Campbell Reports First Quarter Earnings Per Share of $.47 Before One-Time Goodwill Impairment Charge; Worldwide Wet Soup Shipments Decline Six Percent

CAMDEN, N.J.–(BUSINESS WIRE)–Nov. 13, 2002–Campbell Soup
Company (NYSE:CPB) today reported diluted earnings per share for the
first quarter ended October 27, 2002 of $.47 before the impact of a
one-time accounting charge, compared to $.42 a year ago. Earnings per
share for the first quarter of fiscal 2003 include the impact of the
adoption of SFAS No. 142, “Goodwill and Other Intangible Assets.”
Earnings per share for the year-ago quarter were $.46 when adjusted
for SFAS No. 142 and for charges related to the Australian
manufacturing reconfiguration.

As a result of adopting SFAS No. 142 at the start of fiscal year
2003, the company eliminated most of its amortization of intangibles
on a prospective basis. In addition, the company recorded a one-time,
non-cash, goodwill impairment charge of $31 million, after tax,
related to Stockpot, which was acquired in fiscal 1999.

For the first quarter, net sales declined 1 percent to $1.7
billion, driven by the following:

  • Base volume and mix were down 3 percent;

  • Price added 1 percent;

  • Promotions subtracted 1 percent;

  • Acquisitions added 1 percent; and

  • Currency added 1 percent.

In the comparable quarter last year, sales increased 9 percent,
driven by a 6 percent increase in volume and mix as Campbell
experienced very strong shipments of U.S. soup and sauce products
following the events of September 11, 2001.

For the first quarter of 2003, wet soup shipments declined 8
percent in the U.S., compared to the strong year-ago quarter in which
shipments rose 6 percent. Outside of the U.S., wet soup shipments
declined 1 percent, resulting in a 6 percent decline worldwide,
compared to a 7 percent increase a year ago.

As reported net earnings, before the cumulative effect of the
accounting change, were $192 million versus $171 million a year
earlier. On a comparable basis, earnings for the quarter were $193
million versus $187 million a year ago, after adjusting the prior year
for amortization eliminated under SFAS No. 142, and both years for the
impact of the Australian reconfiguration.

Douglas R. Conant, Campbell’s President and Chief Executive
Officer, said, “We are making substantial progress in building the
foundation to deliver the long-term results consistent with our
Transformation Plan. For the quarter, we are pleased that we have
exceeded our earnings per share target. As expected, we faced
difficult top line comparisons with the year-ago quarter. Nonetheless,
we are not satisfied with this top line performance, particularly in
U.S. condensed soup. We continue to be encouraged by the performance
of our ready-to-serve soups, including the newly introduced Campbell’s
`Soup at Hand.’ We fully expect our U.S. soup performance to improve
for the remainder of fiscal 2003 as we begin to realize substantially
more of the impact of our marketing and product quality investments
across our soup product lines, particularly condensed soup.”

Conant added, “We are also pleased with the momentum that we are
building in parts of our broader portfolio. Our ongoing investments in
Pepperidge Farm, Arnott’s and V8 have resulted in higher sales in
these businesses during the quarter. As we execute our plans for
fiscal 2003, we remain focused on delivering consumer-driven new
products and packaging innovation for fiscal 2004 and beyond.”

Consistent with earlier guidance, the company continues to expect
earnings per share, before the one-time goodwill impairment charge, of
approximately $1.47 for fiscal 2003, reflecting the adoption of SFAS
No. 142 and the recent acquisitions of Snack Foods Limited in
Australia and Erin Foods in Ireland. This compares to $1.44 per share
in fiscal 2002, which has been restated for SFAS No. 142 and excludes
the costs of the Australian reconfiguration. For the second quarter of
2003, the company expects earnings per share to be in the range of
$.53 to $.55.

A summary of first quarter segment results follows. For
comparative purposes, prior year business results have been adjusted
to reflect the pro forma impact of amortization eliminated under SFAS
No. 142.

North America Soup and Away From Home

Sales of $746 million were down 7 percent, reflecting the 8
percent decline in U.S. soup shipments, which followed 6 percent
growth in the year-ago period. Operating earnings of $205 million were
down 12 percent due to the overall decline in sales and a less
favorable product mix.

Further details include the following:

  • Results were affected by increased aggressive competitive
    activity and lower retailer inventory builds.

  • Condensed soups declined 14 percent.

