caret-down

Campbell Reports Second Quarter Earnings Per Share of $.61; Net Sales Increase 3 Percent; U.S. Soup Sales Rise 7 Percent

CAMDEN, N.J.–(BUSINESS WIRE)–Feb. 17, 2006–Campbell Soup
Company (NYSE: CPB) today reported net earnings increased to $254
million in the second quarter ended January 29, 2006 from $235 million
in the prior year. Diluted earnings per share for the quarter were
$.61, compared with $.57 in the year-ago period. Beginning in fiscal
year 2006, the company adopted a new accounting standard (SFAS 123R)
that requires all stock-based compensation to be expensed. Had all
stock-based compensation been expensed in the year-ago quarter, net
earnings would have been $227 million and diluted earnings per share
would have been $.55. After factoring in this item, earnings per share
for the second quarter increased 11 percent.

For the second quarter, net sales rose 3 percent to $2,281
million, reflecting the following factors:

    --  Volume and mix added 1 percent

    --  Price and sales allowances added 4 percent

    --  Currency subtracted 2 percent

The tax rate for the second quarter of fiscal year 2006 was 29.4
percent versus 31.7 percent in the prior-year quarter. The lower rate
for the quarter was the result of the resolution of the 1996-1999
federal income tax audit.

Net sales were $4,391 million for the first half of fiscal year
2006, an increase of 2 percent compared with the year-ago period,
reflecting the following factors:

    --  Volume and mix subtracted 1 percent

    --  Price and sales allowances added 3 percent

For the first half of fiscal year 2006, the company reported net
earnings of $556 million versus $465 million a year earlier and
earnings per share of $1.34 versus $1.13 in the year-ago period.

The comparability of net earnings and earnings per share for the
first six months was impacted by the following items:

    --  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 impact of
        the settlement on net earnings was $60 million, or $.14 per
        share.

    --  During the first quarter, the company finalized its plan to
        repatriate earnings from non-U.S. subsidiaries under the
        provisions of the American Jobs Creation Act, and as a result,
        recorded incremental tax expense of $8 million, or $.02 per
        share.

    --  During the first quarter, 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 for the
        first six months of fiscal year 2006 was reflected as a $13
        million pre-tax gain. The impact on net earnings was $8
        million, or $.02 per share.

    --  For the first six months of the prior year, earnings would
        have been $14 million or $.03 per share lower, had all
        stock-based compensation been expensed.

After factoring in these items for the first six months, adjusted
net earnings would be $496 million compared to $451 million in the
prior year, and adjusted earnings per share would be $1.20 compared to
$1.09 in the prior year, an increase of 10 percent.

Cash flow from operations for the first half of fiscal year 2006
was $649 million versus $500 million in the year-ago period, an
increase of 30 percent. In addition, the company repurchased 4.2
million shares at a cost of $127 million in the first half of fiscal
year 2006 to offset the impact of dilution from shares issued under
stock compensation plans and as part of the strategic repurchase plan
announced in November 2005.

Douglas R. Conant, Campbell’s President and Chief Executive
Officer, said, “Our solid performance this quarter was consistent with
our expectations. Our top-line growth was driven by strong increases
across our U.S. soup business. Both our condensed portfolio and broth
delivered good growth, while our ready-to-serve soups showed
significant improvement following a weak first quarter.

“For the first six months, we are pleased with our earnings
performance. We continued to improve our profit margins through
pricing and productivity, which more than offset cost inflation, and
enabled us to drive strong earnings growth in a challenging
environment.”

Conant continued, “From a strategic perspective, we continue to
focus on long-term growth initiatives, including premium soups. One
example is ‘Campbell’s Select Gold Label’ soup in aseptic packaging,
which we introduced in the U.S. this year and is off to a promising
start. From an international perspective, we are not satisfied with
our business performance – especially in Europe, most notably the
U.K., where we face an increasingly challenging competitive
environment.”

