caret-down

Campbell Reports First Quarter Results.

    Earnings Per Share from Continuing Operations Were $.70, an
                        Increase of 6 Percent.

                      Sales Increased 7 Percent.

CAMDEN, N.J.–(BUSINESS WIRE)–Nov. 19, 2007–Campbell Soup
Company (NYSE:CPB) today reported earnings from continuing operations
for the quarter ended October 28, 2007 of $270 million, compared to
$269 million in the prior year. Earnings per share from continuing
operations for the current quarter were $.70, compared to $.66 in the
year-ago period, an increase of 6 percent, reflecting a lower average
number of diluted shares outstanding due to the company’s share
repurchase programs.

For the first quarter, sales increased 7 percent to $2.298
billion. Sales for the quarter reflect the following factors:

    --  Volume and mix added 4 percent

    --  Price and sales allowances added 1 percent

    --  Increased promotional spending subtracted 1 percent

    --  Currency added 3 percent

Douglas R. Conant, Campbell’s President and Chief Executive
Officer, said, “We are satisfied with our sales performance in the
quarter, which was driven by solid overall volume growth. We are
pleased with the performance of many businesses in our portfolio,
including the strong top line growth in our baking and snacking
business and our U.S. beverage business, which continued its strong
growth trend. U.S. soup sales declined slightly compared to a very
strong quarter a year ago when we launched our new line of lower
sodium soups. U.S. soup results also were significantly impacted by an
exceptionally warm autumn.”

Conant continued, “Overall, the company’s gross margins were
negatively impacted in the quarter primarily due to higher cost
inflation, which was not sufficiently offset by our pricing actions.
We plan to improve our margin performance during the year through a
combination of greater price realization and ongoing productivity
improvements.”

Conant concluded, “We remain confident in our products and plans
for all of our businesses, including U.S. soup. As we head into the
key consumption period for soup, I fully expect that our U.S. soup
business will deliver better performance as the year progresses.”

The company confirmed its previous fiscal 2008 guidance. Campbell
expects its continuing operations to deliver sales growth in excess of
its long-term target range of between 3 and 4 percent, due in part to
a 53rd week of sales this fiscal year. The company also expects to
deliver EBIT growth between 7 and 9 percent from the fiscal 2007
adjusted base of $1.250 billion and earnings per share growth from
continuing operations between 5 and 7 percent from the fiscal 2007
adjusted base of $1.95, consistent with its long-term EPS growth
target.

A detailed reconciliation of the adjusted fiscal 2008 and 2007
financial information to the reported information is attached to this
release.

    First Quarter Financial Details

    --  Gross margin decreased to 41.5 percent from 42.6 percent in
        the prior year. The decline was primarily due to cost
        inflation and higher promotional spending, partially offset by
        productivity gains and higher selling prices.

    --  Marketing and selling expenses increased $32 million to $348
        million, primarily due to higher advertising expenses,
        currency, and higher selling expenses, principally in Godiva.

    --  At the end of the quarter, total debt was $2.814 billion
        compared to $2.863 billion a year ago. Net debt, or total debt
        minus cash and cash equivalents, was $2.737 billion compared
        to $2.633 billion a year ago, an increase of $104 million.

    --  Cash flow from operations in the quarter was a source of $74
        million as compared to a use in the prior year of $88 million.
        The prior year included a payment of $83 million to settle
        foreign currency hedges related to the company's divested U.K.
        and Ireland businesses. The current year benefited from a
        lower increase in working capital, principally accounts
        receivable and inventory.

    --  Administrative expenses increased $17 million to $152 million.
        The increase was primarily due to higher compensation and
        benefits costs, including those related to the company's North
        American business realignment announced in October, and
        currency.

    --  The tax rate was 30.6 percent compared to 32.2 percent a year
        ago. The lower tax for the quarter was primarily driven by a
        tax rate reduction in Germany. For Fiscal 2008, Campbell
        expects a full-year tax rate of approximately 32 percent.

    --  During the first quarter, Campbell repurchased 2 million
        shares for $78 million under two programs: 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.

    Summary of Fiscal 2008 First Quarter Results by Segment

    U.S. Soup, Sauces and Beverages

Sales for U.S. Soup, Sauces and Beverages were $1.097 billion, an
increase of 4 percent compared to a year ago. The change in sales
reflects the following factors:

    --  Volume and mix added 6 percent

    --  Increased promotional spending subtracted 2 percent

Total soup sales for the quarter declined 1 percent, compared to
10 percent growth a year ago, driven by the following:

    --  Sales of "Campbell's" condensed soups declined 2 percent,
        driven by lower sales of condensed eating soups.

