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Campbell Reports Second Quarter Earnings Per Share of $.57 on Strong Sales Growth Driven by U.S. Soup

CAMDEN, N.J.–(BUSINESS WIRE)–Feb. 23, 2004–Campbell Soup
Company (NYSE:CPB) today reported diluted earnings per share for the
second quarter ended February 1, 2004 of $.57 compared to $.56
recorded in the year-ago quarter.

For the second quarter, net sales rose 9 percent to $2.1 billion,
driven by the following:

    --  Volume and mix increased 3 percent

    --  Price added 2 percent

    --  Increased promotional spending subtracted 1 percent

    --  Currency added 5 percent

Net earnings for the second quarter of fiscal 2004 were $235
million versus $231 million a year earlier.

Diluted earnings per share for the first six months were $1.08, up
5 percent versus $1.03 a year ago, before the cumulative effect of
accounting change. In fiscal 2003, the company recognized a one-time
non-cash goodwill impairment charge of $31 million after taxes, or 8
cents per share, related to the adoption of SFAS No. 142.

Net sales were $4.0 billion for the first six months, an increase
of 11 percent compared with the year-ago period, reflecting the
following factors:

    --  Volume and mix increased 3 percent

    --  Price added 2 percent

    --  Currency added 5 percent

    --  Acquisitions contributed 1 percent

For the first half of fiscal 2004, the company reported net
earnings of $446 million versus $423 million a year earlier before the
cumulative effect of accounting change.

Douglas R. Conant, Campbell’s President and Chief Executive
Officer, said, “We again delivered solid financial performance in the
quarter. We are successfully executing our highest strategic priority
of revitalizing our U.S. soup business. We continue to generate
excellent growth in our ready-to-serve soups and we are encouraged by
the improved performance of our condensed soups. Across the broader
portfolio, we see many examples of strong marketplace performance,
including ‘V8’ beverages and ‘Pepperidge Farm’ in the U.S. and
‘Arnott’s’ in Australia.”

Conant added, “Our strategy to drive improved top-line growth
through investments in higher quality products and packaging,
convenience, and integrated marketing is clearly paying off. Looking
ahead, we will focus on continuing this top-line momentum, while
improving our margin structure.”

Consistent with earlier guidance, the company expects earnings per
share of approximately $1.58 for fiscal 2004. In fiscal 2003, the
company reported earnings per share of $1.52 before the cumulative
effect of accounting change. For the third quarter of 2004, the
company expects earnings per share to be approximately $.31.

A summary of second quarter and first half segment results
follows.

North America Soup and Away From Home

North America Soup and Away From Home sales increased 8 percent to
$894 million in the quarter compared to the year-ago period, driven by
strong volume and mix increases, offset by increased promotional
spending. Operating earnings of $220 million were up 5 percent. Sales
for the quarter break down as follows:

    --  Volume and mix increased 5 percent

    --  Price added 3 percent

    --  Increased promotional spending subtracted 2 percent

    --  Currency added 2 percent

    Further details include the following:

    --  Ready-to-serve soup sales increased 17 percent for the quarter
        on shipment growth of 17 percent. This strong performance was
        driven by significantly enhanced promotional activity behind
        "Campbell's Chunky" canned soups, as well as the continued
        positive impact of the "M'm! M'm! Good! To Go" convenience
        platform, which includes "Chunky" and "Select" microwaveable
        bowls and "Soup At Hand," a line of convenient sippable soups
        designed for out-of-home consumption.

    --  Condensed soup sales were even with a year ago as higher
        prices offset a 2 percent decline in shipments during the
        quarter. "Campbell's" Chicken Noodle soup achieved
        particularly strong shipment growth in the quarter, offset by
        declines in cooking soups.

    --  Broth sales declined 1 percent, as shipment growth of 1
        percent was more than offset by higher promotional spending.

For the first half of fiscal 2004, sales increased 8 percent to
$1.7 billion with currency contributing 2 percentage points of the
growth. Operating earnings increased 7 percent to $441 million,
compared to the year-ago period.

