First-Quarter Net Earnings per Share Decreased 6 Percent to $0.82.

CAMDEN, N.J., Nov 23, 2010 (BUSINESS WIRE) —

Campbell Soup Company (NYSE: CPB) today reported its results for
the first quarter of fiscal 2011.

First-Quarter Summary

• Sales Decreased 1 Percent to $2.172 Billion
• Sales Were Negatively Impacted by Increased Promotional Spending
• U.S. Soup Sales Decreased 5 Percent
• U.S. Beverage Sales Increased 10 Percent

Net earnings for the quarter ended Oct. 31, 2010, were $279 million, or
$0.82 per share, compared with $304 million, or $0.87 per share, in the
prior year.

Douglas R. Conant, Campbell’s President and CEO, said, “In a challenging
consumer spending environment, we delivered mixed results in our U.S.
Soup business this quarter. Condensed cooking soups performed well, with
sales up 7 percent, as our marketing efforts continued to resonate with
consumers seeking convenient simple meals for their families. The key
negative factor impacting our first-quarter results in U.S. soup was the
performance of our ready-to-serve and condensed eating soups, where
increased promotional spending did not produce the planned volume gains.
This was due in part to even steeper promotions by competitors, which we
chose not to match.

“We intend to remain competitive in U.S. Soup through the height of the
soup season, and it’s likely that margin pressures will persist through
the second quarter. In the second half, we plan to place greater focus
on advertising and brand-building initiatives in our marketing efforts,
as we adjust our promotional activity to achieve improved price
realization.”

Conant concluded, “In recent years, we’ve shown success in our healthy
beverages and baked snacks businesses, which represent a significant
portion of our portfolio. This year, our beverages business started off
with another quarter of double-digit growth, driven by our continued
innovation of ‘V8 V-Fusion’ beverages and effective advertising. Within
baked snacks, our Pepperidge Farm business delivered solid performance,
driven by innovations such as ‘Deli Flats’ rolls, ‘Baked Naturals’
crackers and the expansion of the ‘Goldfish’ brand. In both healthy
beverages and baked snacks, our performance was driven by strong
innovation, compelling advertising and effective promotional activities.”

Fiscal 2011 Guidance

As previously announced, including an estimated 1-point favorable impact
from currency, Campbell expects net sales growth of 1 to 3 percent, EBIT
comparable to the adjusted EBIT in the prior year and EPS growth of 2 to
4 percent from the fiscal 2010 adjusted base of $2.47.

A detailed reconciliation of the fiscal 2010 adjusted financial
information to the 2010 reported financial information is included at
the end of this news release.

First-Quarter Results

For the first quarter, sales decreased 1 percent to $2.172 billion. The
change in sales for the quarter reflected the following factors:

• Volume and mix added 1 percent
• Increased promotional spending subtracted 3 percent
• Currency added 1 percent

First-Quarter Financial Details

• Gross margin was 41.2 percent, compared with 41.9 percent a year ago.
  The decrease in gross margin percentage was primarily due to increased
  promotional spending and cost inflation, partially offset by
  productivity improvements and favorable mix.
• Marketing and selling expenses decreased 2 percent to $277 million
  primarily due to lower selling expenses.
• Administrative expenses increased $7 million to $140 million,
  primarily due to increased pension and long-term incentive
  compensation costs and currency.
• EBIT was $444 million compared with $478 million in the prior-year
  quarter. EBIT decreased 7 percent primarily due to increased
  promotional spending and cost inflation, partially offset by
  productivity improvements and favorable mix.
• Cash flow from operations was a use of $29 million compared to a use
  of $36 million in the year-ago period. The benefit of lower pension
  contributions was mostly offset by higher working capital requirements
  and lower earnings.
• Campbell repurchased 4 million shares for $156 million under its
  strategic share repurchase program announced in June 2008 and the
  company’s ongoing practice of buying back shares sufficient to offset
  those issued under incentive compensation plans.

Summary of Fiscal 2011 First-Quarter Results by Segment

U.S. Soup, Sauces and Beverages

Sales for U.S. Soup, Sauces and Beverages were $1.103 billion for the
first quarter, a decrease of 3 percent compared with a year ago. The
change in sales was due to increasedpromotional spending.

