caret-down

Campbell Reports Fourth Quarter and Fiscal 2003 Results

CAMDEN, N.J.–(BUSINESS WIRE)–Sept. 11, 2003–Campbell Soup
Company (NYSE:CPB) today reported diluted earnings per share for the
fourth quarter ended August 3, 2003 of $.18, compared to $.13 recorded
in the year-ago quarter. Earnings per share in the year-ago quarter
included amortization expense of approximately $.04, since eliminated
under SFAS No. 142, which the company adopted at the start of fiscal
2003, and approximately $.01 for costs related to the Australian
manufacturing reconfiguration.

For the quarter, net sales increased 19 percent to $1,455 million.
The following factors drove the increase:

    --  Volume and mix increased 6 percent

    --  Price added 2 percent

    --  Reduced promotional spending added 3 percent

    --  Currency added 5 percent

    --  Acquisitions contributed 3 percent

    --  The fourth quarter included 14 weeks compared to 13 weeks in
        the year-ago period, with the additional week accounting for
        approximately 7 - 8 percentage points of the sales increase.

For the fourth quarter of fiscal 2003, wet soup shipments compared
to a year ago were up 7 percent in the U.S. and 3 percent outside the
U.S., resulting in a 6 percent increase worldwide. In the U.S.,
ready-to-serve shipments rose 29 percent, broth shipments increased 22
percent, and condensed soup shipments declined 5 percent.

Total marketing investment for the quarter increased 17 percent.
Currency and acquisitions accounted for 7 percentage points of the
increase.

Net earnings were $74 million versus $55 million a year earlier.
Earnings for the year-ago quarter included amortization expense of $14
million, since eliminated under SFAS No. 142, and $4 million for costs
related to the Australian manufacturing reconfiguration.

For the fiscal 2003 year, the company reported diluted earnings
per share, before the cumulative effect of the accounting change, of
$1.52 compared to $1.28 for the prior year. Earnings per share for
fiscal 2002 included amortization expense of approximately $.13 per
share, since eliminated under SFAS No. 142, and approximately $.03 per
share of costs related to the Australian manufacturing
reconfiguration.

For the year, net sales increased 9 percent to $6,678 million. The
following factors drove the increase:

    --  Volume and mix increased 3 percent

    --  Price added 1 percent

    --  Currency added 3 percent

    --  Acquisitions contributed 2 percent

    --  The fiscal year included 53 weeks compared to 52 weeks in the
        prior year, with the additional week accounting for
        approximately 1 - 2 percentage points of the sales increase.

For fiscal year 2003, wet soup shipments compared to a year ago
were up 2 percent in the U.S. and 2 percent outside the U.S.,
resulting in a 2 percent increase worldwide. In the U.S.,
ready-to-serve soup shipments rose 8 percent, broth shipments
increased 13 percent, and condensed soup shipments declined 6 percent.

Total marketing investment was up 7 percent with currency and
acquisitions accounting for 5 percentage points of the increase.

Net earnings, before the cumulative effect of the accounting
change for fiscal 2003, were $626 million versus $525 million for the
prior year. Net earnings in fiscal 2002 included amortization expense
of $54 million, since eliminated upon the adoption of SFAS No. 142,
and costs of $14 million related to the Australian manufacturing
reconfiguration.

In addition, the company reported cash flow from operations of
$873 million compared with $1,017 million last year. The year-ago
result benefited from a significant reduction in working capital to
record low levels, which have been maintained in fiscal 2003. Capital
expenditures for fiscal 2003 were $283 million, slightly higher than
the $269 million of a year ago.

Douglas R. Conant, Campbell’s President and Chief Executive
Officer, said, “We have now delivered two years of top-line growth and
we are positioned to build on this performance in fiscal 2004. Our
results in fiscal 2003 demonstrate that our investments in quality,
new products and packaging, and improved marketing are taking hold. In
our North America Soup business, we have continued to deliver strong
growth in our ready-to-serve soups and broths and we have laid the
foundation for more growth with the introduction of our ‘M’m! M’m!
Good! To Go’ convenience line. In our condensed soup business, we are
taking steps to profitably improve trends through continued product
and packaging improvements, the rollout of our innovative gravity fed
shelving system, and by focusing on those segments with the most
competitive advantages, including kids and cooking. We have just
launched our new advertising campaign, ‘Make It Campbell’s Instead,’
which covers both ready-to-serve and condensed varieties.”

