caret-down

Campbell Reports Fourth Quarter and Fiscal 2006 Results; U.S. Soup Sales Rise 9 Percent for the Quarter, 4 Percent for the Year

CAMDEN, N.J.–(BUSINESS WIRE)–Sept. 11, 2006–Campbell Soup
Company (NYSE:CPB) today reported diluted earnings per share for the
fourth quarter ended July 30, 2006 of $.11, and diluted earnings per
share for fiscal 2006 of $1.85. Excluding items impacting
comparability, earnings per share for the fourth quarter would have
been $.23, an increase of 10 percent, and earnings per share for
fiscal 2006 would have been $1.83, an increase of 12 percent.

Douglas R. Conant, Campbell’s President and Chief Executive
Officer, said, “We are very pleased with our performance in the fourth
quarter. We exceeded our expectations for earnings while we also
significantly increased spending on advertising in our U.S.
businesses. In addition, we achieved successful distribution of our
new lower sodium soups in the U.S.

“For the year, our overall results were outstanding, consistent
with our commitment to deliver quality growth. Our top-line growth
from continuing operations of 4 percent was at the upper end of our
target range, and our earnings per share growth of 12 percent, on an
adjusted basis, were well above our target. We continue to position
our business for sustainable sales and earnings growth.”

For the fourth quarter, the company reported earnings per share of
$.11 compared to $.23 recorded in the year-ago quarter. Factors
impacting comparability of earnings in the fourth quarter include the
following:

    --  During the fourth quarter of fiscal 2006, the company reached
        agreement for the sale of its U.K. and Irish businesses. The
        operating results for these businesses are reflected as
        discontinued operations. The company recorded $61 million, or
        $.15 per share, of expenses in discontinued operations related
        to the divestiture of these businesses. These expenses
        included $7 million ($5 million after-tax) of costs associated
        with the sale and $56 million in tax expense representing
        taxes on the difference between the book value and tax basis
        of the assets.

    --  In the fourth quarter of fiscal 2006, the company recorded in
        continuing operations a non-cash tax benefit of $14 million,
        or $.03 per share, from the anticipated use of higher levels
        of foreign tax credits, which can be utilized as a result of
        the sale of the company's U.K. and Irish businesses.

    --  In the fourth quarter of fiscal 2006, a $4 million, or $.01
        per share, charge was recorded associated with the
        repatriation of earnings from non-U.S. subsidiaries under the
        provisions of the American Jobs Creation Act (AJCA).

    --  Beginning in fiscal 2006, the company adopted Statement of
        Financial Accounting Standards No. 123R, "Share-Based Payment"
        (SFAS 123R). Under SFAS 123R, compensation expense is now
        recognized for all stock-based awards, including stock
        options. Had all awards in fiscal 2005 been expensed, the pro
        forma impact on the year-ago fourth quarter would result in a
        $7 million reduction in net earnings and a $.02 reduction in
        earnings per share, resulting in net earnings of $89 million
        and earnings per share of $.21.

After factoring these items into the reported results, earnings
per share for the fourth quarter of fiscal 2006 would have been $.23
compared to an adjusted result of $.21 in the year-ago period, an
increase of 10 percent.

For fiscal 2006, the company reported earnings per share of $1.85
compared to $1.71 recorded in the year-ago period. Factors impacting
comparability of earnings in the fiscal year include the following:

    --  The pro forma impact of SFAS 123R on fiscal 2005 earnings
        would have resulted in a $29 million reduction in net earnings
        and a $.07 reduction in earnings per share, yielding net
        earnings of $678 million and earnings per share of $1.64.

    --  In the first quarter of fiscal 2006, the company recorded a
        non-cash tax benefit resulting from the favorable resolution
        of a U.S. tax contingency related to transactions involving
        government securities in a prior period. The aggregate
        non-cash benefit of the settlement on net earnings was $60
        million, or $.14 per share.

    --  During the first quarter of 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 a $13 million pre-tax gain. The impact on net
        earnings was $8 million, or $.02 per share.

    --  During the fourth quarter of fiscal 2006, the company recorded
        $61 million or $.15 per share of expenses related to the
        divestiture of its U.K. and Irish businesses.

    --  In the fourth quarter of fiscal 2006, the company recorded a
        non-cash tax benefit of $14 million, or $.03 per share, from
        the anticipated use of higher levels of foreign tax credits,
        which can be utilized as a result of the sale of the company's
        U.K. and Irish businesses.

    --  For the year, the company recorded incremental tax expense of
        $13 million, or $.03 per share, associated with the
        repatriation of earnings from non-U.S. subsidiaries under the
        provisions of the AJCA.

After factoring these items into the reported results for the
fiscal year, earnings per share for fiscal 2006 would have been $1.83
compared to an adjusted result of $1.64 in fiscal 2005, an increase of
12 percent.

Continuing his comments on fiscal 2006 results, Conant said, “In
our North American business, we continued to gain momentum in the
marketplace. In U.S. Soup, we delivered 4 percent sales growth,
reflecting gains in all three soup businesses–condensed,
ready-to-serve and broth. This is the second consecutive year we have
delivered sales growth in our condensed franchise. We are also pleased
with the performance of our convenience platform as soup in
microwavable cups and bowls registered double-digit growth. In
addition, we successfully introduced ‘Campbell’s Select Gold Label’
soups in aseptic packaging, setting the stage for expanding our
premium soup offerings.