For the quarter, U.S. Soup sales decreased 5 percent.

• Sales of “Campbell’s” condensed soups decreased 1 percent. Sales of
  condensed cooking varieties rose driven by increased advertising and
  promotional activity. Sales of eating varieties declined as the
  business was negatively impacted by promotional discounting in the
  ready-to-serve segment.
• Sales of ready-to-serve soups declined 13 percent. Increased
  promotional spending did not deliver planned volume gains.
• “Healthy Request” varieties enjoyed continued success across both
  condensed and ready-to-serve soups, posting a 9 percent sales gain.
• Broth sales declined 2 percent.

Beverage sales increased 10 percent driven by double-digit volume gains.

• “V8 V-Fusion” juice sales grew double digits due to increased
  marketing support and new item launches, including “V8 V-Fusion + Tea”
  varieties and Cranberry-Blackberry Light.
• “V8” vegetable juice sales grew due to increased advertising, and
  sales of “V8 Splash” juice drinks rose double digits.

Sales of “Prego” pasta sauce declined, as higher promotional spending
was partly offset by volume gains. “Pace” Mexican sauce declined due to
increased competitive activity.

Operating earnings were $295 million, compared with $331 million in the
prior-year period. The decrease in operating earnings was primarily due
toincreased promotional spending and cost inflation, partly
offset by productivity improvements.

Baking and Snacking

Sales for Baking and Snacking were $544 million in the first quarter, an
increase of 3 percent from a year ago. The change in sales reflected the
following factors:

• Volume and mix added 1 percent
• Price and sales allowances added 1 percent
• Increased promotional spending subtracted 2 percent
• Currency added 3 percent

Further details of sales results included the following:

• Sales of Pepperidge Farm were comparable to a year ago, as volume
  gains were offset by increased promotional spending.
  • Sales from the bakery business declined, reflecting lower sales of
    stuffing and artisan bread, partly offset by gains associated with
    the successful expansion of the “Deli Flats”line.
  • In the cookies and crackers business, sales increased driven by
    solid gains in “Goldfish” snack crackers and “Baked Naturals”
    crackers, while sales of cookies were comparable to a year ago.
• In Australia, sales increased due to currency. Excluding currency,
  Arnott’s sales were comparable to a year ago, as continued strong
  gains in “Shapes” and “Vita-Weat” savory crackers were offset by
  declines in chocolate and other sweet biscuit products.

For the quarter, operating earnings were $100 million, comparable to the
prior-year period as the favorable impact of currency and higher
earnings in Pepperidge Farm were offset by lower earnings in Australia.

International Soup, Sauces and Beverages

Sales for International Soup, Sauces and Beverages were $372 million for
the first quarter, a decrease of 1 percent compared with a year ago. The
change in sales reflected the following factors:

• Volume and mix added 3 percent
• Increased promotional spending subtracted 3 percent
• Currency subtracted 1 percent

Excluding the impact of currency, solid gains in Europe and the Asia
Pacific region were primarily offset by declines in Latin America.

• In Europe, sales declined due to the unfavorable impact of currency,
  partly offset by strong gains in Germany.
• In Asia Pacific, sales increased due to currency and volume-driven
  gains in Australia and Japan, partly offset by a decline in Hong Kong.
• In Canada, sales increased due to the impact of currency and solid
  volume gains, partially offset by increased promotional spending.

Operating earnings were $51 million, compared with $44 million in the
year-ago period. The increase in operating earnings was driven by growth
in Europe.

North America Foodservice

Sales were $153 million for the first quarter, a decrease of 4 percent
compared with a year ago. A breakdown of the change in sales follows:

• Volume and mix subtracted 4 percent
• Increased promotional spending subtracted 1 percent
• Currency added 1 percent

Reflecting the lower sales, operating earnings declined to $23 million
compared with $26 million in the prior-year quarter.

Unallocated Corporate Expenses

Unallocated corporate expenses increased to $25 million in the current
quarter from $23 million a year ago.

