results in our U.S. sauce and beverage businesses, as well as Pepperidge Farm and Canada. While we are pleased with the overall performance of our North American business, our international business is performing below our growth expectations. We are taking actions to improve the overall performance of our international portfolio."

Conant continued, "Previously, we provided guidance that we expected our fiscal 2006 earnings per share to increase between 5 and 7 percent from the adjusted fiscal year 2005 base of $1.64. Based on our strong year-to-date performance, we now expect that our fiscal 2006 earnings per share will increase between 9 and 10 percent from this adjusted base."