“Beyond soup, we had strong performance in our beverage business,
led by double-digit growth in ‘V8’ vegetable juice. Pepperidge Farm
had another excellent year with double-digit sales growth of
‘Goldfish’ crackers and strong growth in bakery products, notably
whole grain breads. Godiva Chocolatier also delivered a strong year
with growth in all regions.

“In our international business, our results in Europe and Asia
Pacific were mixed. However, we took an important step toward
improving our long-term growth profile by completing the divestiture
of our businesses in the U.K. and Ireland.”

Conant concluded, “We are also very pleased with our performance
this year on several key financial measures. We improved our gross
margin, consistent with our goal for the year. We continued to
generate outstanding cash flow from operations, achieving a record
level in fiscal 2006. This strong cash flow enabled us to pay down
debt, buy back shares and increase our dividend while continuing to
invest in our three core growth initiatives–lower sodium soup,
shelf-stable premium soup, and premium refrigerated soup.”

For the fourth quarter of fiscal 2006, sales from continuing
operations rose 4 percent to $1,454 million, reflecting the following
factors:

    --  Volume and mix added 1 percent

    --  Price and sales allowances added 3 percent

    --  Increased promotional spending subtracted 1 percent

    --  Currency added 1 percent

Earnings from continuing operations for the fourth quarter were
$84 million, or $.20 per share, compared to $81 million, or $.20 per
share, in the year-ago quarter. Items impacting comparability for the
fourth quarter are:

    --  $4 million in tax expense, or $.01 per share, related to the
        repatriation of earnings under the AJCA.

    --  A $14 million tax benefit, or $.03 per share, from the
        anticipated use of foreign tax credits which can be utilized
        as a result of the divestiture of the U.K. and Irish
        businesses.

    --  Earnings from continuing operations for the fourth quarter of
        fiscal 2005 would have been reduced by $7 million, or $.02 per
        share, had all stock-based incentive compensation been
        expensed.

After adjusting for these items, earnings from continuing
operations would have been $74 million and earnings per share would
have been $.18, both even with the prior year.

In fiscal 2006, the company reported sales from continuing
operations of $7,343 million, an increase of 4 percent compared to the
year-ago period, reflecting the following factors:

    --  Volume and mix added 1 percent

    --  Price and sales allowances added 3 percent

For fiscal 2006, earnings from continuing operations were $755
million compared to $644 million in the prior year and earnings per
share from continuing operations were $1.82 versus $1.56 in the prior
year. Items impacting comparability for the year are:

    --  An $8 million, or $.02 per share, gain related to a change in
        the method of accounting for inventory from the LIFO to the
        average cost method during the first quarter of fiscal 2006.

    --  Also during the first quarter, the company recorded a non-cash
        tax benefit resulting from the favorable resolution of a U.S.
        tax contingency related to transactions involving government
        securities in a prior period. The aggregate non-cash benefit
        of the settlement on earnings from continuing operations was
        $60 million, or $.14 per share.

    --  A $13 million tax expense, or $.03 per share, related to the
        repatriation of earnings under the AJCA.

    --  A $14 million tax benefit, or $.03 per share, from the
        anticipated use of foreign tax credits, which can be utilized
        as a result of the divestiture of the U.K. and Irish
        businesses.

    --  Earnings from continuing operations in fiscal 2005 would have
        been reduced by $28 million, or $.07 per share, had all
        stock-based incentive compensation been expensed.

After adjusting for these items, earnings from continuing
operations for the year would have been $686 million compared to $616
million for the prior year and earnings per share from continuing
operations would have been $1.66 versus $1.49 in the prior year, an
increase of 11 percent.

Cash flow from operations during fiscal 2006 reached a record
level of $1,226 million versus $990 million in the year-ago period.
The increase of $236 million was driven by reductions in working
capital and higher cash earnings.

Following the divestiture of the U.K. and Irish businesses, the
company begins fiscal 2007 with a new pro forma earnings base of $1.73
per share. This is based on the adjusted earnings from continuing
operations of $686 million combined with the pro forma impact of the
anticipated use of $620 million of the net proceeds from the
divestiture to repurchase approximately 17 million shares. For fiscal
2007, consistent with its long-term goals, the company expects its
continuing operations to deliver sales growth between 3 and 4 percent,
EBIT growth between 5 and 6 percent, and earnings per share growth
between 5 and 7 percent from the new pro forma base of $1.73.

    Summary of Fourth Quarter and Fiscal 2006 Results by Segment

    U.S. Soup, Sauces and Beverages

Sales in the fourth quarter of fiscal 2006 for U.S. Soup, Sauces
and Beverages were $556 million, a 7 percent increase compared to a
year ago. A breakdown of the change in sales follows:

    --  Volume and mix added 1 percent

    --  Price and sales allowances added 4 percent

    --  Reduced promotional spending added 2 percent

For the quarter, operating earnings were $114 million compared to
$104 million in the year-ago period. Operating earnings in the prior
year would have been $1 million lower had all stock-based incentive
compensation been expensed. The increase in earnings was driven by
higher selling prices and productivity improvements, which more than
offset cost inflation and increased advertising expenses.

U.S. soup sales for the quarter increased 9 percent compared to a
year ago, with condensed soup sales up 4 percent, ready-to-serve soup
sales up 20 percent, and broth sales up 5 percent.