Non-GAAP Financial Information

A detailed reconciliation of the fiscal 2010 adjusted financial
information to the 2010 reported financial information is included at
the end of this news release.

Conference Call

Campbell will host a conference call to discuss these results on Nov.
23, 2010, at 10:00 a.m. Eastern Standard Time. U.S. participants may
access the call at 1-866-847-7861 and non-U.S. participants at
1-703-639-1428. Participants should call at least ten minutes prior to
the starting time. The passcode is “Campbell Soup” and the conference
leader is Jennifer Driscoll. The call will also be broadcast live over
the Internet at investor.campbellsoupcompany.com
and can be accessed by clicking on the “News & Events” button. A
recording of the call will be available approximately two hours after it
is completed through midnight Dec. 7, 2010, at 1-888-266-2081 or
1-703-925-2533. The access code is 1485158.

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” condensed and ready-to-serve soups, “Swanson”
broth, stock and canned poultry businesses, “Prego” pasta sauce, “Pace”
Mexican sauce, “Campbell’s” canned pasta, gravies and beans, “V8”
vegetable juices, “V8 V-Fusion” juices,“V8 V-Fusion + Tea”
beverages, “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 and “Arnott’s” biscuits in Australia and Asia Pacific.

International Soup, Sauces and Beverages includes the soup, sauce
and beverage businesses outside of the United States, including Europe,
Mexico, Latin America, the Asia Pacific region,as well asthe
emerging markets of Russia and China,and the retail business in
Canada.

North America Foodservice includes the Away FromHome
business in the U.S. and Canada.

About Campbell Soup Company

Campbell Soup Company is a global manufacturer and marketer of
high-quality foods and simple meals, including soup and sauces, 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.” Through its corporate social responsibility
program, the company strives to make a positive impact in the workplace,
in the marketplace and in the communities in which it operates. Campbell
is a member of the Standard & Poor’s 500 and the Dow Jones
Sustainability Indexes. For more information, visit www.campbellsoup.com.

Forward-Looking Statements

This release contains “forward-looking statements” that reflect the
company’s current expectations about the impact of its future plans and
performance on sales, earnings, 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. The factors
that could cause the company’s actual results to vary materially from
those anticipated or expressed in any forward-looking statement include
(1) the impact of strong competitive responses to the company’s efforts
to leverage its brand power in the market; (2) the risks associated with
trade and consumer acceptance of the company’s initiatives; (3) the
company’s ability to realize projected cost savings and benefits; (4)
the company’s ability to manage changes to its business processes; (5)
the increased significance of certain of the company’s key trade
customers; (6) the impact of fluctuations in the supply or costs of
energy and raw and packaging materials; (7) the impact of portfolio
changes; (8) the uncertainties of litigation; (9) the impact of changes
in currency exchange rates, tax rates, interest rates, debt and equity
markets, inflation rates, economic conditions and other external
factors; (10) the impact of unforeseen business disruptions in one or
more of the company’s markets due to political instability, civil
disobedience, armed hostilities, natural disasters or other calamities;
and (11) other factors described in the company’s most recent Form 10-K
and subsequent Securities and Exchange Commission filings. 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.

CAMPBELL SOUP COMPANY CONSOLIDATED
STATEMENTS OF EARNINGS (unaudited)
(millions, except per share amounts)
		THREE MONTHS ENDED
		October 31,					November 1,
		2010					2009
Net sales		$	2,172				$	2,203
Costs and expenses
Cost of products sold			1,278					1,280
Marketing and selling expenses			277					284
Administrative expenses			140					133
Research and development expenses			31					29
Other expenses / (income)			2					(1	)
Total costs and expenses			1,728					1,725
Earnings before interest and taxes			444					478
Interest, net			30					27
Earnings before taxes			414					451
Taxes on earnings			135					147
Net earnings		$	279				$	304
Per share – basic
Net earnings		$	.82				$	.87
Dividends		$	.275				$	.25
Weighted average shares outstanding – basic			335					343
Per share – assuming dilution
Net earnings		$	.82				$	.87
Weighted average shares outstanding
– assuming dilution			338					346

