Campbell Profits Up 11% in Q2

As announced last week, Campbell maintained its full-year guidance for adjusted earnings growth before interest and taxes (EBIT) of 6 to 7 percent and adjusted net earnings per share growth of 9 to 11 percent from the fiscal 2009 adjusted base of $2.21.

23 Feb 2010 --- Net earnings for the quarter ended Jan. 31, 2010 were $259 million compared with $233 million in the prior year, an increase of 11 percent. Net earnings per share were $0.74 in the current quarter compared with $0.64 in the prior period, an increase of 16 percent.

Douglas R. Conant, Campbell's President and CEO, said, "In the quarter, we delivered good earnings growth driven mainly by overall strong cost management, productivity gains and favorable currency. In particular, our Baking and Snacking and International Soup, Sauces and Beverages segments improved their earnings performance.

"In U.S. Soup, Sauces and Beverages, earnings declined due to lower sales, particularly in ready-to-serve soup. Our condensed soup business, especially cooking varieties, and our broth business both delivered solid performance and remained well positioned in this economic environment. In the ready-to-serve business, our lower promotional spending and intense competitive activity in the broader simple meals category impacted our results. We have plans in place to drive improved performance in ready-to-serve soup in the second half."

Conant concluded, "Looking ahead, we remain on track to deliver good bottom-line growth for the year supported by continued cost management and productivity gains. Based on our results through the first half and our plans for the remainder of the year, last week we reiterated our full-year guidance for adjusted net earnings per share growth and adjusted earnings growth before interest and taxes, despite more modest assumptions for sales growth."

As announced last week, Campbell maintained its full-year guidance for adjusted earnings growth before interest and taxes (EBIT) of 6 to 7 percent and adjusted net earnings per share growth of 9 to 11 percent from the fiscal 2009 adjusted base of $2.21. The company revised its fiscal 2010 guidance for sales growth to 2.5 to 3.5 percent from the prior range of 4 to 5 percent.

This guidance includes the anticipated impact of currency translation. At quarter-end rates of exchange, the full-year impact of currency would be favorable by 3 to 4 percentage points.