CAMDEN, N.J.–(BUSINESS WIRE)–April 28, 2008–Campbell Soup
Company (NYSE:CPB) today announced a series of initiatives designed to
improve the company’s operational efficiency and enhance its long-term
profitability. Details of Campbell’s actions include:
-- Closing the Listowel, Ontario, Canada food plant. The Listowel
facility produces primarily frozen products, including soup,
entrees and Pepperidge Farm products, as well as ramen
noodles. The facility employs approximately 500 people.
Campbell plans to operate the facility for approximately 12
months and then transition production to its network of North
American contract manufacturers and to its Downingtown,
-- Exiting the snack foods business in Australia. Campbell has
entered into an agreement to sell its Australian snack foods
business to a group of Australian investors, including senior
management of The Real McCoy, an Australian owned snack foods
company. The transaction includes the following salty snack
brands: Cheezels, Thins, Tasty Jacks, French Fries, and Kettle
Chips. The transaction also includes two plants in Australia
that currently produce snack foods. Campbell expects to
complete the transaction in the fourth quarter of fiscal 2008.
-- Discontinuing private label biscuit and industrial chocolate
production at its Miranda, Australia facility. Subject to
union consultation, Campbell plans to close the Miranda
facility, which employs approximately 150 people.
In addition to these actions, Campbell plans, subject to legal
requirements, to streamline its international management structure and
eliminate certain overhead costs associated with businesses the
company has divested.
Campbell anticipates that it will incur pre-tax charges and
implementation costs of approximately $230 million related to these
initiatives. These charges will be incurred primarily in the third and
fourth quarters of fiscal 2008. The company expects that the future
savings from these actions will have a modestly favorable impact on
earnings and cash flow beginning in its fiscal year 2009. Campbell
will provide more detail on these initiatives through a public filing
and when it reports third quarter results on May 19, 2008.
Douglas R. Conant, Campbell’s President and Chief Executive
Officer, said, “The actions announced today will continue to position
Campbell as a high-performing focused food company. Through a
relentless focus on our core businesses of simple meals, baked snacks
and healthy beverages and by eliminating inefficiencies in our
portfolio and operations, we will be able to meet the needs of
customers and consumers faster, better and more completely than the
competition and create greater value for our shareowners.”
About Campbell Soup Company
Campbell Soup Company is a global manufacturer and marketer of
high-quality foods and simple meals, including soup, baked snacks, and
healthy beverages. Founded in 1869, the company has a portfolio of
market-leading brands, including “Campbell’s,” “Pepperidge Farm,”
“Arnott’s,” and “V8.” For more information on the company, visit
Campbell’s website at www.campbellsoup.com.
This release contains “forward-looking statements” that reflect
the company’s current expectations about its future plans and
performance, including statements concerning the impact of cost-saving
initiatives and portfolio strategies, including divestitures, on
sales, earnings, cash flows and margins. These forward-looking
statements rely on a number of assumptions and estimates that could be
inaccurate and which are subject to risks and uncertainties. Actual
results could vary materially from those anticipated or expressed in
any forward-looking statement made by the company. Please refer to the
company’s most recent Form 10-K and subsequent filings for a further
discussion of these risks and uncertainties. The company disclaims any
obligation or intent to update the forward-looking statements in order
to reflect events or circumstances after the date of this release.
CONTACT: Campbell Soup Company
Anthony Sanzio (Media), 856-968-4390
Leonard F. Griehs (Analysts), 856-342-6428
SOURCE: Campbell Soup Company
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