Conant continued, “In our North America Sauces and Beverages
segment, we are also seeing the positive impact of increased
investments behind such brands as ‘Pace’ Mexican sauces, ‘Prego’ pasta
sauces and ‘V8’ vegetable juices. In our Biscuits and Confectionery
segment, Pepperidge Farm and Arnotts delivered strong performances. We
have gained share in several of these businesses and we are continuing
to fill the innovation pipeline with convenient, on-trend products. As
we begin our new fiscal year, we are clearly a much more competitive
company, far better positioned to win with our customers and our
consumers. The table is set for stronger performance.”

For fiscal year 2004, the company expects earnings per share to be
approximately $1.58. This fiscal 2004 projection includes
approximately $.03 for incremental pension and post-retirement medical
expense and reflects the company’s continued commitment to maintaining
a significant level of marketing investment. In addition, fiscal 2003
had the benefit from the 53rd week of approximately $.02. For the
first quarter of fiscal year 2004, the company expects earnings to be
between $.48 – $.50 per share.

A summary of fiscal 2003 results by segment follows. For
comparative purposes, prior year business results have been adjusted
to exclude the amortization eliminated under SFAS No. 142.

North America Soup and Away From Home

Sales for North America Soup and Away From Home were $2,606
million, a 3 percent increase compared with a year ago. Operating
earnings of $632 million were flat compared to a year earlier. U.S.
soup shipments were up 2 percent over the prior year. Further details
include:

    --  Ready-to-serve soup shipments increased 8 percent behind the
        launch of Campbell's "Soup At Hand" sippable soups and strong
        shipment growth of "Campbell's Chunky" and "Campbell's Select"
        soups.

    --  New Campbell's "Soup At Hand" sippable soups finished the year
        with strong results, as sales exceeded expectations. As
        previously announced, Campbell is now shipping 7 new varieties
        of "Soup At Hand" as part of its "M'm! M'm! Good! To Go"
        convenience platform.

    --  Both "Campbell's Chunky" and "Campbell's Select" soups in
        microwavable bowls are now shipping as part of the "M'm! M'm!
        Good! To Go" convenience platform. Initial customer and
        consumer acceptance behind this initiative have been strong.

    --  Condensed soups declined 6 percent for the year. In the fourth
        quarter, the company began shipping condensed soups with new
        easy-open lids and improved chicken varieties.

    --  "Swanson" broth shipments were up 13 percent as consumers
        continued to respond to advertising and promotion supporting
        broth as an everyday ingredient for cooking.

    --  Away From Home soup sales were up with good growth in all soup
        formats. Stockpot had an especially strong year. These results
        were offset by volume reductions in low margin, non-soup
        products.

    --  Canadian soup sales showed good growth, helped by the regional
        introduction of new "Campbell's Gardennay" soups in aseptic
        packages.

    North America Sauces and Beverages

North America Sauces and Beverages sales were up 5 percent to
$1,246 million and operating earnings increased 12 percent to $289
million. These results were achieved behind strong gains in “Pace”
Mexican sauces, “V8” vegetable juices, “Campbell’s” tomato juice and
the introduction of new “V8 Splash” Smoothies and “Pace Mexican
Creations.” Additional highlights include:

    --  "Prego" Hearty Meat Sauces were introduced during the fourth
        quarter. Retail acceptance and initial consumer purchases have
        been strong.

    --  "Pace Mexican Creations" sauces are the largest single "Pace"
        brand initiative since Campbell's acquisition of the company.
        "Pace," the only brand of Mexican sauce advertising
        coast-to-coast, is the market share leader west of the
        Mississippi.

