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Campbell Reports First Quarter Earnings Per Share at $.42; Shipments Of U.S. Soup Increased 6 Percent

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CAMDEN, N.J., Nov. 14 /PRNewswire/ — Campbell Soup Company (NYSE: CPB)
today reported diluted earnings per share for the first quarter ended October
28, 2001, of $.42, down 11 percent or $.05 from the same period last year.
This result is consistent with the company’s October 30, 2001, announcement
that it expected diluted earnings per share for the first quarter to be
between $.40-$.42.

(Photo: https://www.newscom.com/cgi-bin/prnh/20010129/HSM035LOGO )

Net sales in the quarter increased 9 percent to $1.7 billion. The
following factors drove the increase:

For the quarter, shipments of U.S. soup increased 6 percent compared to a
year ago, which drove a worldwide wet soup shipment increase of 7 percent.

Net earnings were $171 million, down 16 percent versus a year earlier.
Excluding the impact of the previously announced reconfiguration of
manufacturing operations in Australia, net earnings for the quarter were
$174 million, down 15 percent compared to $204 million a year earlier. The
lower earnings are a result of the company’s strategic transformation plan
announced in July, which included a significant increase in marketing
investment across the portfolio. Total marketing investment for the quarter
was up 20 percent before the impact of currency and the European acquisition.

As announced on October 30, the company’s sales performance is principally
the result of stronger than expected shipments of U.S. soup and sauce products
resulting from positive consumer trends. In early September, as planned, the
company began a major increase in marketing programs that continued throughout
the quarter. During the period immediately following September 11, the
company experienced a significant acceleration in shipments of U.S. soup and
sauces. In October, shipments continued to be higher than a year ago.

For the full fiscal year, the company is maintaining its previous earnings
estimate of approximately $1.30 per share, excluding the impact of the
Australian reconfiguration. For the 2002 second quarter, the company expects
diluted earnings per share to be between $.48-$.52, excluding the impact of
the Australian reconfiguration.

Douglas R. Conant, President and Chief Executive Officer, said, “We are
pleased with the impact our increased marketing investments and innovation are
beginning to have on our marketplace performance. For example, North America
Soup, North America Sauces, Pepperidge Farm and our businesses in Europe and
Australia had strong sales driven by increased advertising and new products.
However, it is important to note that the tragic events of September 11
created unusual circumstances in the U.S. for part of the first quarter.
While the year has started strong and we are well positioned moving into the
heart of the U.S. soup season, it is difficult to determine how shipments will
trend going forward. We will continue implementing our investment and
innovation plans to put Campbell back on a sustainable growth track.”

In addition, for the quarter the company reported:

In connection with its previously announced strategic transformation plan,
the company is changing its reporting segments to reflect the new organization
of its businesses. The new segments are:

A summary of fiscal 2002 first quarter results by the new segments
follows:

North America Soup and Away From Home

Sales for the quarter increased 4 percent or $32 million to $806 million
driven by the 6 percent increase in U.S. soup shipments. Operating earnings
were $229 million, down 11 percent. As expected, this decline resulted from
the company’s previously announced plans to significantly increase marketing
investments.

Shipments of condensed soup increased 1 percent led by “Campbell’s”
Red & White Chicken Noodle, Cream of Mushroom and Tomato icons. Shipments of
ready-to-serve soup increased 17 percent behind excellent performances of
“Chunky” and “Select.” Ready-to-serve “Swanson” broth shipments increased
7 percent.

Shipments of eating soups increased 7 percent driven by “Chunky” and
“Select.” Cooking soups increased 4 percent due to growth in “Swanson” broth
and “Campbell’s” Red & White condensed Cream of Mushroom.

“Campbell’s Supper Bakes” meal kit was launched nationally and achieved
targeted distribution.

North America Sauces and Beverages

Sales for the quarter increased 5 percent or $14 million to $313 million.
Operating earnings decreased by 18 percent to $59 million. The anticipated
earnings decline was driven by a significant increase in marketing.

Biscuits and Confectionery

Biscuits and Confectionery sales for the quarter increased 3 percent to
$379 million. Excluding the impact of currency, sales grew 6 percent driven by
increased marketing investments and new product innovations. Operating
earnings were down 16 percent, 13 percent before currency, to $38 million,
excluding the impact of the Australian manufacturing reconfiguration. This
decline resulted from increased marketing support for all businesses and flat
sales for Godiva.

