caret-down

Campbell Reports First Quarter Results

Strong U.S. Soup Performance Drives 8 Percent Sales Increase; Earnings Per Share from Continuing Operations of $.66 Compared to $.69 in the Prior Period on an as Reported Basis; EPS From Continuing Operations of $.66 Increased 16 Percent Over Prior Year Adjusted Pro Forma Base

CAMDEN, N.J., Nov 20, 2006 (BUSINESS WIRE) — Campbell Soup Company (NYSE:CPB) today reported an 8 percent sales
increase to $2,153 million in the quarter ended October 29, 2006, and
earnings from continuing operations of $269 million, compared to $286
million in the prior year. Earnings per share from continuing
operations for the current quarter were $.66, compared to $.69 as
reported in the year-ago period. Both earnings and earnings per share
in the year-ago period included several items that impact the
comparability of results from continuing operations.

After factoring in the items that impact comparability into the
fiscal 2006 reported results, earnings from continuing operations
would have been $226 million in the prior-year period compared to $269
million in the current quarter. Adjusted pro forma earnings per share
would have been $.57 in the prior-year period compared to $.66 in the
current quarter, an increase of 16 percent.

The items recorded in the first quarter of fiscal 2006 that impact
the comparability of earnings from continuing operations are:

    -- The company recorded a non-cash tax benefit of $47 million
       resulting from the favorable resolution of a U.S. tax
       contingency related to transactions in government securities in
       a prior period. In addition, Campbell reduced interest expense
       and accrued interest payable by $21 million, and adjusted
       deferred tax expense by $8 million ($13 million after tax). The
       aggregate non-cash impact of the settlement on earnings was $60
       million, or $.14 per share.

    -- The company recorded an incremental tax expense of $8 million,
       or $.02 per share, associated with the repatriation of non-U.S.
       earnings under the American Jobs Creation Act.

    -- The company changed the method of accounting for certain U.S.
       inventories from the LIFO method to the average cost method.
       The impact of the change resulted in a $13 million pre-tax
       gain, $8 million after tax, or $.02 per share.

One additional adjustment to earnings per share from continuing
operations is required for comparability.

In August 2006, upon completing the sale of its U.K. and Ireland
businesses for approximately $870 million, Campbell announced a
special share repurchase program for $620 million of the proceeds. To
provide comparability of results, the company’s adjusted 2006 results
reflect the pro forma impact of utilizing $620 million of the proceeds
from the sale to repurchase 17 million shares, an incremental impact
of $.02 per share.

This results in a 2006 adjusted pro forma base of $.57 compared to
$.66 for the first quarter of fiscal 2007.

A detailed reconciliation of the adjusted fiscal 2007 and 2006
financial information to the reported financial information is
attached to this release.

Earnings from discontinued operations in the quarter were $22
million compared to $16 million in the prior year. Earnings for the
current year’s first quarter reflected a $36 million gain, $22 million
after tax, or $.05 per share, from the sale of the U.K. and Ireland
businesses, while the prior year’s earnings of $.04 per share
represented operating performance.

For the first quarter, sales were $2,153 million, an increase of 8
percent. Sales for the quarter reflect the following factors:

    -- Volume and mix added 4 percent

    -- Price and sales allowances added 2 percent

    -- Decreased promotional spending added 1 percent

    -- Currency added 1 percent

Douglas R. Conant, Campbell’s President and Chief Executive
Officer, said, “We achieved strong first quarter results across our
key strategic growth platforms of simple meals and baked snacks.

“Within simple meals, our U.S. soup business delivered strong
growth across all formats–condensed, ready-to-serve, and broth. Given
our strategic emphasis on wellness, we are encouraged by the
introduction of our new lower sodium soups, featuring natural sea
salt. Although this initiative is in its early stages, consumer trial
has been solid and initial shipments have exceeded our expectations.
We will have a better sense of the incremental impact of this effort
as the year progresses.

“Within baked snacks, we achieved strong growth in our Pepperidge
Farm bakery and cookies and crackers businesses, as well as solid
gains in Arnott’s biscuit business in Australia. Additionally, our
beverage business continued its strong growth trend, driven by the
innovative ‘V8 V-Fusion’ juice beverages and ‘V8’ vegetable juices.

“Overall, we are pleased with this very good start to the year.”

