caret-down

Campbell Reports Second Quarter Earnings Per Share of $.57, Even With Year Ago Net Sales Increase 6 Percent; U.S. Condensed Soup Sales Rise 4 Percent

CAMDEN, N.J.–(BUSINESS WIRE)–Feb. 18, 2005–Campbell Soup
Company (NYSE:CPB) today reported diluted earnings per share for the
second quarter ended January 30, 2005 of $.57, even with the year-ago
quarter.

For the second quarter, net sales rose 6 percent to $2.2 billion,
reflecting the following factors:

    --  Volume and mix added 4 percent

    --  Price and sales allowances added 1 percent

    --  Increased promotional spending subtracted 1 percent

    --  Currency added 2 percent

Net earnings for the second quarter of fiscal 2005 were $235
million, even with a year earlier.

Diluted earnings per share for the first half of fiscal 2005 were
$1.13, up 5 percent versus $1.08 a year ago.

Net sales were $4.3 billion for the first half of fiscal 2005, an
increase of 8 percent compared with the year-ago period, reflecting
the following factors:

    --  Volume and mix added 6 percent

    --  Price and sales allowances added 1 percent

    --  Increased promotional spending subtracted 1 percent

    --  Currency added 2 percent

For the first half of fiscal 2005, the company reported net
earnings of $465 million versus $446 million a year earlier, an
increase of 4 percent.

Douglas R. Conant, Campbell’s President and Chief Executive
Officer, said, “At the halfway mark in the year, we are pleased with
our overall company performance. Our U.S. Soup business increased
sales 6 percent for the first half of fiscal 2005, with condensed,
ready-to-serve, and broth all experiencing growth. We are especially
pleased with the strong sales growth in condensed soup, which is up 7
percent for the first half, the best performance in many years. Our
continuing investment in product quality, new products and packaging,
improved marketing, and retail execution is driving this performance.
While the cost of these investments and materials inflation has
impacted our U.S. Soup profit margins, our recently announced price
increase, effective at the end of February, will help to improve the
profitability of U.S. Soup.”

Conant continued, “The balance of our portfolio has delivered
excellent performance for the first half. Particularly noteworthy have
been the outstanding top and bottom line performances of Pepperidge
Farm and Away From Home in the U.S. From an overall financial
perspective, we continue to strengthen our balance sheet with the
reduction of our debt, leveraging our strong cash flow generation.”

The company confirmed its fiscal 2005 guidance for earnings per
share to increase between 5 and 7 percent, excluding restructuring
charges, from the adjusted fiscal year 2004 base of $1.58.

    Summary of Fiscal 2005 Second Quarter Results By Segment

    U.S. Soup, Sauces and Beverages

Sales for U.S. Soup, Sauces and Beverages were $956 million, a 1
percent increase compared with a year ago. Operating earnings of $216
million were down 12 percent compared with the year-ago quarter, due
to increased trade promotion and advertising and higher materials
costs, partially offset by productivity savings and lower
administrative expenses. A breakdown of the change in sales follows:

    --  Volume and mix added 3 percent

    --  Increased promotional spending subtracted 2 percent

Soup sales for the quarter declined 1 percent, with condensed soup
sales up 4 percent, ready-to-serve soup sales down 9 percent, and
broth sales up 15 percent.

    Further details of sales results include the following:

    --  Both condensed eating and cooking soup sales rose in the
        quarter. Eating soup achieved solid sales growth in part due
        to the combination of successful merchandising and kids
        promotional marketing programs, as well as increased
        advertising. Condensed cooking soup sales grew behind strong
        holiday promotion performance and the introduction of three
        new Southwestern-style cooking soups. "Campbell's" condensed
        cooking and eating soups continue to benefit from the
        installation of gravity-feed shelving systems, which are now
        in more than 11,000 stores.

    --  Sales of ready-to-serve soups were adversely impacted in part
        by a shift between first and second quarter promotional
        spending and marketing programs, as well as the comparison to
        a very strong sales quarter a year ago. For the first half,
        sales of ready-to-serve soups have increased 3 percent.
        Performance of the convenience soup platform in the quarter
        was flat compared with a year earlier, with sales gains in
        ready-to-serve microwaveable bowls offset by a decline in
        "Campbell's Soup at Hand" sippable soup sales.