    --  Consumer demand for "V8" vegetable juices continued to respond
        favorably to advertising support in fiscal 2003. The "V8
        Splash" juice drink brand generated sales growth for the year
        behind the successful introduction of "V8 Splash" Smoothies.

    Biscuits and Confectionery

Sales for Biscuits and Confectionery increased 18 percent to
$1,774 million compared to last year. The Snack Foods Limited
acquisition in Australia accounted for 8 percentage points of the
sales increase and currency contributed 4 percentage points.

Operating earnings increased 14 percent to $212 million, with
currency translation accounting for 4 percentage points of the growth.
Operating earnings included $1 million of costs related to the
Australian manufacturing reconfiguration compared to $20 million in
fiscal year 2002. In fiscal year 2003, the company recorded
transitional expenses of $10 million related to the closure of the
Pepperidge Farm bakery in Norwalk, CT and the startup expenses of the
new bakery in Bloomfield, CT. Additional details include:

    --  Pepperidge Farm delivered strong sales performance in its
        cookies, crackers and bakery segments. New "Goldfish" Colors
        crackers, introduced in the first quarter of fiscal 2003, and
        Pepperidge Farm Mini Distinctive cookie varieties, introduced
        in the fourth quarter, have delivered strong sales.

    --  At Arnotts, sales expanded on growth in core cookie lines and
        the addition of Snack Foods Limited. Following the close of
        the fiscal year, Arnotts signed an agreement to purchase three
        chocolate biscuit brands, subject to regulatory approval.
        These brands are expected to complement Arnotts existing
        biscuit business.

    --  Godiva Chocolatier's worldwide sales grew despite an uncertain
        global economic environment. In fiscal 2003, Godiva opened 25
        new stores worldwide while closing 15 unprofitable stores.
        Same stores sales declined in North America, but rose in Japan
        and Europe.

    International Soup and Sauces

International Soup and Sauces sales increased 14 percent to $1,052
million. Favorable currency translations and the acquisition of Erin
Foods accounted for the sales increase. Operating earnings increased 7
percent to $128 million, due primarily to favorable currency
translation, partially offset by $8 million in costs related to the
discontinuance of certain European co-packing contracts. Strong
performance of instant dry soups across Europe was offset by weakness
in the wet soup and sauces businesses in the UK, France and Germany.
Further details include:

    --  The UK shortfall reflects declines in "Homepride" sauces and
        "Campbell's" branded soups.

    --  In Germany, a significant portion of the private-label soup
        business is being discontinued. The dry soup brand, "Heisse
        Tasse," performed strongly.

    --  In France, volume declined in the fourth quarter, driven by
        unusually warm weather conditions and aggressive competitive
        pressures.

    --  In Australia and Asia, both soups and sauces delivered solid
        top and bottom line growth.

    Conference Call

The company will host a conference call to discuss these results
on September 11, 2003 at 10:00 a.m. Eastern Standard Time. U.S.
participants may access the call at 1-888-730-9134 and non-U.S.
participants at 1-773-756-4630. Participants should call at least five
minutes prior to the starting time. The passcode is Campbell Soup
Company. The conference leader is Len Griehs. The call will also be
broadcast live over the Internet at http://www.campbellsoup.com and
can be accessed by clicking on the Webcast banner. A recording of the
call will be available approximately two hours after it is completed
through midnight September 16, 2003 at 1-800-967-7626 or
1-402-998-0917.

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 marketing investments,
sales 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
www.campbellsoup.com.

CONTACT: Jerry S. Buckley (Media)

(856) 342-6007

Leonard F. Griehs (Analysts)

(856) 342-6428

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


                                              THREE MONTHS ENDED
                                              ------------------
                                            August           July
                                            3, 2003        28, 2002
                                         -------------   -------------

Net sales                                $      1,455    $      1,223
                                         -------------   -------------

Costs and expenses
    Cost of products sold                         858             686
    Selling, general and
      administrative expenses                     442             409
                                         -------------   -------------
Total costs and expenses                        1,300           1,095
                                         -------------   -------------