The company confirmed its fiscal 2007 guidance for earnings per
share from continuing operations to increase between 5 and 7 percent
from the adjusted pro forma fiscal year 2006 base of $1.73.

At the end of the quarter, total debt was $2,863 million compared
to $2,976 million a year ago. Net debt, or total debt minus cash and
cash equivalents, was $2,633 million compared to $2,931 million a year
ago, a reduction of $298 million.

During the first quarter, Campbell completed its previously
announced program to utilize $620 million of the proceeds from the
sale of its U.K. and Ireland businesses to repurchase shares. This was
accomplished through two accelerated share repurchase transactions for
$600 million and $20 million of open market transactions. This is in
addition to the three-year $600 million share repurchase plan
announced in November 2005 and Campbell’s ongoing practice of buying
back shares sufficient to offset shares issued under incentive
compensation plans. In total, the company purchased 19.9 million
shares for $751 million during the first quarter.

Summary of Fiscal 2007 First Quarter Results by Segment

U.S. Soup, Sauces and Beverages

Sales for U.S. Soup, Sauces and Beverages were $1,052 million, up
8 percent from $970 million a year ago. The change in sales reflects
the following factors:

    -- Volume and mix added 4 percent

    -- Price and sales allowances added 3 percent

    -- Decreased promotional spending added 1 percent

Operating earnings were $322 million compared with $288 million in
the prior-year period. Earnings in the prior-year period included an
$8 million gain from a change in the method of accounting for
inventory. Operating earnings were driven by higher selling prices,
increased volume, and productivity gains, partially offset by cost
inflation.

Total soup sales for the quarter increased 10 percent, driven by
the following:

    -- Sales of "Campbell's" condensed soups increased 7 percent with
       gains in both eating and cooking soups. Condensed eating soups
       delivered double-digit growth due to increased advertising and
       effective back-to-school merchandising. Solid consumer trial of
       new lower sodium soups also had a positive impact on sales.
       Sales increases in condensed cooking soups were driven by new
       casserole focused advertising. Sales of condensed soups
       continued to benefit from the gravity-feed shelving systems,
       now installed in more than 16,000 grocery stores.

    -- Sales of ready-to-serve soups increased 15 percent for the
       quarter driven by significant volume increases. Highlights
       for ready-to-serve soup sales performance are as follows:

        -- "Campbell's Select" and "Campbell's Chunky" soups had
           strong sales growth in both cans and microwavable bowls
           driven by increased advertising and promotions.

        -- Ready-to-serve soups also benefited from continued strong
           demand for "Campbell's" classic soup varieties in
           microwavable bowls. New varieties of vegetable beef and
           creamy tomato were added in the quarter.

        -- Overall, the company's convenience line of soups in
           microwavable bowls and cups achieved very strong
           double-digit sales growth.

        -- Both "Campbell's Select" and "Campbell's Chunky" soups
           sales benefited from strong consumer trial of seven new
           "Campbell's Healthy Request" lower sodium varieties.

        -- As expected, sales of "Campbell's Select Gold Label" soups
           declined versus the year-ago period, which benefited from
           higher levels of shipments during its introduction.
           However, customer and consumer response continued to be
           favorable.

    -- Sales of "Swanson" broth increased 8 percent for the quarter
       due to continued growth in aseptically-packaged broth.

Highlights of this segment’s other businesses include:

    -- Beverage sales grew at a double-digit rate, driven by the
       introduction of "V8 V-Fusion," a 100% juice beverage that
       provides a full serving of vegetables and fruit, as well as the
       strong performance of "V8" vegetable juices. Launched in the
       second quarter of fiscal 2006, "V8 V-Fusion" continues to be
       favorably received by the trade and consumers.

    -- "Prego" pasta sauce sales declined for the quarter, due to the
       timing of promotional activity, while sales of "Pace" Mexican
       sauces posted solid gains.

Baking and Snacking

Sales for Baking and Snacking were $484 million, up 6 percent from
$458 million a year ago. A breakdown of the change in sales follows:

    -- Volume and mix added 4 percent

    -- Price and sales allowances added 2 percent

Operating earnings were $68 million compared with $50 million in
the prior-year period. Earnings in the prior-year period included a $5
million gain from a change in the method of accounting for inventory.
Operating earnings were driven by significant gains at Pepperidge
Farm, primarily due to higher volumes and lower marketing costs
compared to the prior year’s quarter which included marketing expenses
related to the launch of “Whims” poppable cookie snacks. “Whims” was
subsequently discontinued. Arnott’s also delivered significant
earnings growth from favorable product mix, higher selling prices, and
productivity improvements.