For fiscal 2006, sales increased 5 percent to $3,257 million. A
breakdown of the change in sales follows:

    --  Volume and mix subtracted 1 percent

    --  Price and sales allowances added 6 percent

For the year, operating earnings were $815 million compared to
$747 million in the year-ago period. Operating earnings in the prior
year would have been $4 million lower had all stock-based incentive
compensation been expensed. Earnings for the year included an $8
million benefit from a change in the method of accounting for
inventory. The higher operating earnings were driven by higher selling
prices and productivity gains, which were partially offset by cost
inflation and higher advertising spending.

For the year, total U.S. soup sales increased 4 percent, with
condensed soup sales up 5 percent, ready-to-serve soup sales up 1
percent and broth sales up 11 percent.

Further details of sales results for the year include the
following:

    --  Condensed eating soups achieved solid sales growth due to
        higher selling prices, increased advertising, and the
        continued growth of "Campbell's" soup varieties that
        particularly appeal to kids. Condensed cooking soup sales
        increased due to higher selling prices, a strong holiday
        performance, and increased advertising support. The sale of
        condensed soup continued to benefit from the increased number
        of gravity-feed shelving systems, which are now installed in
        16,000 retail locations compared to 14,000 a year ago.

    --  Sales of ready-to-serve soups were driven by the introductions
        of restaurant-quality "Campbell's Select Gold Label" soups and
        "Campbell's" classic varieties in microwavable bowls offset by
        sales declines in "Campbell's Chunky" soups and the
        discontinuation of "Campbell's Kitchen Classics" soups. Sales
        of "Campbell's Chunky" soups, which were negatively impacted
        earlier in the year by a change in promotional spending to
        reduce discounting, have rebounded over the course of the
        fiscal year.

    --  Sales of the convenience platform grew significantly driven by
        the introduction of "Campbell's" classic varieties in
        microwavable bowls and gains in "Campbell's Select" and
        "Campbell's Chunky" microwavable bowls, as well as "Campbell's
        Soup at Hand" soups.

    --  "Swanson" broth delivered double-digit sales growth, driven by
        consumers' increased preference for aseptically-packaged
        broth, which benefited from the growth of organic varieties,
        and successful holiday merchandising activity.

    Highlights of this segment's other businesses include:

    --  Beverage sales grew at a double-digit rate, driven by the
        significant growth of "V8" vegetable juice and the
        introduction of "V8 V-Fusion," a 100% juice beverage that
        provides a full serving of fruits and a full serving of
        vegetables in each 8 ounce serving. These gains were partially
        offset by a sales decline in "V8 Splash" juice beverages.

    --  In sauces, both "Prego" pasta sauce and "Pace" Mexican sauce
        businesses delivered sales growth.

    Baking and Snacking

Sales in the fourth quarter of fiscal 2006 for Baking and Snacking
were $438 million versus $439 million in the year-ago period.

    A breakdown of the change in sales follows:

    --  Volume and mix added 2 percent

    --  Price and sales allowances added 2 percent

    --  Increased promotional spending subtracted 3 percent

    --  Currency subtracted 1 percent

For the quarter, operating earnings were $62 million compared to
$69 million in the year-ago period. Operating earnings in the prior
year would have been $2 million lower had all stock-based incentive
compensation been expensed. The earnings decline was due to weakness
in the Indonesian biscuit business and the unfavorable impact of
currency, while in Australia earnings growth from the Arnott’s biscuit
business was offset by significant declines in its snack foods
business. Earnings at Pepperidge Farm were flat, reflecting expenses
related to discontinued products.

For fiscal 2006, Baking and Snacking sales were $1,747 million
versus $1,742 million in the year-ago period. A breakdown in the
change in sales follows:

    --  Price and sales allowances added 3 percent

    --  Increased promotional spending subtracted 2 percent

    --  Currency subtracted 1 percent

For the year, operating earnings were $187 million compared to
$198 million a year ago. Operating earnings in the prior year would
have been $8 million lower had all stock-based incentive compensation
been expensed. Earnings for the year included a $5 million benefit
from a change in the method of accounting for inventory. Operating
earnings growth at Pepperidge Farm was offset by declines in the
Indonesian biscuit business and in Australia, where significant
declines in Arnott’s snack foods business were only partially offset
by gains in its biscuit business. Earnings were also negatively
impacted by unfavorable currency.

    Further details of sales results include the following:

    --  Pepperidge Farm achieved sales gains driven by increased
        volume in bakery, as well as cookies and crackers. In bakery,
        sales increased due to continued growth of whole grain breads,
        aided by the introduction of whole grain swirl breads. In
        cookies and crackers, sales growth was driven primarily by the
        double-digit growth of "Goldfish" crackers, which benefited
        from the introduction of 100-calorie packs. Frozen sales
        declined slightly.

    --  Arnott's sales declined due to the unfavorable impact of
        currency and declines in its snack foods business, partially
        offset by growth in biscuits. Gains in the biscuit business
        were achieved in both sweet and savory products. In sweet
        biscuits, the chocolate portfolio delivered solid performance
        behind double-digit growth of the core "Tim Tam" brand. In
        savory biscuits, growth was driven by "Shapes" and the
        introduction of new "Flavours of the World" varieties. These
        gains were partially offset by declines in the private label
        business.

    International Soup and Sauces

Sales in the fourth quarter of fiscal 2006 for International Soup
and Sauces were $260 million, a 2 percent increase compared to a year
ago.

    A breakdown of the change in sales follows:

    --  Increased promotional spending subtracted 1 percent

    --  Currency added 3 percent

For the quarter, operating earnings were $5 million compared to
$17 million in the year-ago period. Operating earnings in the prior
year would have been $1 million lower had all stock-based incentive
compensation been expensed. The earnings decline was due to the
expenses in Europe associated with improving the cost structure of the
supply chain and an organizational realignment due to the U.K. and
Irish divestiture.