North America Sauces and Beverages

North America Sauces and Beverages sales rose 2 percent to $324
million in the quarter and operating earnings decreased 14 percent to
$72 million, due to higher costs of packaging and ingredients, quality
improvements and unfavorable product mix. Sales for the quarter break
down as follows:

    --  Volume and mix increased 5 percent

    --  Increased promotional spending subtracted 3 percent

    Further details include the following:

    --  Strong sales gains in beverages were generated by effective
        marketing programs and new product introductions.

    --  "Pace" Mexican sauce sales were solid, particularly around the
        Super Bowl.

    --  Sales of "Prego" pasta sauce declined slightly due in part to
        the continued softness in the pasta category.

For the first half of fiscal 2004, sales rose 4 percent to $651
million compared to the year-ago period. Operating earnings declined 7
percent to $150 million, due to higher costs of packaging and
ingredients, quality improvements and unfavorable product mix.

Biscuits and Confectionery

Biscuits and Confectionery sales increased 13 percent to $550
million in the quarter and operating earnings rose 3 percent to $90
million. Sales for the quarter break down as follows:

    --  Volume and mix increased 2 percent

    --  Price increases added 3 percent

    --  Increased promotional spending subtracted 1 percent

    --  Currency added 9 percent

Currency contributed 6 percentage points of the growth in
operating earnings during the quarter. In the year-ago period,
operating earnings were favorably impacted by an $8 million gain on
the sale of a biscuit plant in Australia.

    Further details include the following:

    --  Pepperidge Farm delivered strong sales growth in cookies,
        crackers, and bread, while frozen products declined. The
        cookie business grew behind the introduction of Minis, smaller
        versions of Pepperidge Farm's most popular cookies, and
        particularly strong sales during the holiday season. Bread
        sales increased due to distribution gains in the mass
        merchandise channel.

    --  Godiva Chocolatier's worldwide sales increased, behind
        continued strong growth in Asia. Same store sales trends in
        North America also improved in the quarter.

    --  Sales of "Arnott's" biscuits in Australia increased
        significantly in the quarter, driven by strong performance of
        "Shapes," Australia's #1 snack cracker, and chocolate
        varieties.

For the first half of fiscal 2004, sales rose 16 percent to $1.0
billion compared to the year-ago period, with currency contributing 8
percentage points of the growth. Operating earnings increased 5
percent, with currency contributing 8 percentage points of the growth.

International Soup and Sauces

International Soup and Sauces sales rose 14 percent to $332
million and operating earnings increased 15 percent to $39 million in
the quarter. Sales for the quarter break down as follows:

    --  Volume and mix decreased 2 percent

    --  Price added 1 percent

    --  Reduced promotional spending added 1 percent

    --  Currency added 15 percent

    --  Divestiture subtracted 1 percent

    Operating earnings growth was driven by favorable currency.

    Further details include the following:

    --  In Europe, branded sales grew for the second straight quarter
        led by strong performance in Germany and France, offsetting
        private label declines. In Germany, new single serve pouches
        of "Erasco" soups performed well. In France, "Liebig" aseptic
        soups had strong sales during the quarter.

    --  In Asia Pacific, sales growth was driven by soup, broth and
        "V8" beverages.

For the first half of fiscal 2004, sales increased 16 percent to
$618 million, compared to the year-ago period. Currency contributed 14
percentage points of the sales growth. Operating earnings increased 23
percent to $74 million compared to the year-ago period with currency
contributing 15 percentage points of the growth.

Conference Call

The company will host a conference call to discuss these results
on February 23, 2004 at 10:00 a.m. Eastern Standard Time. U.S.
participants may access the call at 1-800-857-5156 and non-U.S.
participants at 1-630-395-0021. 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 http://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 27, 2004 at 1-888-562-6139 or
1-402-280-9979.

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, and quality
improvements on sales and earnings. These forward-looking statements
rely on a number of assumptions and estimates which could be
inaccurate and which are subject to risks and uncertainties. Actual
results could vary materially from those anticipated or expressed in
any forward-looking statement made by the company. Please refer to the
company’s most recent Form 10-K and subsequent filings for a further
discussion of these risks and uncertainties. The company disclaims any
obligation or intent to update the forward-looking statements in order
to reflect events or circumstances after the date of this release.