Further details of sales results include the following:

    -- Pepperidge Farm achieved double-digit sales growth with gains
       in each of its businesses--bakery, cookies and crackers, and
       frozen.

        -- In the cookies and crackers business, double-digit sales
           gains were driven by significant growth of "Goldfish"
           crackers, due to effective promotional activity and new
           100-calorie packs. Expanded distribution of single-serve
           products in convenience and drug store channels, along with
           gains in "Milano" cookies, also contributed to growth.

        -- Pepperidge Farm's bakery business also delivered strong
           sales gains behind continued growth of fresh breads, driven
           by the continued popularity of whole grain varieties.

    -- At Arnott's, sales decreased slightly as solid gains in the
       biscuit business were offset by declines in the snack foods
       business and the unfavorable impact of currency.

International Soup and Sauces

Sales for International Soup and Sauces were $346 million, up 11
percent from $312 million a year ago. The change in sales reflects the
following factors:

    -- Volume and mix added 6 percent

    -- Price and sales allowances added 1 percent

    -- Currency added 4 percent

Operating earnings were $48 million compared to $35 million in the
year-ago period. Operating earnings were driven by double-digit
increases in the Canadian and European businesses and by the favorable
impact of currency.

Further details of sales results include the following:

    -- The Canadian business delivered strong sales results driven by
       currency and solid performance of its soup business.

    -- The company's European business is focused in four geographies:
       France, Germany, Belgium, and the Nordic region. Sales in
       Europe increased during the first quarter across all markets
       due to the favorable impact of currency and volume gains in
       each of these businesses.

Other

The balance of the portfolio includes the Godiva Chocolatier
business worldwide and the Away From Home business in the U.S. and
Canada.

Segment sales were $271 million, up 3 percent from $262 million a
year ago. A breakdown of the change in sales follows:

    -- Price and sales allowances added 4 percent

    -- Increased promotional spending subtracted 1 percent

Operating earnings were $26 million, flat with the prior-year
period.

Further details include the following:

    -- Godiva Chocolatier sales increased in North America and
       international markets. Godiva is currently relaunching its Gold
       Ballotin assortment with new contemporary packaging, new
       chocolates, and reformulated classic varieties.

    -- Away From Home sales increased slightly, due to gains in frozen
       soup.

Non-GAAP Financial Information

A reconciliation of the adjusted fiscal 2007 and 2006 financial
information to the reported financial information is attached to this
release and can also be found on the company’s website at
www.campbellsoupcompany.com in the “Investor Center” section.

Conference Call

The company will host a conference call to discuss these results
on November 20, 2006 at 10:00 a.m. Eastern Standard Time. U.S.
participants may access the call at 1-866-802-4323 and non-U.S.
participants at 1-703-639-1320. Participants should call at least five
minutes prior to the starting time. The passcode is “Campbell Soup”
and the conference leader is Len Griehs. The call will also be
broadcast live over the Internet at www.campbellsoupcompany.com and
can be accessed by clicking on the “Shareholder Event / Webcast”
banner. A recording of the call will be available approximately two
hours after it is completed through midnight November 24, 2006 at
1-888-266-2081 or 1-703-925-2533. The access code is 993507.

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 strategies, pricing, share repurchase, new product
introductions and innovation, cost-saving initiatives, quality
improvements, and portfolio strategies, including divestitures, on
sales, earnings, and margins. 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.

Reporting Segments

Campbell Soup Company earnings results are reported for the
following segments:

U.S. Soup, Sauces and Beverages includes the following retail
businesses: “Campbell’s” brand condensed and ready-to-serve soups,
“Swanson” broth and canned poultry businesses, “Prego” pasta sauce,
“Pace” Mexican sauce, “Campbell’s Chunky” chili, “Campbell’s” canned
pasta, gravies and beans, “Campbell’s Supper Bakes” meal kits, “V8”
vegetable juices, “V8 Splash” juice beverages, and “Campbell’s” tomato
juice.

Baking and Snacking includes the following businesses: “Pepperidge
Farm” cookies, crackers, breads and frozen products in U.S. retail,
“Arnott’s” biscuits in Australia and Asia Pacific, and “Arnott’s”
salty snacks in Australia.