For fiscal 2006, International Soup and Sauces sales increased 2
percent to $1,255 million. A breakdown of the change in sales follows:

    --  Volume and mix added 3 percent

    --  Currency subtracted 1 percent

For the year, operating earnings were $144 million compared to
$143 million in the prior-year period. Operating earnings in the prior
year would have been $3 million lower had all stock-based incentive
compensation been expensed. Operating earnings were driven by gains in
Canada, which delivered strong sales performance, partially offset by
expenses in Europe associated with improving the cost structure of the
supply chain and an organizational realignment due to the U.K. and
Irish divestiture.

    Further details of sales results include the following:

    --  In Canada, sales were favorably impacted by currency and also
        by a solid performance in the core soup business.
        Ready-to-serve soup grew at a double-digit rate, aided by the
        successful launch of "Campbell's Soup at Hand" soups.

    --  The Australian soup business delivered double-digit growth on
        the strength of the ready-to-serve soup and broth businesses.
        "Campbell's Chunky" soups, "Campbell's Velish" aseptic soups,
        and soups in microwavable bowls were each significant
        contributors to this performance.

    --  In Europe, sales declined primarily due to the unfavorable
        impact of currency. Excluding the impact of currency, sales
        grew slightly driven by gains in Belgium and by higher sales
        of "V8" vegetable juice in the region.

    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 in the fourth quarter of fiscal 2006 were $200 million, an
increase of 6 percent compared to the same period a year ago.

    A breakdown of the change in sales follows:

    --  Volume and mix added 4 percent

    --  Price and sales allowances added 3 percent

    --  Increased promotional spending subtracted 2 percent

    --  Currency added 1 percent

For the quarter, the segment recorded an operating loss of $12
million, compared to a loss of $11 million in the prior-year period.
The operating loss in the prior year would have been $1 million higher
had all stock-based incentive compensation been expensed. Operating
losses for the fourth quarter are typical due to the seasonal sales
pattern of the Godiva business.

For fiscal 2006, sales increased 8 percent to $1,084 million
compared to the same period a year ago. A breakdown of the change in
sales follows:

    --  Volume and mix added 6 percent

    --  Price and sales allowances added 3 percent

    --  Increased promotional spending subtracted 1 percent

For the year, operating earnings were $110 million, even with the
prior-year period. Operating earnings in the prior year would have
been $6 million lower had all stock-based incentive compensation been
expensed. Operating earnings growth was driven by solid sales
increases at Godiva.

    Further details include the following:

    --  Godiva Chocolatier sales increases were driven by same store
        sales growth in all regions. In the U.S., new products, such
        as the Platinum Collection and "Chocolixir" beverages achieved
        good results. Growth in Europe was also driven by increases in
        duty-free sales. In Asia, new store openings also contributed
        to growth.

    --  The Away From Home businesses in the U.S. and Canada delivered
        solid sales growth in soup, including retail refrigerated
        soups, and beverages.

    Non-GAAP Financial Information

A reconciliation of the adjusted fiscal 2006 and 2005 financial
information to the reported 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 September 11, 2006 at 10:00 a.m. Eastern Standard Time. U.S.
participants may access the call at 1-866-818-1223 and non-U.S.
participants at 1-703-639-1376. 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, September 15, 2006, by dialing
1-888-266-2081 or 1-703-925-2533 and using access code 956582.

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, share repurchase, pricing, 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

Beginning in fiscal year 2005, 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
                 (millions, except per share amounts)


                                                THREE MONTHS ENDED
                                            --------------------------
                                              July 30,       July 31,
                                                2006           2005
                                            ------------   -----------

Net sales                                   $     1,454    $    1,404
                                            ------------   -----------

Costs and expenses
    Cost of products sold                           843           829
    Marketing and selling expenses                  262           227
    Administrative  expenses                        177           161
    Research and development expenses                29            27
    Other expenses / (income)                         4            (1)
                                            ------------   -----------
Total costs and expenses                          1,315         1,243
                                            ------------   -----------

Earnings before interest and taxes                  139           161
Interest,  net                                       41            46
                                            ------------   -----------
Earnings before taxes                                98           115

Taxes on earnings                                    14            34
                                            ------------   -----------

Earnings from continuing operations                  84            81
Earnings (loss) from discontinued
 operations                                         (40)           15
                                            ------------   -----------
Net earnings                                $        44    $       96
                                            ============   ===========

Per share - basic
   Earnings from continuing operations      $       .21    $      .20
   Earnings (loss) from discontinued
    operations                                     (.10)          .04
                                            ------------   -----------
   Net earnings                             $       .11    $      .23
                                            ============   ===========

   Dividends                                $       .18    $      .17
                                            ============   ===========

Weighted average shares outstanding - basic         406           409
                                            ============   ===========


Per share - assuming dilution
   Earnings from continuing operations      $       .20    $      .20
   Earnings (loss) from discontinued
    operations                                     (.10)          .04
                                            ------------   -----------
   Net earnings                             $       .11    $      .23
                                            ============   ===========

Weighted average shares outstanding
        - assuming dilution                         416           414
                                            ============   ===========


The company adopted SFAS 123R in the first quarter of fiscal 2006
which requires that all stock-based awards be expensed. Had
compensation expense been recognized in fiscal 2005 for all
stock-based awards, an additional pre-tax expense of $11 would have
been recognized. Earnings from continuing operations would have been
$74 and diluted earnings per share from continuing operations would
have been $.18. The 2005 pre-tax incremental compensation expense
would have been recognized as follows on the Consolidated Statements
of Earnings: Cost of products sold - $1; Marketing and selling - $3;
Administrative - $6; and Research and development - $1.