Pepperidge Farm delivered strong sales performance across its portfolio
with increased shipments of cookies, crackers, breads and frozen products.
Several new products, including “Giant Goldfish” sandwich crackers, “Dessert
Bliss” cookies and new varieties of “Farmhouse” bread and rolls and “Texas
Toast” bread, contributed to this growth. “Milano” cookies also performed
well.

Godiva Chocolatier’s sales and earnings were negatively impacted by the
events of September 11. New York City stores located at the World Trade
Center and World Financial Center were previously two of its largest volume
locations. Worldwide sales were up slightly as new retail outlets continued to
open around the world.

Before the impact of currency, Arnotts in Australia reported strong sales
driven by new products, including “Emporio” biscuits and “Rix Rice Chips.”

International Soup and Sauces

International Soup and Sauces sales for the quarter increased 64 percent
to $231 million. Excluding the impact of the European acquisition and
currency, sales grew 3 percent.

Operating earnings were up 64 percent to $23 million. Excluding the
impact of the European acquisition and currency, earnings were down
14 percent. This earnings decline resulted from a planned significant increase
in marketing investments.

In Europe, base sales were up slightly versus a year earlier. The newly
acquired European dry soup and sauces business met pre-acquisition
projections. In the United Kingdom, “Homepride’s” Sizzlin’ cooking sauces
performed well. In addition, Liebig’s new “Delisoup” in France had a solid
start.

In Asia/Pacific, consumer purchases of “Campbell’s” soups in Australia
increased 4 percent.

Reporting Changes

U.S. consumer purchase data as reported by A.C. Nielsen and Information
Resources, Inc. do not contain complete sales from food, drug and mass
merchandise outlets. Several large retailers, now including Wal-Mart, choose
not to report sales to these information services. This makes the data from
these services less reliable as an indicator of true consumer activity. As a
result, Campbell will no longer provide consumer purchases for all U.S.
consumer products. Instead, the company will report this information using
shipment data.

The company adopted the Emerging Issues Task Force (EITF) consensus on
Issue No. 00-10 “Accounting for Shipping and Handling Fees and Costs” in the
fourth quarter fiscal 2001. In the first quarter of fiscal 2002, the company
adopted EITF Issues No. 00-14 and 00-25, which address the measurement and
income statement classification of certain consumer and trade sales promotion
expenses such as coupon redemption costs, cooperative advertising programs and
store display incentives.

Conference Call

The company will host a conference call to discuss these results on
November 14, 2001 at 10:00 a.m. Eastern Standard Time. U.S. participants may
access the call at 1-877-601-3547 and non-U.S. participants at 312-470-7280.
Participants should call at least five minutes prior to the starting time. The
passcode is Campbell Soup. The conference leader is Len Griehs. The call will
also be broadcast live over the Internet at https://www.campbellsoup.com and
can be accessed by clicking on the Webcast banner. A recording of the call
will be available approximately two hours after it is completed through
midnight November 19, 2001 at 1-800-839-5570 or 1-402-998-0911.

Forward-Looking Statements

This release contains “forward-looking statements” which reflect the
company’s current expectations about its future performance. These
forward-looking statements rely on a number of assumptions and estimates which
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.

About Campbell Soup Company

Campbell Soup Company is a global manufacturer and marketer of high
quality soup, sauces, beverage, biscuits, confectionery and prepared food
products. The company owns a portfolio of more than 20 market-leading
businesses each with more than $100 million in sales. They include
“Campbell’s” soups worldwide, “Erasco” soups in Germany and “Liebig” soups in
France, “Pepperidge Farm” cookies and crackers, “V8” vegetable juices, “V8
Splash” juice beverages, “Pace” Mexican sauces, “Prego” Italian sauces,
“Franco-American” canned pastas and gravies, “Swanson” broths, “Homepride”
sauces in the United Kingdom, “Arnott’s” biscuits in Australia and “Godiva”
chocolates around the world. The company also owns dry soup and sauce
businesses in Europe under the “Batchelors,” “Oxo,” “Lesieur,” “Royco,”
“Liebig,” “Heisse Tasse,” “Bla Band” and “McDonnells” brands. The company is
ably supported by approximately 24,000 employees worldwide. For more
information on the company, visit Campbell’s website on the Internet at
www.campbellsoup.com .