About Campbell Soup Company

Campbell Soup Company is a global manufacturer and marketer of
high quality soup, sauce, beverage, biscuit, confectionery and
prepared food products. The Company is 135 years old, with nearly $7
billion in annual sales and a portfolio of more than 20 market-leading
brands. In North America, leading brands include “Campbell’s” soups,
“Swanson” broths, “Pepperidge Farm” cookies, crackers, breads and
frozen products, “V8” vegetable juices, “V8 Splash” juice beverages,
“Pace” Mexican sauces, “Prego” pasta sauces, and “Franco-American”
canned pastas and gravies. In Europe, leading brands include “Erasco”
soups in Germany and “Liebig” soups in France, and several dry soup
and sauce brands: “Batchelors,” “Oxo,” “Lesieur,” “Royco,” “Liebig,”
“Heisse Tasse,” “Bla Band,” “Erin,” and “McDonnells.” Additional
European brands include “Homepride” sauces and “Fray Bentos” canned
meats in the United Kingdom, and “Devos Lemmens” mayonnaise and cold
sauces in Belgium and France. In the Asia Pacific region, the company
markets “Arnott’s” biscuits, “Campbell’s” soups, and “Swanson” broths.
“Godiva” chocolates are sold around the world. The company is ably
supported by 25,000 full-time employees worldwide. 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
                                            --------------------------
                                             February       January
                                              1, 2004       26, 2003
                                            ------------  ------------

Net sales                                    $    2,100    $    1,918
                                            ------------  ------------

Costs and expenses
    Cost of products sold                         1,212         1,056
    Marketing and selling
     expenses                                       340           329
    Administrative expenses                         136           128
    Research and development
     expenses                                        21            21
    Other expenses                                    2            (1)
                                            ------------  ------------
Total costs and expenses                          1,711         1,533
                                            ------------  ------------

Earnings before interest and taxes                  389           385
    Interest, net                                    42            46
                                            ------------  ------------
Earnings before taxes                               347           339

Taxes on earnings                                   112           108
                                            ------------  ------------
Net earnings                                 $      235    $      231
                                            ============  ============

Per share - basic
   Net earnings                              $      .57    $      .56
                                            ============  ============

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

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


Per share - assuming dilution
   Net earnings                              $      .57    $      .56
                                            ============  ============

Weighted average shares outstanding
  - assuming dilution                               412           411
                                            ============  ============

Certain reclassifications were made to prior year financial
statements.


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

                                                 SIX MONTHS ENDED
                                            --------------------------
                                              February      January
                                              1, 2004       26, 2003
                                            ------------  ------------

Net sales                                    $    4,009    $    3,623
                                            ------------  ------------

Costs and expenses
    Cost of products sold                         2,320         2,027
    Marketing and selling
     expenses                                       633           603
    Administrative expenses                         259           236
    Research and development
     expenses                                        42            40
    Other expenses                                   12             2
                                            ------------  ------------
Total costs and expenses                          3,266         2,908
                                            ------------  ------------

Earnings before interest and taxes                  743           715
    Interest, net                                    85            91
                                            ------------  ------------
Earnings before taxes                               658           624

Taxes on earnings                                   212           201
                                            ------------  ------------
Earnings before cumulative
  effect of accounting change                       446           423
Cumulative effect of accounting change                -           (31)
                                            ------------  ------------
Net earnings                                 $      446    $      392
                                            ============  ============

Per share - basic
   Earnings before cumulative
     effect of accounting change             $     1.08    $     1.03
   Cumulative effect of accounting change             -          (.08)
                                            ------------  ------------
   Net earnings                              $     1.08    $      .95
                                            ============  ============

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

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

Per share - assuming dilution
   Earnings before cumulative
     effect of accounting change             $     1.08    $     1.03
   Cumulative effect of accounting change             -          (.08)
                                            ------------  ------------
   Net earnings                              $     1.08    $      .95
                                            ============  ============

Weighted average shares outstanding
  - assuming dilution                               412           411
                                            ============  ============

In connection with the adoption of Statement of Financial Accounting
Standards No. 142 "Goodwill and Other Intangible Assets," the company
recognized a non-cash charge of $31 (net of a $17 tax benefit) as a
cumulative effect of accounting change for the write-down of goodwill
of one business unit in the first quarter of fiscal 2003.