In the fourth quarter of fiscal 2006, an incremental tax expense of $4
(or $.01 per share) was recorded related to repatriated earnings from
non-U.S. subsidiaries under the provision of the American Jobs
Creation Act.

In the fourth quarter of fiscal 2006, a non-cash tax benefit of $14
(or $.03 per share) was recorded from the anticipated use of higher
levels of foreign tax credits, which can be utilized as a result of
the sale of the company's United Kingdom and Irish businesses.

Earnings from discontinued operations include $56 of deferred tax
expense due to book tax basis differences and $5 after-tax costs
associated with the sale of the United Kingdom and Irish businesses.

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







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


                                                TWELVE MONTHS ENDED
                                             -------------------------
                                               July 30,      July 31,
                                                 2006          2005
                                             -----------   -----------

Net sales                                    $    7,343    $    7,072
                                             -----------   -----------

Costs and expenses
    Cost of products sold                         4,268         4,175
    Marketing and selling expenses                1,203         1,131
    Administrative expenses                         617           549
    Research and development expenses                99            90
    Other expenses / (income)                         5            (5)
                                             -----------   -----------
Total costs and expenses                          6,192         5,940
                                             -----------   -----------

Earnings before interest and taxes                1,151         1,132
Interest, net                                       150           180
                                             -----------   -----------
Earnings before taxes                             1,001           952

Taxes on earnings                                   246           308
                                             -----------   -----------

Earnings from continuing operations                 755           644
Earnings from discontinued operations                11            63
                                             -----------   -----------
Net earnings                                 $      766    $      707
                                             ===========   ===========

Per share - basic
   Earnings from continuing operations       $     1.86    $     1.57
   Earnings from discontinued operations            .03           .15
                                             -----------   -----------
   Net earnings                              $     1.88    $     1.73
                                             ===========   ===========

   Dividends                                 $      .72    $      .68
                                             ===========   ===========

Weighted average shares outstanding - basic         407           409
                                             ===========   ===========

Per share - assuming dilution
   Earnings from continuing operations       $     1.82    $     1.56
   Earnings from discontinued operations            .03           .15
                                             -----------   -----------
   Net earnings                              $     1.85    $     1.71
                                             ===========   ===========

Weighted average shares outstanding
        - assuming dilution                         414           413
                                             ===========   ===========


The company adopted SFAS 123R in the first quarter of fiscal 2006
which requires that all stock-based awards be expensed. Had
compensation expense been recognized in fiscal 2005 for all stock-
based awards, an additional pre-tax expense of $45 would have been
recognized. Earnings from continuing operations would have been $616
and diluted earnings per share from continuing operations would have
been $1.49. The 2005 pre-tax incremental compensation expense would
have been recognized as follows on the Consolidated Statements of
Earnings: Cost of products sold - $4; Marketing and selling - $12;
Administrative - $25; and Research and development - $4.

In the first quarter of 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 the first quarter of 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 net earnings was $60, or $.14 per
share.

In fiscal 2006, an incremental tax expense of $13 (or $.03 per share)
was recorded related to repatriated earnings from non-U.S.
subsidiaries under the provision of the American Jobs Creation Act.

In the fourth quarter of fiscal 2006, a non-cash tax benefit of $14
(or $.03 per share) was recorded from the anticipated use of higher
levels of foreign tax credits, which can be utilized as a result of
the sale of the company's United Kingdom and Irish businesses.

Earnings from discontinued operations include $56 of deferred tax
expense due to book tax basis differences and $5 after-tax costs
associated with the sale of the United Kingdom and Irish businesses.

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
                 (millions, except per share amounts)



                                          THREE MONTHS ENDED
                                         --------------------
                                          July 30,   July 31,  Percent
Sales                                       2006       2005    Change
-----                                    ---------  ---------  -------
Contributions:
   U.S. Soup, Sauces and Beverages       $    556   $    521        7%
   Baking and Snacking                        438        439        0%
   International Soup and Sauces              260        256        2%
   Other                                      200        188        6%
                                         ---------  ---------
Total sales                              $  1,454   $  1,404        4%
                                         =========  =========





Earnings
--------
Contributions:
   U.S. Soup, Sauces and Beverages       $    114   $    104       10%
   Baking and Snacking                         62         69      -10%
   International Soup and Sauces                5         17      -71%
   Other                                      (12)       (11)      -9%
                                         ---------  ---------
Total operating earnings                      169        179       -6%
Unallocated corporate expenses                (30)       (18)
                                         ---------  ---------

Earnings before interest and taxes            139        161      -14%
Interest, net                                 (41)       (46)
Taxes on earnings                             (14)       (34)
                                         ---------  ---------

Earnings from continuing operations            84         81        4%
Earnings (loss) from discontinued
 operations                                   (40)        15
                                         ---------  ---------
Net earnings                             $     44   $     96      -54%
                                         =========  =========

Per share - assuming dilution
   Earnings from continuing operations   $    .20   $    .20        0%
   Earnings (loss) from discontinued
    operations                               (.10)       .04
                                         ---------  ---------
   Net earnings                          $    .11   $    .23       52%
                                         =========  =========


The company adopted SFAS 123R in the first quarter of fiscal 2006
which requires that all stock-based awards be expensed. Had
compensation expense been recognized in fiscal 2005 for all stock-
based awards, an additional pre-tax expense of $11 would have been
recognized. Earnings from continuing operations would have been $74
and diluted earnings per share from continuing operations would have
been $.18. The 2005 pre-tax incremental compensation expense would
have been recognized as follows: U.S. Soup, Sauces and Beverages - $1;
Baking and Snacking - $2; International Soup and Sauces - $1; Other -
$1; and Unallocated Corporate - $6.