    Highlights of this segment's other businesses include:

    --  After a successful introduction in the first quarter,
        "Campbell's Chunky" chili continues to perform well in the
        marketplace. In January, "Campbell's Chunky" chili introduced
        two varieties in microwaveable bowls.

    --  "Campbell's SpaghettiOs" pasta sales increased significantly
        as the business continues to benefit from the conversion to
        the "Campbell's" brand supported by increased advertising.

    --  While the "Prego" pour-over business continued to achieve
        increased volume as category trends improve, overall sales
        declined in the quarter due to lower sales of "Prego" pasta
        bake products.

    --  Sales of "Pace" Mexican sauces increased in the quarter.

    --  "V8" vegetable juice and "Campbell's" tomato juice sales
        increased in the quarter, while sales of "V8 Splash" juice
        beverage declined.

For the first half of fiscal 2005, sales increased 5 percent to
$2.0 billion. Operating earnings decreased 4 percent to $491 million,
as the benefit of higher sales and productivity gains were more than
offset by increased trade promotion and advertising, and higher
materials costs.

Baking and Snacking

Sales for Baking and Snacking were $433 million, a 9 percent
increase compared with a year ago. Operating earnings increased 12
percent to $47 million compared with the year-ago quarter, as the
impact of pricing and higher volume was partially offset by increased
marketing and commodity cost inflation.

    A breakdown of the change in sales follows:

    --  Volume and mix added 5 percent

    --  Price and sales allowances added 4 percent

    --  Increased promotional spending subtracted 1 percent

    --  Currency added 1 percent

    Further details of sales results include the following:

    --  Pepperidge Farm experienced strong sales across all three of
        its business segments: bakery, cookies and crackers, and
        frozen.

    --  Sales of fresh bread and bakery products were up double
        digits. Top performers included "Pepperidge Farm" wheat and
        grain breads, as well as "Pepperidge Farm" Carb Style breads
        and rolls. Pepperidge Farm continued to successfully expand
        distribution of its lines of bagels and English muffins.

    --  "Pepperidge Farm" cookie sales rose on the strength of a
        successful holiday season, and the introduction of a new line
        of sugar-free cookies and four new varieties of soft-baked
        cookies. "Goldfish" snack cracker sales also increased.

    --  Increased marketing for three new varieties of "Pepperidge
        Farm" premium pot pies drove outstanding sales growth in the
        frozen segment.

    --  Arnott's sales rose, driven by currency, as well as volume and
        pricing gains in biscuits and salty snacks. Strong promotional
        activity and new product introductions also contributed to
        growth.

For the first half of fiscal 2005, sales increased 8 percent to
$882 million. Operating earnings increased 11 percent to $93 million,
driven by pricing and higher volume, partially offset by higher
materials costs.

International Soup and Sauces

Sales for International Soup and Sauces were $502 million, a 10
percent increase compared with the second quarter of fiscal 2004.
Operating earnings increased 8 percent to $70 million, primarily due
to the favorable impact of currency.

    A breakdown of the change in sales follows:

    --  Volume and mix added 4 percent

    --  Increased promotional spending subtracted 1 percent

    --  Currency added 7 percent

    Further details of sales results include the following:

    --  Sales were up in Europe, primarily due to currency. In
        addition, businesses in the U.K., France and Belgium delivered
        growth from volume and mix improvement.

    --  Sales in Asia Pacific were also up, driven by significant
        volume growth in the region.

    --  In Canada, sales increased due to the favorable impact of
        currency.

For the first half of fiscal 2005, sales increased 9 percent to
$918 million. Operating earnings increased 6 percent to $125 million,
primarily due to the favorable impact of currency.

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 grew 12 percent to $332 million compared with the same
period a year ago. Operating earnings of $72 million were up 14
percent versus the prior year, primarily due to the strong sales
growth. Last year’s operating earnings included a gain of $4 million
from an insurance settlement to cover the loss of two Godiva stores
destroyed during the events of September 11, 2001.

    A breakdown of the change in sales follows:

    --  Volume and mix added 7 percent

    --  Price and sales allowances added 4 percent

    --  Currency added 1 percent

    Further details include the following:

    --  Godiva Chocolatier sales rose on strong performance in all
        channels in North America -- retail, wholesale, and direct.
        Same-store sales were up double digits in North America, as
        the implementation of stronger merchandising, increased
        advertising and promotional activity, and new product
        introductions drove increased traffic to Godiva stores.