Earnings before interest and taxes                155             128
     Interest, net                                 45              44
                                         -------------   -------------
Earnings before taxes                             110              84

Taxes on earnings                                  36              29
                                         -------------   -------------

Net earnings                             $         74    $         55
                                         =============   =============

Per share - basic
  Net earnings                           $        .18    $        .13
                                         =============   =============

  Dividends                              $      .1575    $      .1575
                                         =============   =============

Weighted average shares outstanding
  - basic                                         411             411
                                         =============   =============


Per share - assuming dilution
  Net earnings                           $        .18    $        .13
                                         =============   =============

Weighted average shares outstanding
  - assuming dilution                             411             411
                                         =============   =============


In the first quarter 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 July 28, 2002 would have been $69 or
$.17 per diluted share had the provisions of the standard been adopted
at the beginning of the prior year.

The period ended August 3, 2003 had 14 weeks. The period ended July
28, 2002 had 13 weeks.






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


                                               TWELVE MONTHS ENDED
                                               -------------------
                                              August          July
                                              3, 2003       28, 2002
                                           -------------  ------------

Net sales                                  $      6,678   $     6,133
                                           -------------  ------------

Costs and expenses
    Cost of products sold                         3,805         3,443
    Selling, general and
      administrative expenses                     1,768         1,705
    Restructuring charge                              -             1
                                           -------------  ------------
Total costs and expenses                          5,573         5,149
                                           -------------  ------------

Earnings before interest and taxes                1,105           984
     Interest, net                                  181           186
                                           -------------  ------------
Earnings before taxes                               924           798

Taxes on earnings                                   298           273
                                           -------------  ------------
Earnings before cumulative
  effect of accounting change                       626           525
Cumulative effect of accounting change               31             -
                                           -------------  ------------
Net earnings                               $        595   $       525
                                           =============  ============

Per share - basic
   Earnings before cumulative
     effect of accounting change           $       1.52   $      1.28
   Cumulative effect of accounting change          (.08)            -
                                           -------------  ------------
   Net earnings                            $       1.45   $      1.28
                                           =============  ============

   Dividends                               $        .63   $       .63
                                           =============  ============

Weighted average shares outstanding - basic         411           410
                                           ============= =============


Per share - assuming dilution
   Earnings before cumulative
     effect of accounting change           $       1.52   $      1.28
   Cumulative effect of accounting change          (.08)            -
                                           -------------  ------------
   Net earnings                            $       1.45   $      1.28
                                           =============  ============

Weighted average shares outstanding
  - assuming dilution                               411           411
                                           =============  ============


In the first quarter 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 twelve months ended July 28, 2002 would have been
$579 or $1.41 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 in the first quarter of fiscal 2003.

Fiscal 2003 had 53 weeks.  Fiscal 2002 had 52 weeks.






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


                                                THREE MONTHS ENDED
                                                ------------------
                                            August     July    Percent
Sales                                       3, 2003  28, 2002  Change
-----                                      --------- --------- -------
Contributions:
   North America Soup and Away
    From Home                                $  436    $  390     12%
   North America Sauces and
    Beverages                                   326       274     19%
   Biscuits and Confectionery                   444       343     29%
   International Soup and
    Sauces                                      249       216     15%
                                           --------- ---------
    Total sales                              $1,455    $1,223     19%
                                           ========= =========



Earnings
--------
Contributions:
   North America Soup and Away
    From Home                                $   71    $   73     -3%
   North America Sauces and
    Beverages                                    69        61     13%
   Biscuits and Confectionery                    45        28     61%
   International Soup and
    Sauces                                       31        30      3%
                                           --------- ---------
       Total operating earnings                 216       192     13%
       Unallocated corporate expenses           (61)      (46)
                                           --------- ---------

Earnings before interest
 and taxes                                      155       146      6%
Interest, net                                   (45)      (44)
Taxes on earnings                               (36)      (33)
                                           --------- ---------

     Net earnings                            $   74    $   69      7%
                                           ========= =========

Net earnings per share -
 assuming dilution                           $  .18    $  .17      6%
                                           ========= =========


Results for the period ended July 28, 2002 have been restated to
reflect the pro forma impact of SFAS No. 142. Amortization expense of
$18 ($14 after tax) has been eliminated from the prior period results.
As reported net earnings for the prior period were $55 or $.13 per
share.