International Soup and Sauces includes the soup, sauce and
beverage businesses outside of the United States, including Canada,
Europe, Mexico, Latin America, and the Asia Pacific region.

Other includes the Godiva Chocolatier business worldwide and the
Away From Home business in the U.S. and Canada.

About Campbell Soup Company

Campbell Soup Company is a global manufacturer and marketer of
high quality simple meals, including soups, baked snacks,
vegetable-based beverages, and premium chocolate products. Founded in
1869, the company has a portfolio of market-leading brands, including
“Campbell’s,” “Pepperidge Farm,” “Arnott’s,” “V8,” and “Godiva.” For
more information on the company, visit Campbell’s website at
www.campbellsoupcompany.com.

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


                                                THREE MONTHS ENDED
                                             -------------------------
                                             October 29,  October 30,
                                                 2006         2005
                                             ------------ ------------

Net sales                                     $    2,153   $    2,002
                                             ------------ ------------

Costs and expenses
    Cost of products sold                          1,236        1,156
    Marketing and selling expenses                   316          318
    Administrative expenses                          135          125
    Research and development expenses                 26           24
    Other expenses / (income)                          2           (2)
                                             ------------ ------------
Total costs and expenses                           1,715        1,621
                                             ------------ ------------

Earnings before interest and taxes                   438          381
Interest, net                                         41           26
                                             ------------ ------------
Earnings before taxes                                397          355

Taxes on earnings                                    128           69
                                             ------------ ------------

Earnings from continuing operations                  269          286
Earnings from discontinued operations                 22           16
                                             ------------ ------------
Net earnings                                  $      291   $      302
                                             ============ ============

Per share - basic
   Earnings from continuing operations        $      .68   $      .70
   Earnings from discontinued operations             .06          .04
                                             ------------ ------------
   Net earnings                               $      .74   $      .74
                                             ============ ============

   Dividends                                  $      .20   $      .18
                                             ============ ============

Weighted average shares outstanding - basic          395          409
                                             ============ ============


Per share - assuming dilution
   Earnings from continuing operations        $      .66   $      .69
   Earnings from discontinued operations             .05          .04
                                             ------------ ------------
   Net earnings                               $      .72   $      .73
                                             ============ ============

Weighted average shares outstanding
  - assuming dilution                                405          414
                                             ============ ============

In fiscal 2006, the company changed the method of accounting for
certain U.S. inventories from the LIFO method to the average cost
method. The impact of the change was reflected as a one-time non-cash
pre-tax benefit of $13 ($8 after tax or $.02 per share).

In fiscal 2006, the company recorded a non-cash tax benefit of $47
resulting from the favorable resolution of a U.S. tax contingency
related to a prior period. In addition, the company reduced interest
expense and accrued interest payable by $21 and adjusted deferred tax
expense by $8 ($13 after tax). The aggregate non-cash impact of the
settlement on earnings from continuing operations was $60, or $.14 per
share.

In fiscal 2006, incremental tax expense of $8 (or $.02 per share)
was recorded related to earnings repatriated from non-U.S.
subsidiaries under the provision of the American Jobs Creation Act.

The sum of the individual per share amounts does not equal net
earnings due to rounding.

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


                                         THREE MONTHS ENDED
                                       -----------------------
                                       October 29, October 30, Percent
Sales                                     2006        2005     Change
-------------------------------------- ----------- ----------- -------
Contributions:
   U.S. Soup, Sauces and Beverages     $    1,052  $      970       8%
   Baking and Snacking                        484         458       6%
   International Soup and Sauces              346         312      11%
   Other                                      271         262       3%
                                       ----------- -----------
Total sales                            $    2,153  $    2,002       8%
                                       =========== ===========



Earnings
--------------------------------------
Contributions:
   U.S. Soup, Sauces and Beverages     $      322  $      288      12%
   Baking and Snacking                         68          50      36%
   International Soup and Sauces               48          35      37%
   Other                                       26          26       0%
                                       ----------- -----------
Total operating earnings                      464         399      16%
Unallocated corporate expenses                (26)        (18)
                                       ----------- -----------

Earnings before interest and taxes            438         381      15%
Interest, net                                 (41)        (26)
Taxes on earnings                            (128)        (69)
                                       ----------- -----------