Excluding the items previously noted that impact comparability,
the company confirmed its fiscal 2006 guidance for earnings per share
to increase between 5 and 7 percent from the adjusted fiscal year 2005
base of $1.64, which reflects the impact of expensing all stock-based
compensation.

    Summary of Fiscal 2006 Second Quarter Results By Segment

    U.S. Soup, Sauces and Beverages

Sales for U.S. Soup, Sauces and Beverages were $1,018 million, a 6
percent increase compared with a year ago. Operating earnings
increased to $242 million from $216 million in the year-ago quarter.
Prior year earnings would have been $1 million lower had all
stock-based compensation been expensed. Earnings increased due to
higher prices and improved productivity, partially offset by cost
inflation.

    A breakdown of the change in sales follows:

    --  Volume and mix subtracted 1 percent

    --  Price and sales allowances added 6 percent

    --  Decreased promotional spending added 1 percent

U.S. soup sales for the quarter increased 7 percent, with
condensed soup sales up 6 percent, ready-to-serve soup sales up 9
percent, and broth sales up 6 percent. For the first six months of
fiscal year 2006, U.S. soup sales were up 1 percent, with condensed
sales up 4 percent, ready-to-serve sales down 5 percent, and broth
sales up 8 percent.

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

    --  "Campbell's" condensed eating soups achieved solid sales
        growth in the quarter due to pricing, effective advertising,
        and continued growth of kid's varieties. "Campbell's"
        condensed cooking soup sales grew from pricing, strong sales
        performance throughout the important holiday season, and
        increased advertising. The condensed soup business continued
        to benefit from an increase in gravity-feed shelving systems,
        which are now installed in 14,700 stores compared to 11,000 at
        this time last year.

    --  Sales of ready-to-serve soups increased strongly in the second
        quarter, primarily due to pricing. "Campbell's Select" soup
        sales increased, driven by the introduction of
        restaurant-style "Campbell's Select Gold Label" soups.
        "Campbell's Chunky" soups also showed sales growth, benefiting
        from advertising and promotion linked to the NFL. Sales of
        ready-to-serve soups were adversely impacted by the
        discontinuation of "Campbell's Kitchen Classics" soups.

    --  The convenience soup platform achieved double digit growth
        with "Campbell's Chunky" and "Campbell's Select" soups in
        microwaveable bowls and "Campbell's Soup at Hand" sippable
        soups all performing well. The introduction of "Campbell's"
        Chicken Noodle, Tomato, and Vegetable soups in microwaveable
        bowls also added to sales growth.

    --  "Swanson" broth sales grew, driven by consumer preference for
        aseptically-packaged broth and strong holiday merchandising
        activity.

    Highlights of this segment's other businesses include:

    --  "V8" vegetable juice recorded a double-digit sales increase as
        the brand benefited from increased distribution in non-grocery
        channels and the growth of single-serve varieties. A new
        beverage, "V8 V-Fusion," a 100 percent juice beverage that
        provides a full serving of vegetables plus a full serving of
        fruit, was launched during the quarter and received strong
        trade acceptance.

    --  "Prego" pasta sauce sales increased due to pricing and
        improved marketing effectiveness.

    --  "Pace" Mexican sauce sales also increased.

    --  "Campbell's Chunky" chili sales declined due to difficult
        comparisons against the introductory marketing activity a year
        ago, although "Campbell's Chunky" chili in microwaveable bowls
        performed well.

For the first half of fiscal 2006, sales increased 2 percent to
$1,988 million. Operating earnings increased to $530 million from $491
million in the year-ago period. Earnings in the prior-year period
would have been $2 million lower had all stock-based compensation been
expensed. Earnings for the first half of this year included an $8
million benefit from a change in the method of accounting for
inventory. Earnings increased due to higher prices and productivity
gains, partially offset by inflation and lower volume.