CAMPBELL SOUP COMPANY CONSOLIDATED
SUPPLEMENTAL SCHEDULE OF SALES AND EARNINGS (unaudited)
(millions, except per share amounts)
		THREE MONTHS ENDED
		October 31,						November 1,						Percent
Sales		2010						2009						Change
Contributions:
U.S. Soup, Sauces and Beverages		$	1,103					$	1,140					(3	%)
Baking and Snacking			544						530					3	%
International Soup, Sauces and Beverages			372						374					(1	%)
North America Foodservice			153						159					(4	%)
Total sales		$	2,172					$	2,203					(1	%)
Earnings
Contributions:
U.S. Soup, Sauces and Beverages		$	295					$	331					(11	%)
Baking and Snacking			100						100					0	%
International Soup, Sauces and Beverages			51						44					16	%
North America Foodservice			23						26					(12	%)
Total operating earnings			469						501					(6	%)
Unallocated corporate expenses			(25	)					(23	)
Earnings before interest and taxes			444						478					(7	%)
Interest, net			(30	)					(27	)
Taxes on earnings			(135	)					(147	)
Net earnings		$	279					$	304					(8	%)
Per share – assuming dilution
Net earnings		$	.82					$	.87					(6	%)

CAMPBELL SOUP COMPANY CONSOLIDATED
BALANCE SHEETS (unaudited)
(millions)
		October 31,					November 1,
		2010					2009
Current assets		$	2,124				$	1,852
Plant assets, net			2,042					1,985
Intangible assets, net			2,538					2,494
Other assets			114					100
Total assets		$	6,818				$	6,431
Current liabilities		$	2,479				$	1,984
Long-term debt			1,946					2,249
Other liabilities			1,289					1,243
Total equity			1,104					955
Total liabilities and equity		$	6,818				$	6,431
Total debt		$	3,080				$	2,905
Cash and cash equivalents		$	291				$	76

Reconciliation of GAAP and Non-GAAP Financial Measures

First Quarter Ended October 31, 2010

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.

Items Impacting Earnings

The company believes that financial information excluding certain 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.

The following items impacted earnings in fiscal 2010:

								(1)		In fiscal 2008, the company announced initiatives to improve operational efficiency and long-term profitability, including selling certain salty snack food brands and assets in Australia, closing certain production facilities in Australia and Canada, and streamlining the company’s management structure. In fiscal 2010, the company recorded pre-tax restructuring charges of $12 million ($8 million after tax or $0.02 per share) for pension benefit costs related to these initiatives.
								(2)		In fiscal 2010, the company recorded deferred tax expense of $10 million ($0.03 per share) due to the enactment of U.S. health care legislation in March 2010. The law changed the tax treatment of subsidies to companies that provide prescription drug benefits to retirees. Accordingly, the company recorded the non-cash charge to reduce the value of the deferred tax asset associated with the subsidy.

The table below reconciles financial information, presented in
accordance with GAAP, to financial information excluding certain
transactions:

(millions, except per share amounts)			Year Ended
			Aug. 1, 2010
Earnings before interest and taxes, as reported			$	1,348
Add: Restructuring charges (1)				12
Adjusted Earnings before interest and taxes			$	1,360
Interest, net, as reported			$	106
Adjusted Earnings before taxes			$	1,254
Taxes on earnings, as reported			$	398
Add: Tax benefit from restructuring charges (1)				4
Deduct: Tax expense from health care legislation (2)				(10	)
Adjusted Taxes on earnings			$	392
Adjusted effective income tax rate				31.3	%
Net earnings, as reported			$	844
Add: Net adjustment from restructuring (1)				8
Add: Tax expense from health care legislation (2)				10
Adjusted Net earnings			$	862
Diluted earnings per share, as reported			$	2.42
Add: Net adjustment from restructuring charges (1)				0.02
Add: Tax expense from health care legislation (2)				0.03
Adjusted Diluted earnings per share			$	2.47

SOURCE: Campbell Soup Company

Campbell Soup Company
Anthony Sanzio (Media)
856-968-4390
or
Jennifer Driscoll (Analysts)
856-342-6081