Campbell: «Baking and Snacking» earnings up 7 percent

Camden / NJ. (csc) Campbell Soup Company reported that its fiscal first-quarter earnings slipped 7,2 percent due to rising commodity and promotional costs, and a delayed start to «soup season». For the period ending October 28, the world´s largest soup company earned 270 million USD, or 0,70 USD per share, down from 291 million USD, or 0,72 USD per share in the first quarter 2007.

Due to Campbell Soup´s buyback program, earnings per share reflect a lower average number of outstanding diluted shares. While earnings fell, sales increased seven percent to 2,298 billion USD. Further details are posted at Campbell´s virtual «Investor Center». The summary of fiscal 2008 first quarter results includes highlights for the company´s segments «U.S. Soup, Sauces and Beverages», «Baking and Snacking», «International Soup, Sauces and Beverages» and «Other».

Inside «Baking and Snacking» Campbell posted following results for its bakery and snack business: Sales were 532 million USD, up ten percent from a year ago. A breakdown of the change in sales follows:

• Volume and mix added three percent
• Price and sales allowances added three percent
• Currency added five percent
• The divestiture of the company´s Papua New Guinea operations subtracted one percent

Further details of sales results include the following details:

• Pepperidge Farm achieved sales growth with gains in each of its businesses-bakery, cookies and crackers, and frozen.
  • In the cookies and crackers business, sales gains were driven primarily by the growth of «Goldfish» crackers and strong performance of soft baked and 100-calorie pack cookies.
  • The bakery business also delivered solid sales gains behind whole-grain breads, sandwich rolls, and bagels.
  • Arnott´s sales increased double digits primarily due to the favorable impact of currency and gains in the biscuits business, partially offset by declines in the snack foods business. The growth in the biscuit business was due to gains in «Tim Tam» chocolate biscuits, as well as sweet and savory products.

Operating earnings were 73 million USD compared with 68 million USD in Q1/2007 (plus 7,3 percent). The increase in operating earnings was driven by the favorable impact of currency. Within Arnott´s, gains in the biscuit business were offset by an earnings decline in the snack foods business. In Pepperidge Farm, sales gains were offset by the impact of higher commodity costs.

_{About: Campbell Soup Company is a global manufacturer and marketer of high quality foods and simple meals, including soup, baked snacks, vegetable-based beverages, and premium chocolate products, with annual revenues in excess of 7,8 billion USD. Founded in 1869, the company has a portfolio of market-leading brands.}