    --  Away From Home sales grew significantly due to the strong
        performance of refrigerated soups.

For the first half of fiscal 2005, sales increased 12 percent to
$564 million. Operating earnings increased 11 percent to $94 million,
consistent with strong sales growth.

Non-GAAP Financial Information

A reconciliation of the adjusted fiscal year 2004 earnings per
share to the reported earnings per share 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 February 18 at 10:00 a.m. Eastern Standard Time. U.S. participants
may access the call at 1-877-601-3546 and non-U.S. participants at
1-210-234-0002. 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 “Webcast” banner. A recording of the call will be
available approximately two hours after it is completed through
midnight February 25, 2005 at 1-866-393-0852 or 1-203-369-0428.

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, new product introductions, cost-saving
initiatives and quality improvement 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, which 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, which 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, which includes the soup, sauce and
beverage businesses outside of the United States, including Canada,
Europe, Mexico, Latin America, and the Asia Pacific region.

Other, which 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 soup, sauce, beverage, baking, biscuit, confectionery and
prepared food products. The Company is 135 years old, with over $7
billion in annual sales and a portfolio of more than 20 market-leading
brands. For more information on the company, visit Campbell’s website
on the Internet at www.campbellsoupcompany.com.


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


                                              THREE  MONTHS  ENDED
                                            --------------------------
                                              January       February
                                             30, 2005       1, 2004
                                            ------------  ------------

Net  sales                                  $     2,223   $     2,100
                                            ------------  ------------

Costs  and  expenses
    Cost of products sold                         1,321         1,212
    Marketing and selling expenses                  362           340
    Administrative expenses                         129           136
    Research and development expenses                24            21
    Other (income) / expenses                        (2)            2
                                            ------------  ------------
Total costs and expenses                          1,834         1,711
                                            ------------  ------------

Earnings before interest and taxes                  389           389
Interest, net                                        45            42
                                            ------------  ------------
Earnings before taxes                               344           347

Taxes on earnings                                   109           112
                                            ------------  ------------
Net earnings                                $       235   $       235
                                            ============  ============

Per share - basic
   Net earnings                             $       .57   $       .57
                                            ============  ============

   Dividends                                $       .17   $     .1575
                                            ============  ============

Weighted average shares outstanding - basic         409           411
                                            ============  ============


Per  share - assuming dilution
   Net earnings                             $       .57   $       .57
                                            ============  ============

Weighted average shares outstanding
  - assuming dilution                               414           412
                                            ============  ============


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


                                                SIX  MONTHS  ENDED
                                            --------------------------
                                              January       February
                                             30, 2005       1, 2004
                                            ------------  ------------

Net  sales                                  $     4,314   $     4,009
                                            ------------  ------------

Costs and expenses
    Cost of products sold                         2,566         2,320
    Marketing and selling expenses                  676           633
    Administrative expenses                         258           259
    Research and development expenses                44            42
    Other expenses                                    -            12
                                            ------------  ------------
Total costs and expenses                          3,544         3,266
                                            ------------  ------------

Earnings before interest and taxes                  770           743
Interest, net                                        89            85
                                            ------------  ------------
Earnings before taxes                               681           658

Taxes on earnings                                   216           212
                                            ------------  ------------
Net earnings                                $       465   $       446
                                            ============  ============

Per share - basic
   Net earnings                             $      1.14   $      1.08
                                            ============  ============

   Dividends                                $       .34   $      .315
                                            ============  ============

Weighted average shares outstanding - basic         409           411
                                            ============  ============


Per share - assuming dilution
   Net earnings                             $      1.13   $      1.08
                                            ============  ============

Weighted average shares outstanding
  - assuming dilution                               413           412
                                            ============  ============


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


                                           THREE MONTHS ENDED
                                           ------------------
                                           January   February  Percent
Sales                                      30, 2005  1, 2004   Change
-----                                      --------  --------  -------
Contributions:
   U.S. Soup, Sauces and
    Beverages                              $   956   $   950        1%
   Baking and Snacking                         433       397        9%
   International Soup and Sauces               502       457       10%
   Other                                       332       296       12%
                                           --------  --------
Total sales                                $ 2,223   $ 2,100        6%
                                           ========  ========