Earnings contributions from Biscuits and Confectionery include the
effect of costs associated with the Australian manufacturing
reconfiguration plan. In the fourth quarter of fiscal 2002, costs were
$6 pre-tax ($4 after tax).

The period ended August 3, 2003 had 14 weeks. The period ended July
28, 2002 had 13 weeks.






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



                                              TWELVE MONTHS ENDED
                                              -------------------
                                           August     July    Percent
Sales                                      3, 2003  28, 2002  Change
-----                                     --------- --------- -------
Contributions:
   North America Soup and Away
    From Home                              $ 2,606   $ 2,524      3%
   North America Sauces and
    Beverages                                1,246     1,182      5%
   Biscuits and Confectionery                1,774     1,507     18%
   International Soup and
    Sauces                                   1,052       920     14%
                                          --------- ---------
    Total sales                            $ 6,678   $ 6,133      9%
                                          ========= =========



Earnings
--------
Contributions:
   North America Soup and Away
    From Home                              $   632   $   634      0%
   North America Sauces and
    Beverages                                  289       257     12%
   Biscuits and Confectionery                  212       186     14%
   International Soup and
    Sauces                                     128       120      7%
                                          --------- ---------
       Total operating earnings              1,261     1,197      5%
       Unallocated corporate expenses         (156)     (143)
                                          --------- ---------

Earnings before interest and
 taxes                                       1,105     1,054      5%
Interest, net                                 (181)     (186)
Taxes on earnings                             (298)     (289)
                                          --------- ---------
     Earnings before cumulative
      effect of accounting
      change                                   626       579      8%
     Cumulative effect of
      accounting change                        (31)        -
                                          --------- ---------
     Net earnings                          $   595   $   579      3%
                                          ========= =========

Net earnings per share before
 cumulative effect of
 accounting change
 - assuming dilution                       $  1.52   $  1.41      8%
                                          ========= =========

Results for the period ended July 28, 2002 have been restated to
reflect the pro forma impact of SFAS No. 142. Amortization expense of
$70 ($54 after tax) has been eliminated from the prior period results.
As reported net earnings for the prior period were $525 or $1.28 per
share.

Earnings contributions from Biscuits and Confectionery include the
effect of costs associated with the Australian manufacturing
reconfiguration plan. In the twelve month period ended August 3, 2003,
costs were both $1 pre- and after tax. In the twelve month period
ended July 28, 2002, costs were $20 pre-tax ($14 after tax).

Fiscal 2003 had 53 weeks. Fiscal 2002 had 52 weeks.





                  CAMPBELL SOUP COMPANY CONSOLIDATED
                            BALANCE SHEETS
                              (millions)

                                                  August      July
                                                  3, 2003   28, 2002
                                                ---------- ----------

Current assets                                   $  1,290   $  1,199

Plant assets, net                                   1,843      1,684

Intangible assets, net                              2,821      2,534

Other assets                                          251        304

                                                ---------- ----------
     Total assets                                $  6,205   $  5,721
                                                ========== ==========


Current liabilities                              $  2,783   $  2,678

Long-term debt                                      2,249      2,449

Nonpension postretirement benefits                    304        319

Other liabilities                                     482        389

Shareowners' equity (deficit)                         387       (114)
                                                ---------- ----------

     Total liabilities and shareowners' equity
      (deficit)                                  $  6,205   $  5,721
                                                ========== ==========


Total debt                                       $  3,528   $  3,645
                                                ========== ==========

Cash and cash equivalents                        $     32   $     21
                                                ========== ==========


Certain reclassifications were made to prior year financial
statements.


    CONTACT: Campbell Soup Company
             Jerry S. Buckley (Media)
             (856) 342-6007
             or
             Leonard F. Griehs (Analysts)
             (856) 342-6428

    SOURCE: Campbell Soup Company