In the fourth quarter of fiscal 2006, an incremental tax expense of $4
(or $.01 per share) was recorded related to repatriated earnings from
non-U.S. subsidiaries under the provision of the American Jobs
Creation Act.

In the fourth quarter of fiscal 2006, a non-cash tax benefit of $14
(or $.03 per share) was recorded from the anticipated use of higher
levels of foreign tax credits, which can be utilized as a result of
the sale of the company's United Kingdom and Irish businesses.

Earnings from discontinued operations include $56 of deferred tax
expense due to book tax basis differences and $5 after-tax costs
associated with the sale of the United Kingdom and Irish businesses.

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
                 (millions, except per share amounts)



                                         TWELVE MONTHS ENDED
                                         --------------------
                                          July 30,   July 31,  Percent
Sales                                       2006       2005    Change
-----                                    ---------  ---------  -------
Contributions:
   U.S. Soup, Sauces and Beverages       $  3,257   $  3,098        5%
   Baking and Snacking                      1,747      1,742        0%
   International Soup and Sauces            1,255      1,227        2%
   Other                                    1,084      1,005        8%
                                         ---------  ---------
Total sales                              $  7,343   $  7,072        4%
                                         =========  =========





Earnings
--------
Contributions:
   U.S. Soup, Sauces and Beverages       $    815   $    747        9%
   Baking and Snacking                        187        198       -6%
   International Soup and Sauces              144        143        1%
   Other                                      110        110        0%
                                         ---------  ---------
Total operating earnings                    1,256      1,198        5%
Unallocated corporate expenses               (105)       (66)
                                         ---------  ---------

Earnings before interest and taxes          1,151      1,132        2%
Interest, net                                (150)      (180)
Taxes on earnings                            (246)      (308)
                                         ---------  ---------

Earnings from continuing operations           755        644       17%
Earnings from discontinued operations          11         63
                                         ---------  ---------
Net earnings                             $    766   $    707        8%
                                         =========  =========

Per share - assuming dilution
   Earnings from continuing operations   $   1.82   $   1.56       17%
   Earnings from discontinued
    operations                                .03        .15
                                         ---------  ---------
    Net earnings                         $   1.85   $   1.71        8%
                                         =========  =========


The company adopted SFAS 123R in the first quarter of fiscal 2006
which requires that all stock-based awards be expensed. Had
compensation expense been recognized in fiscal 2005 for all
stock-based awards, an additional pre-tax expense of $45 would have
been recognized. Earnings from continuing operations would have been
$616 and diluted earnings per share from continuing operations would
have been $1.49. The 2005 pre-tax incremental compensation expense
would have been recognized as follows: U.S. Soup, Sauces and Beverages
- $4; Baking and Snacking - $8; International Soup and Sauces - $3;
Other - $6; and Unallocated Corporate - $24.

In the first quarter of 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 the first quarter of 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 net earnings was $60, or $.14 per
share.

In fiscal 2006, an incremental tax expense of $13 (or $.03 per share)
was recorded related to repatriated earnings from non-U.S.
subsidiaries under the provision of the American Jobs Creation Act.

In the fourth quarter of fiscal 2006, a non-cash tax benefit of $14
(or $.03 per share) was recorded from the anticipated use of higher
levels of foreign tax credits, which can be utilized as a result of
the sale of the company's United Kingdom and Irish businesses.

Earnings from discontinued operations include $56 of deferred tax
expense due to book tax basis differences and $5 after-tax costs
associated with the sale of the United Kingdom and Irish businesses.

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







                  CAMPBELL SOUP COMPANY CONSOLIDATED
                            BALANCE SHEETS
                              (millions)



                                                July 30,     July 31,
                                                  2006         2005
                                               ----------   ----------

Current assets                                 $   2,012    $   1,483

Current assets of discontinued operations            100            -

Plant assets, net                                  1,954        1,987

Intangible assets, net                             2,361        3,009

Other assets                                         605          297

Non-current assets of discontinued operations        838            -

                                               ----------   ----------
     Total assets                              $   7,870    $   6,776
                                               ==========   ==========


Current liabilities                            $   2,884    $   2,002

Current liabilities of discontinued operations        78            -

Long-term debt                                     2,116        2,542

Nonpension postretirement benefits                   278          278

Other liabilities                                    721          684

Non-current liabilities of discontinued
 operations                                           25            -

Shareowners' equity                                1,768        1,270

                                               ----------   ----------
     Total liabilities and shareowners'
      equity                                   $   7,870    $   6,776
                                               ==========   ==========


Total debt                                     $   3,213    $   2,993
                                               ==========   ==========

Cash and cash equivalents                      $     657    $      40
                                               ==========   ==========

Net debt                                       $   2,556    $   2,953
                                               ==========   ==========


Certain reclassifications were made to prior year financial
statements.