    --  Sales of ready-to-serve soups declined 2 percent for the
        quarter. Sales increases in "Campbell's Select" and
        "Campbell's Chunky" canned soups were driven by increased
        promotions and advertising. "Campbell's Chunky" soup sales
        also benefited from the launch of the new Chunky Fully Loaded
        soups. These gains were more than offset by declines in the
        company's convenience platform, which includes soups in
        microwavable bowls and cups.

    --  U.S. soup sales benefited from "Campbell's" lower sodium
        soups, which continued to perform well.

    --  Sales of "Swanson" broth increased 8 percent due to increased
        advertising and the introduction of new sizes of existing
        aseptic varieties.

Operating earnings were $310 million compared with $322 million in
the prior-year period. The decrease in operating earnings was
primarily due to cost inflation and increased advertising and
promotional spending, partially offset by higher sales volumes and
productivity gains.

    Highlights of this segment's other businesses include:

    --  Beverage sales increased double digits, with gains in "V8"
        vegetable juice, "V8 V-Fusion" juice, "V8 Splash" juice
        drinks, and "Campbell's" tomato juice. Increased sales were
        driven by the continued strong consumer demand for healthy
        beverages, increased advertising, and a new agreement with
        Coca-Cola North America and Coca-Cola Enterprises Inc. for
        distribution of Campbell's refrigerated single-serve beverages
        in the U.S. and Canada.

    --  "Prego" pasta sauce sales increased double digits, while sales
        of "Pace" Mexican sauces declined.

    Baking and Snacking

Sales for Baking and Snacking were $532 million, up 10 percent
from a year ago. A breakdown of the change in sales follows:

    --  Volume and mix added 3 percent

    --  Price and sales allowances added 3 percent

    --  Currency added 5 percent

    --  The divestiture of the company's Papua New Guinea operations
        subtracted 1 percent

    Further details of sales results include the following:

    --  Pepperidge Farm achieved sales growth with gains in each of
        its businesses--bakery, cookies and crackers, and frozen.
       -- In the cookies and crackers business, sales gains were
        driven primarily by the growth of "Goldfish" crackers and
        strong performance of soft baked and 100-calorie pack cookies.

       -- The bakery business also delivered solid sales gains behind
        whole-grain breads, sandwich rolls, and bagels.
    --  Arnott's sales increased double digits primarily due to the
        favorable impact of currency and gains in the biscuits
        business, partially offset by declines in the snack foods
        business. The growth in the biscuit business was due to gains
        in "Tim Tam" chocolate biscuits, as well as sweet and savory
        products.

Operating earnings were $73 million compared with $68 million in
the prior-year period. The increase in operating earnings was driven
by the favorable impact of currency. Within Arnott’s, gains in the
biscuit business were offset by an earnings decline in the snack foods
business. In Pepperidge Farm, sales gains were offset by the impact of
higher commodity costs.

International Soup, Sauces and Beverages

Sales for International Soup, Sauces and Beverages were $389
million, an increase of 12 percent compared to a year ago. The change
in sales reflects the following factors:

    --  Volume and mix added 3 percent

    --  Price and sales allowances added 1 percent

    --  Currency added 8 percent

Excluding the impact of currency, sales growth was driven by solid
gains in the company’s businesses in Canada, Mexico, the Asia Pacific
region, Belgium, and France.

Operating earnings were $51 million compared to $48 million in the
year-ago period. The increase in operating earnings was driven by the
favorable impact of currency and improved sales performance, partially
offset by increased expenses to establish Campbell’s businesses in
Russia and China. Campbell’s soup products are now available in both
markets, as planned.

Other

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

Sales were $280 million, up 3 percent from a year ago. A breakdown
of the change in sales follows:

    --  Volume and mix added 2 percent

    --  Price and sales allowances added 1 percent

    --  Increased promotional spending subtracted 1 percent

    --  Currency added 1 percent

    Further details of sales results include the following:

    --  Godiva Chocolatier sales increased double digits due to growth
        in all regions and the favorable impact of currency.

    --  Away From Home sales decreased, with the favorable impact of
        currency more than offset by declines in frozen entrees and
        refrigerated soups.

