Campbell: Lowers 2011 Full-Year Guidance

Camden / NJ. (csc) Campbell Soup Company announced that it is lowering its full-year guidance due to first quarter results that were weaker than originally planned and the company´s current outlook for the remainder of the year. Campbell attributes its change in guidance to increased promotional spending that resulted in lower-than-planned purchases of its soup by U.S. consumers, amid weak economic conditions and intense competitive pricing activity.

For the first quarter, Campbell estimates a decline in net sales of one percent, and declines in earnings before interest and taxes (Ebit) and earnings per share (EPS) of seven percent and six percent, respectively. Campbell will report first-quarter results on November 23, 2010.

For the full year, including an estimated one-point favorable impact from currency, Campbell now anticipates net sales growth of one to three percent, Ebit comparable to the prior year and EPS growth of two to four percent from the fiscal 2010 adjusted base of 2,47 USD.

Douglas R. Conant, Campbell´s President and CEO: «Our increased promotional spending in the first quarter behind U.S. soup did not produce the planned volume gains. This result was due in part to even deeper soup promotions by competitors, which we chose not to match. While economic conditions remain challenging and competition intense, especially in U.S. soup, many of our businesses continue to perform well. Over the balance of the year, we believe that revised promotional strategies and continued cost and expense initiatives will yield stronger results, especially in the second half of the year. We will provide additional details on our results and plans when we report the first quarter on November 23».