Earnings from continuing operations           269         286      -6%
Earnings from discontinued operations          22          16
                                       ----------- -----------
Net earnings                           $      291  $      302      -4%
                                       =========== ===========

Per share - assuming dilution
   Earnings from continuing operations $      .66  $      .69      -4%
   Earnings from discontinued
    operations                                .05         .04
                                       ----------- -----------
Net earnings                           $      .72  $      .73
                                       =========== ===========

In fiscal 2006, the company changed the method of accounting for
certain U.S. inventories from the LIFO method to the average cost
method. The impact of the change was reflected as a one-time non-cash
pre-tax benefit of $13 ($8 after tax or $.02 per share). The pre-tax
benefit is reflected as follows: U.S. Soup, Sauces and Beverages – $8
and Baking and Snacking – $5.

In fiscal 2006, the company recorded a non-cash tax benefit of $47
resulting from the favorable resolution of a U.S. tax contingency
related to a prior period. In addition, the company reduced interest
expense and accrued interest payable by $21 and adjusted deferred tax
expense by $8 ($13 after tax). The aggregate non-cash impact of the
settlement on earnings from continuing operations was $60, or $.14 per
share.

In fiscal 2006, incremental tax expense of $8 (or $.02 per share)
was recorded related to earnings repatriated from non-U.S.
subsidiaries under the provision of the American Jobs Creation Act.

The sum of the individual per share amounts does not equal net
earnings due to rounding.

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


                                               October 29, October 30,
                                                  2006        2005
                                               ----------- -----------

Current assets                                 $    2,092  $    1,881

Plant assets, net                                   1,939       1,957

Intangible assets, net                              2,362       3,006

Other assets                                          631         320

                                               ----------- -----------
     Total assets                              $    7,024  $    7,164
                                               =========== ===========


Current liabilities                            $    2,637  $    2,438

Long-term debt                                      2,116       2,225

Nonpension postretirement benefits                    275         278

Other liabilities                                     728         710

Shareowners' equity                                 1,268       1,513

                                               ----------- -----------
     Total liabilities and shareowners' equity $    7,024  $    7,164
                                               =========== ===========


Total debt                                     $    2,863  $    2,976
                                               =========== ===========

Cash and cash equivalents                      $      230  $       45
                                               =========== ===========

Net debt                                       $    2,633  $    2,931
                                               =========== ===========

Certain reclassifications were made to prior year financial
statements.

        Reconciliation of GAAP and Non-GAAP Financial Measures
                 First Quarter Ended October 29, 2006

Campbell Soup Company uses certain non-GAAP financial measures as
defined by the Securities and Exchange Commission in certain
communications. These non-GAAP financial measures are measures of
performance not defined by accounting principles generally accepted in
the United States and should be considered in addition to, not in lieu
of, GAAP reported measures.

The company believes that net debt is a non-GAAP measure that
provides additional meaningful comparisons between current results and
prior period results and a useful perspective on the financial
condition of the business. Interest income earned on cash and cash
equivalents partially offsets interest expense on debt. Cash and cash
equivalents are available to repay outstanding debt upon maturity.

The table below summarizes information on total debt and cash and
cash equivalents:

             (millions)              October 29, 2006 October 30, 2005
                                     ---------------- ----------------

Current notes payable                $           747  $           751
Long-term debt                                 2,116            2,225
                                     ---------------- ----------------
     Total debt                      $         2,863  $         2,976

Less: Cash and cash equivalents                 (230)             (45)
                                     ---------------- ----------------
     Net Debt                        $         2,633  $         2,931
                                     ================ ================

The company believes that financial information excluding certain
changes in accounting methods and other transactions not considered to
be part of the ongoing business improves the comparability of
year-to-year results. Consequently, the company believes that
investors may be able to better understand its earnings results if
these transactions are excluded from the results.

In fiscal 2006, the following changes in accounting methods and
tax matters impacted earnings from continuing operations:

(1) The company changed the method of determining the cost of certain
     U.S. inventories from the LIFO method to the average cost method.
     As a result, the company recorded a $13 million pre-tax, $8
     million after tax, benefit from the change in accounting method.

