www.campbellsoupcompany.com
Campbell Soup Company is a global manufacturer and marketer of foods and simple meals, including soups and sauces, baked snacks, and healthy beverages.
Campbell Soup Q2 profit drops 14%, but still tops views
Campbell Soup Company (NYSE:CPB) said Friday its fiscal second quarter profits declined as US soup sales fell, but earnings still beat Street estimates.
The soup maker also reiterated its full year fiscal 2012 guidance. Campbell said it continues to expect revenue growth between flat and two percent, and adjusted earnings between $2.35 and $2.42 per share.
For the three months that ended January 29, 2012, the company posted net earnings of $205 million, or $0.64 per share, down 14 percent from $239 million, or $0.71 per share, a year ago.
The latest quarter's earnings included charges related to the company's June 2011 restructuring program.
Excluding these items, profits were $207 million, or $0.64 per share.
Analysts polled by Thomson Reuters had expected 62-cents per share in profits.
Sales for the quarter fell one percent to $2.1 billion, reflecting higher promotional spending, as the negative effect of volume and product mix was offset by the benefit of price and sales allowances, the company said.
Gross profit margins for the period also declined, shedding 100 basis points to 38.4 percent.
Campbell president and CEO, Denise Morrison, said: "At the midpoint of our fiscal year, we are focused outward on consumers and on executing against our three strategies to return Campbell to sustainable, profitable net sales growth.
"As we said last July, implementing our new strategic direction will require substantial investment to fund brand-building efforts and a step change in innovation, particularly in U.S. Simple Meals. We are confident that these changes will position Campbell for future success.
"We are executing a strategic turnaround in an environment of weak volume and high inflation across the food industry. We will continue to invest in brand building and innovation, and we are on track to achieve our full-year guidance."
Sales under the company's U.S. simple meals segment fell two percent to $824 million, as a five percent decline in volume and product mix offset a three percent boost from price and sales allowances. U.S. soup sales fell two percent, as did U.S. sauces.
Campbell's U.S. beverages business, however, posted a four percent increase in sales, to $187 million, driven by growth in its V8 Splash-branded drinks.
The global baking and snacking segment posted sales of $526 million, flat against the year-ago period, while international simple meals and beverages sales fell five percent to $402 million, reflecting weak results in Europe and Canada, the company said.
Sales under its North America foodservice business increased nine percent to $173 million, reflecting volume-driven gains in fresh chilled soup.
In New York, shares of the Camden, New Jersey-based company rose 1.37 percent in pre-market trading Friday, to $32.50 as of 8:22 am EDT.