Baking and Snacking

Sales for Baking and Snacking were $429 million, a 1 percent
decrease compared with a year ago. Operating earnings declined to $40
million from $47 million in the year-ago quarter. Prior-year earnings
would have been $2 million lower had all stock-based compensation been
expensed. Earnings were impacted by declines in the biscuit business
in Indonesia due to a more challenging economic environment, as well
as declines in the Snackfoods business in Australia due to a
significant increase in competitive activity.

    A breakdown of the change in sales follows:

    --  Volume and mix subtracted 1 percent

    --  Price and sales allowances added 2 percent

    --  Increased promotional spending subtracted 1 percent

    --  Currency subtracted 1 percent

    Further details of sales results include the following:

    --  Pepperidge Farm bakery sales grew in the quarter driven by
        whole grain breads, muffins, and bagels, as well as strong
        demand for stuffing during the holidays.

    --  Sales of Pepperidge Farm cookies and crackers increased in the
        quarter. Sales gains by "Pepperidge Farm Goldfish" snack
        crackers were partially offset by declines in "Milano" and
        Mini cookies. "Pepperidge Farm Whims," a line of poppable
        snacks introduced at the beginning of the fiscal year, has not
        performed up to expectations.

    --  Pepperidge Farm frozen bakery sales increased slightly, driven
        by pastries, garlic toast, and the introduction of new artisan
        breads.

    --  Arnott's sales declined, primarily due to currency and weak
        private label sales, which more than offset sales gains in the
        branded biscuit business.

For the first half of fiscal 2006, sales increased 1 percent to
$887 million. Operating earnings declined to $90 million from $93
million in the year-ago period. Earnings in the year-ago period would
have been $4 million lower had all stock-based compensation been
expensed. Earnings for the first half of this year included a $5
million benefit from a change in the method of accounting for
inventory. Earnings were impacted primarily due to declines in the
biscuit business in Indonesia.

International Soup and Sauces

Sales for International Soup and Sauces were $483 million, a 4
percent decline compared with the second quarter of fiscal 2005.
Operating earnings increased to $81 million from $70 million in the
year-ago quarter. Prior year earnings would have been $1 million lower
had all stock-based compensation been expensed. Earnings increased
primarily due to the strong market performance in Canada and lower
marketing spending in Europe, partially offset by currency.

    A breakdown of the change in sales follows:

    --  Volume and mix added 1 percent

    --  Currency subtracted 5 percent

    Further details of sales results include the following:

    --  Sales in Europe decreased, primarily due to currency. Higher
        volumes of aseptically packaged soup and instant dry soups in
        France and aseptically packaged soup in Belgium were offset by
        weakness in the U.K. business.

    --  In Canada, sales grew double digits, driven by strong
        performances in ready-to-serve soup, including "Campbell's
        Soup at Hand," which was introduced this fiscal year, and by
        the favorable impact of currency.

For the first half of fiscal 2006, sales decreased 2 percent to
$903 million. Operating earnings increased to $136 million from $125
million in the year-ago period. Earnings in the year-ago period would
have been $2 million lower had all stock-based compensation been
expensed. Earnings increased primarily due to the strong market
performance in Canada and lower marketing spending in Europe,
partially offset by the unfavorable 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 increased 6 percent to $351 million compared with the same
period a year ago. Operating earnings declined to $69 million from $72
million in the year-ago quarter. Prior-year earnings would have been
$2 million lower had all stock-based compensation been expensed. The
earnings decline was primarily due to higher expenses and the
unfavorable impact of currency at Godiva, which offset gains in the
Away From Home business.

    A breakdown of the change in sales follows:

    --  Volume and mix added 5 percent

    --  Price and sales allowances added 2 percent

    --  Currency subtracted 1 percent

    Further details include the following:

    --  Godiva Chocolatier sales rose as a result of strong retail and
        direct sales channel performance in North America.

    --  Away From Home sales grew significantly due to the continued
        growth of refrigerated soups sold in grocery deli departments
        and strong frozen soup sales to business and industry.