(2) The company recorded a non-cash tax benefit of $47 million
     resulting from the favorable resolution of a U.S. tax contingency
     related to a prior period. In addition, the company reduced
     interest expense and accrued interest payable by $21 million and
     adjusted deferred tax expense by $8 million ($13 million after
     tax). The aggregate non-cash impact of the settlement on earnings
     from continuing operations was $60 million, or $.14 per share.

(3) The company recorded incremental tax expense of $8 million
     associated with the repatriation of earnings under the American
     Jobs Creation Act ("AJCA").

The table below reconciles financial information, presented in
accordance with GAAP, to financial information excluding the impact of
changes in accounting methods and certain tax matters:

  (millions, except per share
            amounts)                    First Quarter
                                 ---------------------------
                                 Oct. 29, 2006 Oct. 30, 2005 % Change
                                 --------------------------- ---------

Earnings before interest and
 taxes, as reported              $        438  $        381
Deduct: Impact of change in
 inventory accounting method (1)            -           (13)
                                 ------------- -------------
Adjusted Earnings before
 interest and taxes              $        438  $        368        19%
                                 ------------- -------------

Interest, net, as reported       $         41  $         26
Add: Reduction in interest
 expense related to the
 favorable resolution of tax
 contingency (2)                            -            21
                                 ------------- -------------
Adjusted Interest, net           $         41  $         47
                                 ------------- -------------

Adjusted Earnings before taxes   $        397  $        321        24%
                                 ------------- -------------

Taxes on earnings, as reported   $        128  $         69
Deduct: Tax impact of change in
 inventory accounting method (1)            -            (5)
Add: Adjustment to tax expense
 related to the favorable
 resolution of tax contingency
 (2)                                        -            39
Deduct: Incremental tax expense
 associated with the
 repatriation of earnings under
 the AJCA (3)                               -            (8)
                                 ------------- -------------
Adjusted Taxes on earnings       $        128  $         95
                                 ------------- -------------
Adjusted effective income tax
 rate                                    32.2%         29.6%

Earnings from continuing
 operations, as reported         $        269  $        286
Deduct: Impact of change in
 inventory accounting method (1)            -            (8)
Deduct: Net adjustment to taxes
 and interest expense related to
 the favorable resolution of tax
 contingency (2)                            -           (60)
Add: Incremental tax expense
 associated with the
 repatriation of earnings under
 the AJCA (3)                               -             8
                                 ------------- -------------
Adjusted Earnings from
 continuing operations           $        269  $        226        19%
                                 ============= =============

Diluted earnings per share -
 continuing operations, as
 reported                        $       0.66  $       0.69
Deduct: Impact of change in
 inventory accounting method (1)            -         (0.02)
Deduct: Net adjustment to taxes
 and interest expense related to
 the favorable resolution of tax
 contingency (2)                            -         (0.14)
Add: Incremental tax expense
 associated with the
 repatriation of earnings under
 the AJCA (3)                               -          0.02
                                 ------------- -------------
Adjusted Diluted earnings per
 share - continuing operations   $       0.66  $       0.55        20%
                                 ============= =============

Pro Forma Impact of Use of Proceeds from Sale of Businesses
-----------------------------------------------------------

In August 2006, the company completed the sale of its businesses
in the United Kingdom and Ireland for GBP 460 million or approximately
$870 million and announced that approximately $620 million of the net
proceeds would be used to repurchase shares. To improve the
comparability of results, the following table illustrates the pro
forma impact had 17 million shares been repurchased and eliminated
from shares outstanding in the prior year:

   (millions, except per share amounts)      First Quarter
                                           -----------------
                                           Oct. 29, Oct. 30,
                                             2006     2005   % Change
                                           ----------------- ---------

Adjusted Earnings from continuing
 operations                                $   269  $   226        19%
                                           ======== ========

Adjusted Diluted earnings per share -
 continuing operations                     $  0.66  $  0.55        20%
                                           ======== ========

Weighted average shares outstanding -
 assuming dilution, as reported                405      414
Deduct: Pro forma impact of shares
 repurchased                                     -      (17)
                                           -------- --------
Pro forma weighted average shares
 outstanding - assuming dilution               405      397
                                           ======== ========


Pro forma Diluted earnings per share -
 continuing operations                     $  0.66  $  0.57        16%
                                           ======== ========

SOURCE: Campbell Soup Company

Campbell Soup Company
Anthony J. Sanzio (Media)
(856) 968-4390
Leonard F. Griehs (Analysts)
(856) 342-6428