Campbell Profit Rises in Q4

07/09/07 Campbell Soup Company has reported earnings from continuing operations for the fourth quarter ended July 29, 2007 of $53 million, or $.14 per share, compared to $84 million, or $.20 per share, in the year-ago quarter. Earnings per share from continuing operations were $.14 compared to an adjusted $.19 a year ago, which excludes items impacting comparability, a decrease of 26 percent. For the year, excluding items impacting comparability, earnings per share from continuing operations were $1.95 compared to $1.73 in fiscal 2006, an increase of 13 percent.

Douglas R. Conant, Campbell's President and Chief Executive Officer, said, "We finished fiscal 2007 with strong sales performance in the fourth quarter across all of our reporting segments, despite flat U.S. soup sales. We delivered earnings consistent with our guidance at the end of the third quarter while making increased investments in marketing and our supply chain.”

"For the year, our overall results were outstanding. Our performance in fiscal 2007 demonstrated the strength of our businesses within the simple meals, baked snacks, and vegetable-based beverages categories. Our sales growth from continuing operations of 7 percent was above our target range, and our earnings per share growth from continuing operations of 13 percent, on an adjusted basis, also exceeded our long-term target. By continuing to leverage our competitive advantages in our key categories, Campbell is well positioned for quality sales and earnings growth.

Conant continued, "We achieved our outstanding fiscal 2007 results while making key investments in our businesses and systems. In our international business, we expanded our global focus by preparing for major product introductions in Russia and China, the world's two largest soup consumption markets with the highest growth potential. In our core U.S. soup business, we continued to drive improvements in quality, convenience, and wellness. We expanded our distribution capabilities and addressed the increased volume requirements of our growing beverage business. And finally, we continued our successful SAP installation in the U.S. All of these investments are designed to ensure Campbell's performance is sustainable over the long term."

Conant concluded, "For fiscal 2008, we expect our continuing operations to deliver sales growth in excess of our long-term target range of between 3 and 4 percent, due in part to a 53rd week of sales in the fiscal year. We also expect to deliver EBIT growth between 7 and 9 percent from the fiscal 2007 adjusted base of $1.250 billion and earnings per share growth between 5 and 7 percent from the fiscal 2007 adjusted base of $1.95, consistent with our long-term EPS growth target. Our EPS outlook reflects a significantly higher tax rate for fiscal 2008, which we noted previously, somewhat offset by the 53rd week of sales."

For the quarter, Campbell reported earnings from continuing operations of $53 million, or $.14 per share, compared to $74 million, or $.19 per share, in the year-ago quarter, which excludes items impacting comparability.