For the first half of fiscal 2006, sales increased 9 percent to
$613 million. Operating earnings increased to $95 million from $94
million in the year-ago period. Earnings in the year-ago period would
have been $3 million lower had all stock-based compensation been
expensed. Earnings increased primarily due to sales growth in the Away
From Home business, partially offset by increased expenses and the
unfavorable impact of currency at Godiva.

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 February 17 at 10:00 a.m. Eastern Standard Time. U.S. participants
may access the call at 1-888-455-9639 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 24, 2006 at 1-800-294-3091 or 1-402-220-9769.

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, pricing, new product introductions and
innovation, 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 simple meals, including soup, baked snacks,
vegetable-based beverages, and premium chocolate products.

Founded in 1869, the company has a portfolio of more than 20
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 (unaudited)
                 (millions, except per share amounts)


                                             THREE MONTHS ENDED
                                             ------------------
                                         January 29,     January 30,
                                            2006            2005
                                       ---------------  --------------

Net sales                              $         2,281  $       2,223
                                       ---------------  --------------

Costs and expenses
    Cost of products sold                        1,334          1,321
    Marketing and selling expenses                 364            362
    Administrative expenses                        156            129
    Research and development
     expenses                                       24             24
    Other income                                    -              (2)
                                       ---------------  --------------
Total costs and expenses                         1,878          1,834
                                       ---------------  --------------

Earnings before interest and taxes                 403            389
Interest, net                                       43             45
                                       ---------------  --------------
Earnings before taxes                              360            344

Taxes on earnings                                  106            109
                                       ---------------  --------------
Net earnings                           $           254  $         235
                                       ===============  ==============

Per share - basic
   Net earnings                        $           .62  $         .57
                                       ===============  ==============

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

Weighted average shares outstanding -
 basic                                             408            409
                                       ===============  ==============


Per share - assuming dilution
   Net earnings                        $           .61  $         .57
                                       ===============  ==============

Weighted average shares outstanding
  - assuming dilution                              414            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 $12 would have
been recognized. Net earnings would have been $227 and diluted
earnings per share would have been $.55. 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 - $7; and Research and
development - $1.




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


                                               SIX MONTHS ENDED
                                               ----------------
                                         January 29,     January 30,
                                            2006            2005
                                       ---------------  --------------

Net sales                              $        4,391   $       4,314
                                       ---------------  --------------

Costs and expenses
    Cost of products sold                       2,562           2,566
    Marketing and selling expenses                684             676
    Administrative expenses                       294             258
    Research and development expenses              48              44
    Other income                                   (1)              -
                                       ---------------  --------------
Total costs and expenses                        3,587           3,544
                                       ---------------  --------------

Earnings before interest and taxes                804             770
Interest, net                                      69              89
                                       ---------------  --------------
Earnings before taxes                             735             681

Taxes on earnings                                 179             216
                                       ---------------  --------------
Net earnings                           $          556   $         465
                                       ===============  ==============

Per share - basic
   Net earnings                        $         1.36   $        1.14
                                       ===============  ==============

   Dividends                           $          .36   $         .34
                                       ===============  ==============

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


Per share - assuming dilution
   Net earnings                        $         1.34   $        1.13
                                       ===============  ==============

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 $22 would have
been recognized. Net earnings would have been $451 and diluted
earnings per share would have been $1.09. The 2005 pre-tax
incremental compensation expense would have been recognized as
follows on the Consolidated Statements of Earnings: Cost of products
sold - $2; Marketing and selling - $6; Administrative - $12; and
Research and development - $2.

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 the first quarter of fiscal 2006, an incremental tax expense of $8
(or $.02 per share) was recorded related to repatriated earnings from
non-U.S. subsidiaries under the provision of the American Jobs
Creation Act.