                      CAMPBELL SOUP COMPANY CONSOLIDATED
                       STATEMENTS OF EARNINGS (unaudited)
                      (millions, except per share amounts)

                                                     THREE MONTHS ENDED
                                                  October          October
                                                 28, 2001         29, 2000

    Net sales                                      $1,729           $1,581

    Costs and expenses
        Cost of products sold                         971              856
        Selling, general and
         administrative expenses                      444              362
    Total costs and expenses                        1,415            1,218

    Earnings before interest and
     taxes                                            314              363
         Interest, net                                 53               52
    Earnings before taxes                             261              311

    Taxes on earnings                                  90              107
    Net earnings                                   $  171           $  204

    Per share - basic
        Net earnings                               $  .42           $  .48

        Dividends                                  $.1575           $ .225

    Weighted average shares outstanding -
     basic                                            410              421


    Per share - assuming dilution
        Net earnings                               $  .42           $  .47

Weighted average shares outstanding

– assuming dilution 411 431
In the first quarter fiscal 2002 ended October 28, 2001, the company adopted
new accounting standards related to the recognition, measurement and income
statement classification of certain consumer and trade promotional expenses,
such as coupon redemption costs, cooperative advertising programs and in-store
display incentives. In the fourth quarter of last year, the company adopted
new guidance on the classification of shipping and handling costs. As a
result, the following reclassifications were made to the first quarter fiscal
2001 ended October 29, 2000, statement of earnings: Net sales were reduced by
$197; Cost of products sold was increased by $49; and Selling, general and
administrative expenses were reduced by $246.

                      CAMPBELL SOUP COMPANY CONSOLIDATED
           SUPPLEMENTAL SCHEDULE OF SALES AND EARNINGS (unaudited)
                     (millions, except per share amounts)

                                       THREE MONTHS ENDED
                                       October    October   Percent
    Sales                             28, 2001   29, 2000    Change
    Contributions:
       North America Soup and Away
        From Home                       $  806     $  774        4%
       North America Sauces and
        Beverages                          313        299        5%
       Biscuits and Confectionery          379        367        3%
       International Soup and Sauces       231        141       64%
        Total sales                     $1,729     $1,581        9%

                                                                    Percent
                                                                    Change
                                                                    Excluding
                                                                    Special
    Earnings                                                        Charges(1)
    Contributions:
       North America Soup and
        Away From Home                  $  229     $  258      -11%     -11%
       North America Sauces and
        Beverages                           59         72      -18%     -18%
       Biscuits and Confectionery           34         45      -24%     -16%
       International Soup and Sauces        23         14       64%      64%
         Total operating earnings          345        389      -11%     -10%
         Unallocated corporate
          expenses                         (31)       (26)

    Earnings before interest and
     taxes                                 314        363      -13%     -12%
    Interest, net                          (53)       (52)
    Taxes on earnings                      (90)      (107)
         Net earnings                   $  171     $  204      -16%     -15%


    Net earnings per share - assuming
     dilution                           $  .42     $  .47      -11%     -11%

In the first quarter fiscal 2002 ended October 28, 2001, the company adopted

new accounting standards related to the recognition, measurement and income

statement classification of certain consumer and trade promotional expenses,

such as coupon redemption costs, cooperative advertising programs and in-store

display incentives. In the fourth quarter of last year, the company adopted

new guidance on the classification of shipping and handling costs. As a

result, the following reclassifications were made to the first quarter fiscal

2001 ended October 29, 2000, statement of earnings: Net sales were reduced by

$197; Cost of products sold was increased by $49; and Selling, general and

administrative expenses were reduced by $246.

(1) Percent change is calculated excluding the effects of the Australian

         manufacturing reconfiguration plan announced in fiscal 2001.


                      CAMPBELL SOUP COMPANY CONSOLIDATED
                          BALANCE SHEETS (unaudited)
                                  (millions)

                                               October           October
                                              28, 2001          29, 2000

    Current assets                              $1,576            $1,386

    Plant assets, net                            1,603             1,574

    Intangible assets, net                       2,440             1,678

    Other assets                                   625               596

         Total assets                           $6,244            $5,234


    Current liabilities                         $2,820            $3,083

    Long-term debt                               2,757             1,216

    Nonpension postretirement benefits             333               355

    Other liabilities                              482               452

    Shareowners' equity                           (148)              128

         Total liabilities and
          shareowners' equity                   $6,244            $5,234


    Total debt                                  $4,052            $2,957

    Net debt                                    $4,017            $2,932

SOURCE Campbell Soup Company

CONTACT: Media – Elizabeth Bingham Douglass, +1-856-342-3813; or
Analysts – Leonard F. Griehs, +1-856-342-6428, both of Campbell Soup Company/

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