Operating earnings were $25 million, compared to $26 million in
the prior-year period.

As previously announced, Campbell is exploring strategic
alternatives, including possible divestiture, for the Godiva business.

Unallocated Corporate expenses increased $2 million to $28
million.

Non-GAAP Financial Information

A reconciliation of the adjusted fiscal 2008 and 2007 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 19, 2007 at 10:00 a.m. Eastern Standard Time. U.S.
participants may access the call at 1-866-219-5885 and non-U.S.
participants at 1-703-639-1124. 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 23, 2007 at
1-888-266-2081 or 1-703-925-2533. The access code is 1152446.

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, Sauces and Beverages 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 foods and simple meals, including soup, baked snacks,
vegetable-based beverages, and premium chocolate products, with annual
revenues in excess of $7.8 billion. 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.campbellsoup.com.

Forward-Looking Statements

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 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 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.


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


                                                 THREE MONTHS ENDED
                                              ------------------------
                                              October 28,  October 29,
                                                 2007         2006
                                              -----------  -----------

Net sales                                     $    2,298   $    2,153
                                              -----------  -----------

Costs and expenses
   Cost of products sold                           1,344        1,236
   Marketing and selling expenses                    348          316
   Administrative expenses                           152          135
   Research and development expenses                  27           26
   Other expenses / (income)                          (4)           2
                                              -----------  -----------
Total costs and expenses                           1,867        1,715
                                              -----------  -----------

Earnings before interest and taxes                   431          438
Interest, net                                         42           41
                                              -----------  -----------
Earnings before taxes                                389          397

Taxes on earnings                                    119          128
                                              -----------  -----------

Earnings from continuing operations                  270          269
Earnings from discontinued operations                  -           22
                                              -----------  -----------
Net earnings                                  $      270   $      291
                                              ===========  ===========

Per share - basic
   Earnings from continuing operations        $      .71   $      .68
   Earnings from discontinued operations               -          .06
                                              -----------  -----------
   Net earnings                               $      .71   $      .74
                                              ===========  ===========

   Dividends                                  $      .22   $      .20
                                              ===========  ===========

Weighted average shares outstanding - basic          379          395
                                              ===========  ===========


Per share - assuming dilution
   Earnings from continuing operations        $      .70   $      .66
   Earnings from discontinued operations               -          .05
                                              -----------  -----------
   Net earnings                               $      .70   $      .72
                                              ===========  ===========

Weighted average shares outstanding
    - assuming dilution                              388          405
                                              ===========  ===========

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 28,  October 29,  Percent
Sales                                   2007         2006      Change
-----------------------------------  -----------  -----------  -------
Contributions:
   U.S. Soup, Sauces and Beverages   $    1,097   $    1,052       4%
   Baking and Snacking                      532          484      10%
   International Soup, Sauces and
    Beverages                               389          346      12%
   Other                                    280          271       3%
                                     -----------  -----------
Total sales                          $    2,298   $    2,153       7%
                                     ===========  ===========





Earnings
-----------------------------------
Contributions:
   U.S. Soup, Sauces and Beverages   $      310   $      322      (4%)
   Baking and Snacking                       73           68       7%
   International Soup, Sauces and
    Beverages                                51           48       6%
   Other                                     25           26      (4%)
                                     -----------  -----------
Total operating earnings                    459          464      (1%)
Unallocated corporate expenses              (28)         (26)
                                     -----------  -----------

Earnings before interest and taxes          431          438      (2%)
Interest, net                               (42)         (41)
Taxes on earnings                          (119)        (128)
                                     -----------  -----------

Earnings from continuing operations         270          269       0%
Earnings from discontinued
 operations                                   -           22
                                     -----------  -----------
Net earnings                         $      270   $      291      (7%)
                                     ===========  ===========

Per share - assuming dilution
   Earnings from continuing
    operations                       $      .70   $      .66       6%
   Earnings from discontinued
    operations                                -          .05
                                     -----------  -----------
Net earnings                         $      .70   $      .72
                                     ===========  ===========

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 28,  October 29,
                                                 2007         2006
                                              -----------  -----------

Current assets                                $    2,018   $    2,092

Plant assets, net                                  2,064        1,939

Intangible assets, net                             2,598        2,362

Other assets                                         378          506

                                              -----------  -----------
     Total assets                             $    7,058   $    6,899
                                              ===========  ===========


Current liabilities                           $    2,612   $    2,556

Long-term debt                                     1,773        2,116

Other liabilities                                  1,168          959

Shareowners' equity                                1,505        1,268

                                              -----------  -----------
     Total liabilities and shareowners'
      equity                                  $    7,058   $    6,899
                                              ===========  ===========


Total debt                                    $    2,814   $    2,863
                                              ===========  ===========

Cash and cash equivalents                     $       77   $      230
                                              ===========  ===========

Net debt                                      $    2,737   $    2,633
                                              ===========  ===========

Certain reclassifications were made to prior year financial
 statements.

