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».
OTHER TOPICS FROM THIS SECTION FOR YOU:
- Reborn Coffee takes over Korean Bbang Ssaem Bakery
- SSP Group: announces Third Quarter Trading Update 2024
- LG Chem and ADM: Joint Ventures in Illinois are canceled
- Wendy’s: Company plans to expand into Europe
- Delivery Hero: may face significant fine due to antitrust violations
- Emmi Group: intends to acquire Mademoiselle Desserts
- AB Foods: announces strong H1-2024 performance
- DSM-Firmenich: Queen Maxima inaugurates new dual head office
- RBI: Announces Investments to Drive Growth in China
- Europastry S.A.: puts its IPO process on hold
- McCormick: Reports Second Quarter Performance
- Reborn Coffee: Closes Master License Agreement for UAE
- General Mills: Reports Fiscal 2024 Fourth-Quarter Results
- SunOpta expands plant for processing plant-based beverages
- Britannia: Operating profit grew 10 percent in FY-2023
- Tate + Lyle and CP Kelco to merge to leading global player
- Ülker Bisküvi: announces Q1-2024 financial results
- Europastry: intends to go public on the Spanish stock exchange
- Europastry S.A.: publishes 2023 Annual Report
- Swisslog: announces new Americas region headquarters