  • Ready-to-serve soup shipments decreased 1 percent. Campbell’s
    “Soup at Hand,” the new convenient sipping soup designed for
    out-of-home consumption, is generating strong interest in the

  • “Swanson” broth shipments were down 6 percent primarily due to
    the later timing of the Thanksgiving holiday in the U.S.

North America Sauces and Beverages

Sales were down 2 percent to $307 million and operating earnings
increased 20 percent to $77 million. The year-ago period included
introductory product shipments and the related spending behind “Prego”
pasta bake sauces.

During the quarter, “Pace” Mexican sauces and “V8” vegetable
juices delivered strong performances in the marketplace. “V8 Splash”
juice drinks and “Franco-American” canned pasta and gravies showed
continued weakness. “Prego” pasta sauce declined compared to the
stronger year-ago quarter when “Prego” pasta bake sauces were

Biscuits and Confectionery

Sales increased 8 percent to $410 million. Excluding the impact of
currency and the acquisition of Snack Foods Limited, sales grew 2
percent. Operating earnings rose 5 percent to $43 million, excluding
the impact of the Australian manufacturing reconfiguration.

All three businesses – Pepperidge Farm, Arnott’s and Godiva
Chocolatier – reported growth. Further details include the following:

  • Pepperidge Farm delivered strong performances in cookies,
    crackers and bread. The primary drivers of growth were
    “Goldfish” crackers, as well as strong sales of the core
    cookie line, including “Milano” and “Chocolate Chunk” cookies.
    Fresh bakery sales increased, driven by improved distribution
    and strong consumer demand. Pepperidge Farm “Texas Toast”
    frozen bread continued to deliver strong sales results.

  • At Arnott’s, sales were up on the strength of “Kettle” chips,
    “Tim Tam” biscuits and a strong performance in Indonesia.

  • Godiva Chocolatier’s worldwide sales increased, helped by new
    store openings in North America and Japan and a stronger
    performance in Europe. Same store sales in North America
    continued to be weak.

International Soup and Sauces

International Soup and Sauces sales grew 5 percent to $242 million
and operating earnings were down 10 percent to $26 million, compared
to the year-ago quarter. Excluding the impact of currency and the
acquisition of Erin Foods in Ireland, sales declined 3 percent and
operating earnings decreased 18 percent. The earnings decline is
primarily due to severance costs related to the closure of a dry soup
facility in Ireland and one-time costs related to a strategic
procurement initiative in Europe.

Sales declined in Europe, reflecting decreased sales of condensed
soup and “Homepride” sauces in the United Kingdom and wet soup in
Germany, partially offset by sales increases in Belgium and “Liebig”
soups in France.

Soup shipments in the Asia Pacific region declined, reflecting a
warm winter in Australia and increased competitive activity.
Additionally, the closure of the U.S. West Coast ports negatively
impacted soup shipments to Asia.

Conference Call

The company will host a conference call to discuss these results
on November 13, 2002 at 10:00 a.m. Eastern Standard Time. U.S.
participants may access the call at 1-888-282-8354 and non-U.S.
participants at 1-630-395-0045. 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 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 18, 2002 at 1-800-839-9325 or 1-402-998-0850.

Forward-Looking Statements

This release contains “forward-looking statements” which reflect
the company’s current expectations about its future plans and
performance, including statements concerning the impact of marketing
investments and quality improvements on volume and earnings. 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” pasta 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 25,000 employees worldwide. For more information on the
company, visit Campbell’s website on the Internet at

                  STATEMENTS OF EARNINGS (unaudited)
                 (millions, except per share amounts)

                                                THREE MONTHS ENDED

                                                October       October
                                               27, 2002      28, 2001
                                               --------      --------

Net  sales                                      $ 1,705       $ 1,729
                                               --------      -------- 
Costs and expenses
  Cost of products sold                             971           971
  Selling, general and 
   administrative expenses                          404           444
                                               --------      -------- 
Total costs and expenses                          1,375         1,415
                                               --------      --------

Earnings before interest and taxes                  330           314
  Interest, net                                      45            53
                                               --------      --------
Earnings before taxes                               285           261

Taxes on earnings                                    93            90
                                               --------      -------- 
Earnings before cumulative 
effect of accounting change                         192           171
Cumulative effect of accounting change              (31)            -
                                               --------      -------- 
Net earnings                                    $   161       $   171
                                               ========      ========

Per share - basic
  Earnings before cumulative
   effect of accounting change                  $   .47       $   .42
  Cumulative effect of accounting change           (.08)            -
                                               --------      -------- 
  Net earnings                                  $   .39       $   .42
                                               ========      ========