        Reconciliation of GAAP and Non-GAAP Financial Measures
                    First Quarter October 28, 2007

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.

Net Debt
----------

The company believes that net debt is a non-GAAP measure that provides
 additional meaningful comparisons between the company's financial
 position at October 28, 2007 and October 29, 2006, and also 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 28, 2007  October 29, 2006
                                    ----------------  ----------------

Current notes payable               $         1,041   $           747
Long-term debt                                1,773             2,116
                                    ----------------  ----------------
Total debt                          $         2,814   $         2,863

Less: Cash and cash equivalents                 (77)             (230)
                                    ----------------  ----------------
Net debt                            $         2,737   $         2,633
                                    ================  ================
Items Impacting Earnings From Continuing Operations in Fiscal 2007
----------------------------------------------------------------------

The company believes that financial information excluding certain tax
 matters 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.

The following items impacted earnings from continuing operations in
 fiscal 2007:

(1) In the third quarter of fiscal 2007, the company recorded a pre-
     tax non-cash benefit of $20 million ($13 million after tax or
     $.03 per share) from the reversal of legal reserves due to
     favorable results in litigation.

(2) In the third quarter of fiscal 2007, the company recorded a tax
     benefit of $22 million resulting from the settlement of bilateral
     advance pricing agreements ("APA") among the company, the United
     States, and Canada related to royalties. In addition, the company
     reduced net interest expense by $4 million ($3 million after
     tax). The aggregate impact on earnings from continuing operations
     was $25 million, or $.06 per share.

(3) In the second quarter of fiscal 2007, the company recorded a pre-
     tax gain of $23 million ($14 million after tax or $.04 per share)
     associated with the sale of an idle manufacturing facility.

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

                 (millions, except per share amounts)
                                                          Year Ended
                                                         July 29, 2007
                                                         -------------

Earnings before interest and taxes, as reported          $      1,293
Deduct: Reversal of legal reserves (1)                            (20)
Deduct: Gain on sale of an idle manufacturing
 facility (3)                                                     (23)
                                                         -------------
Adjusted Earnings before interest and taxes              $      1,250
                                                         -------------

Interest, net, as reported                               $        144
Add: Reduction in interest expense related to the
 settlement of the APA (2)                                          4
                                                         -------------
Adjusted Interest, net                                   $        148
                                                         -------------

Adjusted Earnings before taxes                           $      1,102
                                                         -------------

Taxes on earnings, as reported                           $        326
Deduct: Tax impact of reversal of legal reserves (1)               (7)
Deduct: Tax impact of reduction of interest expense
 related to settlement of the APA (2)                              (1)
Add: Tax benefit from settlement of the APA (2)                    22
Deduct: Tax impact of gain on sale of an idle
 manufacturing facility (3)                                        (9)
                                                         -------------
Adjusted Taxes on earnings                               $        331
                                                         -------------

Adjusted effective income tax rate                               30.0%

Earnings from continuing operations, as reported         $        823
Deduct: Net adjustment related to reversal of legal
 reserves (1)                                                     (13)
Deduct: Net benefit from settlement of the APA (2)                (25)
Deduct: Gain on sale of an idle manufacturing
 facility (3)                                                     (14)
                                                         -------------
Adjusted Earnings from continuing operations             $        771
                                                         =============

Diluted earnings per share - continuing operations,
 as reported                                             $       2.08
Deduct: Net adjustment related to reversal of legal
 reserves (1)                                                   (0.03)
Deduct: Net benefit from settlement of the APA (2)              (0.06)
Deduct: Gain on sale of an idle manufacturing
 facility (3)                                                   (0.04)
                                                         -------------
Adjusted Diluted earnings per share - continuing
 operations                                              $       1.95
                                                         =============


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

    SOURCE: Campbell Soup Company