Earnings
--------
Contributions:
   U.S. Soup, Sauces and
    Beverages                              $   216   $   246      -12%
   Baking and Snacking                          47        42       12%
   International Soup and Sauces                70        65        8%
   Other                                        72        63       14%
                                           --------  --------
Total operating earnings                       405       416       -3%
Unallocated corporate expenses                 (16)      (27)
                                           --------  --------

Earnings before interest and
 taxes                                         389       389        0%
Interest, net                                  (45)      (42)
Taxes on earnings                             (109)     (112)
                                           --------  --------
Net earnings                               $   235   $   235        0%
                                           ========  ========

Net earnings per share -
 assuming dilution                         $   .57   $   .57        0%
                                           ========  ========


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


                                             SIX MONTHS ENDED
                                             -----------------
                                             January  February Percent
Sales                                        30, 2005 1, 2004  Change
-----                                        -------- -------- -------
Contributions:
   U.S. Soup, Sauces and
    Beverages                                $ 1,950  $ 1,850       5%
   Baking and Snacking                           882      813       8%
   International Soup and Sauces                 918      843       9%
   Other                                         564      503      12%
                                             -------- --------
Total sales                                  $ 4,314  $ 4,009       8%
                                             ======== ========

Earnings
--------
Contributions:
   U.S. Soup, Sauces and
    Beverages                                $   491  $   511      -4%
   Baking and Snacking                            93       84      11%
   International Soup and Sauces                 125      118       6%
   Other                                          94       85      11%
                                             -------- --------
Total operating earnings                         803      798       1%
Unallocated corporate expenses                   (33)     (55)
                                             -------- --------

Earnings before interest and
 taxes                                           770      743       4%
Interest, net                                    (89)     (85)
Taxes on earnings                               (216)    (212)
                                             -------- --------
Net earnings                                 $   465  $   446       4%
                                             ======== ========

Net earnings per share
 - assuming dilution                         $  1.13  $  1.08       5%
                                             ======== ========


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


                                                  January    February
                                                  30, 2005    1, 2004
                                                 ---------- ----------

Current assets                                   $   1,674  $   1,541

Plant assets, net                                    1,917      1,871

Intangible assets, net                               3,156      3,081

Other assets                                           327        303
                                                 ---------- ----------
     Total assets                                $   7,074  $   6,796
                                                 ========== ==========


Current liabilities                              $   2,219  $   2,502

Long-term debt                                       2,552      2,566

Nonpension postretirement benefits                     292        301

Other liabilities                                      672        559

Shareowners' equity                                  1,339        868
                                                 ---------- ----------

     Total liabilities and shareowners' equity   $   7,074  $   6,796
                                                 ========== ==========


Total debt                                       $   3,128  $   3,474
                                                 ========== ==========

Cash and cash equivalents                        $      51  $      41
                                                 ========== ==========

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. The “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 items include the following:

— Earnings per share (EPS), excluding restructuring related

costs and one-time items

The table below reconciles earnings per share, presented in
accordance with GAAP, to earnings per share excluding restructuring
related costs and other one-time items.


                                             Fiscal Year Ended
                                             -----------------
                                                  August
                                                  1, 2004
                                             -----------------

As reported earnings per share               $           1.57
Add: Restructuring related costs (1)                     0.05
Deduct: Gain on litigation settlement (2)               (0.02)
    Gain on sale of property (3)                        (0.02)
                                              ----------------

Earnings per share, excluding restructuring
 related costs and one-time items            $           1.58
                                              ================

(1) The costs relate to the worldwide cost savings initiatives and
    Australian distribution and logistics realignment announced on
    June 24, 2004.

(2) The gain relates to the settlement of a class-action lawsuit
    involving ingredient suppliers.

(3) The gain relates to the sale of an idle facility in California.

The company believes that earnings per share excluding certain
restructuring related costs and certain other transactions not
considered to be part of the ongoing business are a better indicator
of the true performance of the business. Consequently, the company
believes that investors may be able to better understand earnings if
these transactions are excluded from the results.


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

    SOURCE: Campbell Soup Company