Certain reclassifications were made to prior year financial
statements.


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

                                           THREE MONTHS ENDED
                                           ------------------
                                           February  January   Percent
Sales                                      1, 2004   26, 2003  Change
-----                                      --------  --------  -------
Contributions:
   North America Soup and Away
    From Home                              $   894   $   824        8%
   North America Sauces and
    Beverages                                  324       318        2%
   Biscuits and Confectionery                  550       486       13%
   International Soup and
    Sauces                                     332       290       14%
                                           --------  --------
    Total  sales                           $ 2,100   $ 1,918        9%
                                           ========  ========

Earnings
--------
Contributions:
   North America Soup and Away
    From Home                              $   220   $   209        5%
   North America Sauces and
    Beverages                                   72        84      -14%
   Biscuits and Confectionery                   90        87        3%
   International Soup and
    Sauces                                      39        34       15%
                                           --------  --------
         Total operating earnings              421       414        2%
         Unallocated corporate expenses        (32)      (29)
                                           --------  --------

Earnings before interest and
 taxes                                         389       385        1%
Interest, net                                  (42)      (46)
Taxes on earnings                             (112)     (108)
                                           --------  --------
     Net earnings                          $   235   $   231        2%
                                           ========  ========

Net earnings per share -
 assuming dilution                         $   .57   $   .56        2%
                                           ========  ========


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

                                            SIX MONTHS ENDED
                                           ------------------
                                           February  January   Percent
Sales                                      1, 2004   26, 2003  Change
-----                                      --------  --------  -------
Contributions:
   North America Soup and Away
    From Home                              $ 1,699   $ 1,570        8%
   North America Sauces and
    Beverages                                  651       625        4%
   Biscuits and Confectionery                1,041       896       16%
   International Soup and
    Sauces                                     618       532       16%
                                           --------  --------
    Total sales                            $ 4,009   $ 3,623       11%
                                           ========  ========

Earnings
--------
Contributions:
   North America Soup and Away
    From Home                              $   441   $   414        7%
   North America Sauces and
    Beverages                                  150       161       -7%
   Biscuits and Confectionery                  136       129        5%
   International Soup and
    Sauces                                      74        60       23%
                                           --------  --------
         Total operating earnings              801       764        5%
         Unallocated corporate expenses        (58)      (49)
                                           --------  --------

Earnings before interest and
 taxes                                         743       715        4%
Interest, net                                  (85)      (91)
Taxes on earnings                             (212)     (201)
                                           --------  --------
     Earnings before cumulative
       effect of accounting
       change                                  446       423        5%
     Cumulative effect of
       accounting change                         -       (31)
                                           --------  --------
     Net earnings                          $   446   $   392       14%
                                           ========  ========

Net earnings per share before
 cumulative effect of
 accounting change
   - assuming dilution                     $  1.08   $  1.03        5%
                                           ========  ========

In connection with the adoption of SFAS No. 142, the company
recognized a non-cash charge of $31 (net of a $17 tax benefit), or
$.08 per share, as a cumulative effect of accounting change for the
write-down of goodwill of one business unit in the first quarter of
fiscal 2003.


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

                                                  February   January
                                                   1, 2004   26, 2003
                                                 ---------- ----------

Current assets                                   $   1,541  $   1,484

Plant assets, net                                    1,871      1,757

Intangible assets, net                               3,081      2,748

Other assets                                           303        298

                                                 ---------- ----------
     Total assets                                $   6,796  $   6,287
                                                 ========== ==========


Current liabilities                              $   2,502  $   3,034

Long-term debt                                       2,566      2,270

Nonpension postretirement benefits                     301        314

Other liabilities                                      559        430

Shareowners' equity                                    868        239
                                                 ---------- ----------

     Total liabilities and shareowners' equity   $   6,796  $   6,287
                                                 ========== ==========


Total debt                                       $   3,474  $   3,627
                                                 ========== ==========

Cash and cash equivalents                        $      41  $      37
                                                 ========== ==========
    CONTACT: Campbell Soup Company
             Jerry S. Buckley (Media), 856-342-6007
             Leonard F. Griehs (Analysts), 856-342-6428

    SOURCE: Campbell Soup Company