Reconciliation of GAAP and Non-GAAP Financial Measures

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 impact of changes in accounting methods, certain tax matters
and other transactions not considered to be part of the ongoing
business on financial information are as follows:

    (1) In the first quarter of fiscal 2006, 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. Prior
        periods were not restated since the impact on previously
        issued financial statements was not considered material.

    (2) In the first quarter of fiscal 2006, the company adopted SFAS
        123R which requires that all stock-based compensation be
        expensed based on the fair value of the awards. In fiscal
        2005, the company did not recognize compensation expense for
        stock options under previous accounting guidelines. This
        adjustment reflects the pro forma impact had all stock-based
        awards been expensed.

    (3) In the first quarter of fiscal 2006, 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 net
        earnings was $60 million, or $.14 per share.

    (4) In fiscal 2006, the company recorded incremental tax expense
        of $13 million associated with the repatriation of earnings
        under the American Jobs Creation Act. The company recorded $4
        million incremental tax expense in the fourth quarter of
        fiscal 2006.

    (5) In the fourth quarter of fiscal 2006, the company recorded a
        non-cash tax benefit of $14 million from the anticipated use
        of higher levels of foreign tax credits, which can be utilized
        as a result of the sale of the company's United Kingdom and
        Irish businesses.

    (6) On August 15, 2006, the company completed the sale of its
        businesses in the United Kingdom and Ireland pursuant to a
        Sale and Purchase Agreement dated July 12, 2006. The results
        of these businesses are reflected as discontinued operations.
        The 2006 results of discontinued operations include $56
        million of deferred tax expense due to book tax basis
        differences and $5 million after-tax costs associated with the
        sale of the businesses.

The company believes that financial information excluding certain
changes in accounting methods and certain 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 table below reconciles financial information, presented in
accordance with GAAP, to financial information excluding the impact of
changes in accounting methods, certain tax matters, and items
associated with the sale of the businesses:

                                          Fourth Quarter          %
                                   ----------------------------
                                   July 30, 2006  July 31, 2005 Change
                                   ---------------------------- ------

Earnings before interest and taxes,
 as reported                       $         139  $        161
  Deduct:  Impact had all stock-
   based awards been expensed under
   SFAS 123R (2)                               -           (11)
                                   ----------------------------
Adjusted Earnings before interest
 and taxes                         $         139  $        150    (7)%
                                   ----------------------------

 Interest, net,  as reported       $          41  $         46

                                   ----------------------------
Adjusted Earnings before taxes     $          98  $        104    (6)%
                                   ----------------------------

Taxes on earnings, as reported     $          14  $         34
  Deduct:  Tax impact had all
   stock-based awards been expensed
   under SFAS 123R (2)                         -            (4)
  Deduct:  Incremental tax recorded
   for earnings to be repatriated
   under the American Jobs Creation
   Act (4)                                    (4)            -
  Add:  Adjustment to tax expense
   related to the use of foreign
   tax credits (5)                            14             -

                                   ----------------------------
Adjusted Taxes on earnings         $          24  $         30
                                   ----------------------------

Adjusted effective income tax rate          24.5%         28.8%

Earnings from continuing
 operations, as reported           $          84  $         81
  Deduct:  Impact had all stock-
   based awards been expensed under
   SFAS 123R (2)                               -            (7)
  Add:  Incremental tax recorded
   for earnings to be repatriated
   under the American Jobs Creation
   Act (4)                                     4             -
  Deduct:  Adjustment to tax
   expense related to the use of
   foreign tax credits (5)                   (14)            -
                                   ----------------------------
Adjusted Earnings from continuing
 operations                        $          74  $         74     - %
                                   ============================

Earnings from continuing operations
 per share, as reported            $        0.20  $       0.20
  Deduct:  Impact had all stock-
   based awards been expensed under
   SFAS 123R (2)                               -         (0.02)
  Add:  Incremental tax recorded
   for earnings to be repatriated
   under the American Jobs Creation
   Act (4)                                  0.01             -
  Deduct:  Adjustment to tax
   expense related to the use of
   foreign tax credits (5)                 (0.03)            -

                                   ----------------------------
Adjusted Earnings from continuing
 operations per share              $        0.18  $       0.18     - %
                                   ============================



                                          Fourth Quarter          %
                                   ----------------------------
                                   July 30, 2006  July 31, 2005 Change
                                   ---------------------------- ------

Earnings (loss) from discontinued
 operations, as reported           $         (40) $         15
  Add:  Adjustments to tax expense
   due to the sale of the
   businesses and after-tax costs
   associated with the sale (6)               61             -
                                   ----------------------------
Adjusted Earnings from
 discontinued operations           $          21  $         15     40%
                                   ============================

Earnings (loss) from discontinued
 operations per share, as reported $       (0.10) $       0.04
  Add:  Adjustments to tax expense
   due to the sale of the
   businesses and after-tax costs
   associated with the sale (6)             0.15             -
                                   ----------------------------
Adjusted Earnings from
 discontinued operations per share $        0.05  $       0.04     25%
                                   ============================

The adjusted net earnings and net earnings per share after
factoring in all items are as follows:

                                          Fourth Quarter          %
                                   ----------------------------
                                   July 30, 2006  July 31, 2005 Change
                                   ---------------------------- ------


 Net earnings, as reported         $          44  $         96

 Adjustments                                  51            (7)
                                   ----------------------------

 Adjusted Net earnings             $          95  $         89      7%
                                   ============================

 Net earnings per share, as
  reported                         $        0.11  $       0.23

 Adjustments                                0.12         (0.02)
                                   ----------------------------

 Adjusted Net earnings per share   $        0.23  $       0.21     10%
                                   ============================