  Dividends                                     $ .1575       $ .1575
                                               ========      ========
Weighted average shares outstanding - basic         410           410
                                               ========      ========
Per share - assuming dilution
  Earnings before cumulative
   effect of accounting change                  $   .47       $   .42
  Cumulative effect of accounting change           (.08)            -
                                               --------      -------- 
  Net earnings                                  $   .39       $   .42
                                               ========      ========
Weighted average shares outstanding
 - assuming dilution                                411           411
                                               ========      ========

At the beginning of fiscal 2003, the company adopted Statement of
Financial Accounting Standards No. 142 "Goodwill and Other Intangible
Assets." In accordance with the standard, the company discontinued the
amortization of goodwill and indefinite-lived intangible assets. Net
earnings for the quarter ended October 28, 2001 would have been $184
or $.45 per diluted share had the provisions of the standard been
adopted at the beginning of the prior year.

In connection with the adoption of this new standard, the company also
recognized a non-cash charge of $31 (net of a $17 tax benefit) as a
cumulative effect of accounting change for the write-down of goodwill
of one business unit.

                 (millions, except per share amounts)

                               THREE MONTHS ENDED
                                October   October Percent
Sales                          27, 2002  28, 2001  Change
-----                          --------  -------- -------
 North America Soup and Away 
  From Home                    $    746  $    806     -7%
 North America Sauces and 
  Beverages                         307       313     -2%
 Biscuits and Confectionery         410       379      8%
 International Soup and Sauces      242       231      5%
                               --------  -------- 
  Total sales                  $  1,705  $  1,729     -1%
                               ========  ======== 
Earnings                                                 Costs (1)
--------                                                 -------------
 North America Soup and Away 
  From Home                    $    205  $    232    -12%       -12%
 North America Sauces and 
  Beverages                          77        64     20%        20%
 Biscuits and Confectionery          42        37     14%         5%
 International Soup and Sauces       26        29    -10%       -10%
                               --------  --------
  Total operating earnings          350       362     -3%        -4%
  Unallocated corporate 
   expenses                         (20)      (31)
                               --------  --------
Earnings before interest and 
 taxes                              330       331      0%        -1%
Interest, net                       (45)      (53)
Taxes on earnings                   (93)      (94)
                               --------  --------
 Earnings before cumulative
  effect of accounting change       192       184      4%         3%
 Cumulative effect of 
  accounting change                 (31)        -
                               --------  --------
 Net earnings                  $    161  $    184    -13%       -13%
                               ========  ========
Net earnings per share before 
 cumulative effect of 
 accounting change - assuming 
 dilution                      $    .47  $    .45      4%         2%
                               ========  ========

Results for the period ended October 28, 2001 have been restated to
reflect the pro forma impact of SFAS No. 142. Amortization expense of
$17 ($13 after tax or $.03 per share) has been eliminated from the
prior period results.

Earnings contributions from Biscuits and Confectionery include the
effect of costs associated with the Australian manufacturing
reconfiguration plan. In the first quarter of fiscal 2003, costs were
both $1 pre- and after tax. In the first quarter of fiscal 2002, costs
were $4 pre-tax ($3 after tax).

(1) Percent change is calculated excluding the effects of the
    Australian manufacturing reconfiguration plan.

                      BALANCE SHEETS (unaudited)
                                                October       October
                                               27, 2002      28, 2001
                                               --------      --------
Current assets                                  $ 1,577       $ 1,558
Plant assets, net                                 1,736         1,603
Intangible assets, net                            2,622         2,440
Other assets                                        315           643
                                               --------      --------
     Total assets                               $ 6,250       $ 6,244
                                               ========      ========
Current liabilities                             $ 3,702       $ 2,820
Long-term debt                                    1,860         2,757
Nonpension postretirement
 benefits                                           317           333
Other liabilities                                   368           482
Shareowners' equity                                   3          (148)
                                               --------      --------
     Total liabilities and 
      shareowners' equity                       $ 6,250       $ 6,244
                                               ========      ========
Total debt                                      $ 3,907       $ 4,052
                                               ========      ========
Net debt                                        $ 3,866       $ 4,017
                                               ========      ========

Certain reclassifications were made to prior year financial

–30–CRB/ph* NR/ph

CONTACT: Campbell Soup Company
Michelle M. Davidson, 856/968-4390
Leonard F. Griehs, 856/342-6428