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



                                        THREE MONTHS ENDED
                                        ------------------
                                     January 29,  January 30,  Percent
Sales                                   2006         2005      Change
-----                                -----------  -----------  -------
Contributions:
   U.S. Soup, Sauces and Beverages   $    1,018   $      956        6%
   Baking and Snacking                      429          433       -1%
   International Soup and Sauces            483          502       -4%
   Other                                    351          332        6%
                                     -----------  -----------
Total sales                          $    2,281   $    2,223        3%
                                     ===========  ===========





Earnings
--------
Contributions:
   U.S. Soup, Sauces and Beverages   $      242   $      216       12%
   Baking and Snacking                       40           47      -15%
   International Soup and Sauces             81           70       16%
   Other                                     69           72       -4%
                                     -----------  -----------
Total operating earnings                    432          405        7%
Unallocated corporate expenses              (29)         (16)
                                     -----------  -----------

Earnings before interest and taxes          403          389        4%
Interest, net                               (43)         (45)
Taxes on earnings                          (106)        (109)
                                     -----------  -----------
Net earnings                         $      254   $      235        8%
                                     ===========  ===========

Net earnings per share - assuming
 dilution                            $      .61   $      .57        7%
                                     ===========  ===========


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 $12 would have
been recognized. Net earnings would have been $227 and diluted
earnings per share would have been $.55. 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 - $2; and Unallocated
Corporate - $6.




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



                                        SIX  MONTHS  ENDED
                                        ------------------
                                     January 29,  January 30,  Percent
Sales                                   2006         2005      Change
-----                                -----------  -----------  -------
Contributions:
   U.S. Soup, Sauces and Beverages   $    1,988   $    1,950        2%
   Baking and Snacking                      887          882        1%
   International Soup and Sauces            903          918       -2%
   Other                                    613          564        9%
                                     -----------  -----------
Total sales                          $    4,391   $    4,314        2%
                                     ===========  ===========





Earnings
--------
Contributions:
   U.S. Soup, Sauces and Beverages   $      530   $      491        8%
   Baking and Snacking                       90           93       -3%
   International Soup and Sauces            136          125        9%
   Other                                     95           94        1%
                                     -----------  -----------
Total operating earnings                    851          803        6%
Unallocated corporate expenses              (47)         (33)
                                     -----------  -----------

Earnings before interest and taxes          804          770        4%
Interest, net                               (69)         (89)
Taxes on earnings                          (179)        (216)
                                     -----------  -----------
Net earnings                         $      556   $      465       20%
                                     ===========  ===========

Net earnings per share - assuming
 dilution                            $     1.34   $     1.13       19%
                                     ===========  ===========


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 $22 would have
been recognized. Net earnings would have been $451 and diluted
earnings per share would have been $1.09. The 2005 pre-tax
incremental compensation expense would have been recognized as
follows:  U.S. Soup, Sauces and Beverages - $2; Baking and Snacking -
$4; International Soup and Sauces - $2; Other - $3; and Unallocated
Corporate - $11.

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 the first quarter of fiscal 2006, an incremental tax expense of $8
(or $.02 per share) was recorded related to repatriated earnings from
non-U.S. subsidiaries under the provision of the American Jobs
Creation Act.




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



                                              January 29,  January 30,
                                                 2006         2005
                                              -----------  -----------

Current assets                                $    1,914   $    1,664

Plant assets, net                                  1,940        1,917

Intangible assets, net                             3,011        3,156

Other assets                                         281          327
                                              -----------  -----------

     Total assets                             $    7,146   $    7,064
                                              ===========  ===========


Current liabilities                           $    2,303   $    2,209

Long-term debt                                     2,219        2,552

Nonpension postretirement benefits                   277          292

Other liabilities                                    726          672

Shareowners' equity                                1,621        1,339
                                              -----------  -----------

     Total liabilities and shareowners'
      equity                                  $    7,146   $    7,064
                                              ===========  ===========


Total debt                                    $    2,906   $    3,128
                                              ===========  ===========

Cash and cash equivalents                     $      267   $       51
                                              ===========  ===========

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 and certain tax
matters 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 the first quarter of fiscal 2006, the company recorded
        incremental tax expense of $8 million associated with the
        repatriation of earnings under the American Jobs Creation Act.