                                           Year-to-Date              %
                                   ----------------------------
                                   July 30, 2006  July 31, 2005 Change
                                   ---------------------------- ------

Earnings before interest and taxes,
 as reported                       $       1,151  $      1,132
  Deduct:  Impact of change in
   inventory accounting method (1)           (13)            -
  Deduct:  Impact had all stock-
   based awards been expensed under
   SFAS 123R (2)                               -           (45)
                                   ----------------------------
Adjusted Earnings before interest
 and taxes                         $       1,138  $      1,087      5%
                                   ----------------------------

 Interest, net,  as reported       $         150  $        180
   Add:  Reduction in interest
    expense related to the
    favorable resolution of tax
    contingency (3)                           21             -
                                   ----------------------------
Adjusted Interest, net             $         171  $        180
                                   ----------------------------

Adjusted Earnings before taxes     $         967  $        907      7%
                                   ----------------------------

Taxes on earnings, as reported     $         246  $        308
  Deduct:  Tax impact of change in
   inventory accounting method (1)            (5)            -
  Deduct:  Tax impact had all
   stock-based awards been expensed
   under SFAS 123R (2)                         -           (17)
  Add:  Adjustment to tax expense
   related to the favorable
   resolution of tax contingency
   (3)                                        39             -
  Deduct:  Incremental tax recorded
   for earnings to be repatriated
   under the American Jobs Creation
   Act (4)                                   (13)            -
  Add:  Adjustment to tax expense
   related to the use of foreign
   tax credits (5)                            14             -
                                   ----------------------------
Adjusted Taxes on earnings         $         281  $        291
                                   ----------------------------
Adjusted effective income tax rate          29.1%         32.1%

Earnings from continuing
 operations, as reported           $         755  $        644
  Deduct:  Impact of change in
   inventory accounting method (1)            (8)            -
  Deduct:  Impact had all stock-
   based awards been expensed under
   SFAS 123R (2)                               -           (28)
  Deduct:  Net adjustment to taxes
   and interest  expense related to
   the favorable resolution of  tax
   contingency (3)                           (60)            -
  Add:  Incremental tax recorded
   for earnings to be repatriated
   under the American Jobs Creation
   Act (4)                                    13             -
  Deduct:  Adjustment to tax
   expense related to the use of
   foreign tax credits (5)                   (14)            -
                                   ----------------------------
Adjusted Earnings from continuing
 operations                        $         686  $        616     11%
                                   ============================

Earnings from continuing operations
 per share, as reported            $        1.82  $       1.56
  Deduct:  Impact of change in
   inventory accounting method (1)         (0.02)            -
  Deduct:  Impact had all stock-
   based awards been expensed under
   SFAS 123R (2)                               -         (0.07)
  Deduct:  Net adjustment to taxes
   and interest expense related to
   the favorable resolution of tax
   contingency (3)                         (0.14)            -
  Add:  Incremental tax recorded
   for earnings to be repatriated
   under the American Jobs Creation
   Act (4)                                  0.03             -
  Deduct:  Adjustment to tax
   expense related to the use of
   foreign tax credits (5)                 (0.03)            -
                                   ----------------------------
Adjusted Earnings from continuing
 operations, per share             $        1.66  $       1.49     11%
                                   ============================





                                           Year-to-Date           %
                                   ----------------------------
                                   July 30, 2006  July 31, 2005 Change
                                   ---------------------------- ------

Earnings from discontinued
 operations, as reported           $          11  $         63

  Add:  Adjustments to tax expense
   due to the sale of the
   businesses and after-tax costs
   associated with the sale (6)               61             -
Deduct: After-tax impact had all
 stock-based awards been expensed
 under SFAS 123R (2)                           -            (1)
                                   ----------------------------
Adjusted Earnings from
 discontinued operations           $          72  $         62     16%
                                   ============================

Earnings from discontinued
 operations per share, as reported $        0.03  $       0.15
  Add:  Adjustments to tax expense
   due to the sale of the
   businesses and after-tax costs
   associated with the sale (6)             0.15             -
                                   ----------------------------
Adjusted Earnings from
 discontinued operations per
 share *                           $        0.17  $       0.15     13%
                                   ============================

The adjusted net earnings and net earnings per share after
factoring in all items are as follows:

                                           Year-to-Date           %
                                   ----------------------------
                                   July 30, 2006  July 31, 2005 Change
                                   ---------------------------- ------

 Net earnings, as reported         $         766  $        707

 Adjustments                                  (8)          (29)
                                   ----------------------------

 Adjusted Net earnings             $         758  $        678     12%
                                   ============================

 Net earnings per share, as
  reported                         $        1.85  $       1.71

 Adjustments                               (0.02)        (0.07)
                                   ----------------------------

 Adjusted Net earnings per share   $        1.83  $       1.64     12%
                                   ============================

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

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:

                                     July 30, 2006    July 31, 2005
                                     --------------   --------------

Current notes payable                $       1,097    $         451
Long-term debt                               2,116            2,542
                                     --------------   --------------
     Total debt                      $       3,213    $       2,993

Less:  Cash and cash equivalents              (657)             (40)
                                     --------------   --------------
     Net Debt                        $       2,556    $       2,953
                                     ==============   ==============
    CONTACT: Campbell Soup Company
             Jerry S. Buckley (Media)
             (856) 342-6007
                 or
             Leonard F. Griehs (Analysts)
             (856) 342-6428

    SOURCE: Campbell Soup Company