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

                                          Second Quarter          %
                                    ---------------------------
                                    Jan. 29, 2006 Jan. 30, 2005 Change
                                    ------------- ------------- ------

Earnings before interest and taxes,
 as reported                        $        403  $        389
  Deduct: Impact had all stock-
   based awards been expensed under
   SFAS 123R (2)                               -           (12)
                                    ------------- -------------
Adjusted Earnings before interest
 and taxes                          $        403  $        377      7%
                                    ------------- -------------

Interest, net, as reported          $         43  $         45
                                    ------------- -------------

Adjusted Earnings before taxes      $        360  $        332      8%
                                    ------------- -------------

Taxes on earnings, as reported      $        106  $        109
  Deduct: Tax impact had all
   stock-based awards been expensed
   under SFAS 123R (2)                         -            (4)
                                    ------------- -------------
Adjusted Taxes on earnings          $        106  $        105
                                    ------------- -------------

Adjusted effective income tax rate          29.4%         31.6%

Net earnings, as reported           $        254  $        235
  Deduct: Impact had all stock-
   based awards been expensed under
   SFAS 123R (2)                               -            (8)
                                    ------------- -------------
Adjusted Net earnings               $        254  $        227     12%
                                    ============= =============

Earnings per share, as reported     $       0.61  $       0.57
  Deduct: Impact had all stock-
   based awards been expensed under
   SFAS 123R (2)                               -         (0.02)
                                    ------------- -------------

Adjusted Earnings per share         $       0.61  $       0.55     11%
                                    ============= =============



                                         Year-to-Date             %
                                  -----------------------------
                                  Jan. 29, 2006  Jan. 30, 2005  Change
                                  -------------- -------------- ------

Earnings before interest and
 taxes, as reported               $         804  $         770
  Deduct: Impact of change in
   inventory accounting method
   (1)                                      (13)             -
  Deduct: Impact had all stock-
   based awards been expensed
   under SFAS 123R (2)                        -            (22)
                                  -------------- --------------
Adjusted Earnings before interest
 and taxes                        $         791  $         748      6%
                                  -------------- --------------

Interest, net, as reported        $          69  $          89
   Add: Reduction in interest
    expense related to the
    favorable resolution of
    tax contingency (3)                      21              -
                                  -------------- --------------
Adjusted Interest, net            $          90  $          89
                                  -------------- --------------

Adjusted Earnings before taxes    $         701  $         659      6%
                                  -------------- --------------

Taxes on earnings, as reported    $         179  $         216
  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)               -             (8)
  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)                     (8)             -
                                  -------------- --------------
Adjusted Taxes on earnings        $         205  $         208
                                  -------------- --------------
Adjusted effective income tax
 rate                                      29.2%          31.6%

Net earnings, as reported         $         556  $         465
  Deduct: Impact of change in
   inventory accounting method
   (1)                                       (8)             -
  Deduct: Impact had all stock-
   based awards been expensed
   under SFAS 123R (2)                        -            (14)
  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)                           8              -
                                  -------------- --------------
Adjusted Net earnings             $         496  $         451     10%
                                  ============== ==============

Earnings per share, as reported   $        1.34  $        1.13
  Deduct: Impact of change in
   inventory accounting method
   (1)                                    (0.02)             -
  Deduct: Impact had all stock-
   based awards been expensed
   under SFAS 123R (2)                        -          (0.03)
  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)                        0.02              -
                                  -------------- --------------
Adjusted Earnings per share*      $        1.20  $        1.09     10%
                                  ============== ==============

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

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

    SOURCE: Campbell Soup Company