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Campbell Reports Third Quarter Earnings Per Share At $.23; Shipments of U.S. Soup Increased 2 Percent for the Quarter

CAMDEN, N.J.–(BUSINESS WIRE)–May 15, 2002–Campbell Soup Company
(NYSE:CPB) today reported diluted earnings per share for the third
quarter ended April 28, 2002, of $.23. Excluding the costs of the
previously announced Australian manufacturing reconfiguration, diluted
earnings per share were $.24, down 20 percent or $.06 from the
comparable period last year. This is consistent with the company’s
February 13, 2002 announcement that it expected diluted earnings per
share for the third quarter to be between $.21-$.24, excluding the
impact of the Australian reconfiguration.

Net sales in the quarter increased 8 percent to $1,371 million.
The following factors impacted sales growth: base volume and mix were
flat, price added 1 percentage point and the European dry soup and
sauces acquisition, completed in the fourth quarter of fiscal year
2001, added 7 percentage points.

For the quarter, wet soup shipments compared to one year ago were
up 2 percent in the U.S. and down 3 percent in international,
resulting in flat worldwide shipments. Net earnings for the quarter
were $96 million. Excluding the impact of the Australian
reconfiguration, net earnings for the quarter were $100 million, down
19 percent versus a year earlier as a result of planned increases in
infrastructure and marketing investments across major businesses. The
lower earnings were partially offset by favorable short-term interest
rates that drove lower interest expense despite higher debt levels
resulting from the European acquisition. Total marketing investment
for the quarter was up 5 percent before the impact of currency and the
European acquisition, and up 12 percent including the European
acquisition.

For the first nine months of fiscal year 2002, net sales increased
7 percent to $4,910 million. The following factors drove the increase:

  • Base volume and mix increased 2 percent.

  • Price added 1 percentage point.

  • Promotions subtracted 1 percentage point.

  • Currency exchange rates negatively impacted sales by 1
    percentage point.

  • The European acquisition added 6 percentage points.

For the first nine months, wet soup shipments compared to one year
ago were flat for the U.S. and up 2 percent in international,
resulting in a 1 percent worldwide increase. Net earnings for the
first nine months were $470 million. Excluding the impact of the
Australian reconfiguration, net earnings for the first nine months
were $480 million, down 20 percent versus a year earlier.

For the current fiscal year, the company is maintaining its
previous earnings estimate of approximately $1.30 per share, excluding
the impact of the Australian reconfiguration.

Douglas R. Conant, President and Chief Executive Officer, said,
“Our multi-year plan to put Campbell back on a sustainable growth
track is gaining traction as we continue to refine and focus our
consumer marketing, product quality and innovation strategies. We are
also continuing the required investments in infrastructure and people
that are essential to the success of our transformation plan.

“In U.S. soup, our highest strategic priority business,
ready-to-serve brands such as `Campbell’s Chunky’ and `Campbell’s
Select’ again delivered strong performances in the quarter. Although
the rate of decline in `Campbell’s’ condensed soups moderated, we
still have much more to accomplish with this business. As planned,
quality improvements across the entire condensed line will continue
during the next three soup seasons. The first phase of these
improvements is being accelerated so that enhanced condensed vegetable
varieties will be available during the upcoming soup season.”

Conant continued, “Beyond U.S. soup, the investments we have made
in key businesses such as Pepperidge Farm in the U.S. and Arnotts in
Australia are reflected in their strong results this quarter. In
addition, we continue to generate strong cash flow, which has helped
accelerate the reduction in debt resulting from the European
acquisition.”

The company reported:

  • Free cash flow for the first nine months was $717 million
    versus $831 million a year ago reflecting increased marketing
    and infrastructure investments, which were offset by continued
    solid improvements in working capital.

  • Debt of $3,594 million increased from $3,131 million a year
    ago, but was down from $4,049 million at the end of fiscal
    year 2001. The higher debt level compared to a year ago is a
    result of the European acquisition that closed in the fourth
    quarter of fiscal year 2001.

A summary of fiscal year 2002 third quarter results by segment
follows:

North America Soup and Away From Home

Sales for the quarter increased 1 percent to $516 million due to a
2 percent increase in U.S. soup shipments. Operating earnings were
$108 million, down 18 percent, resulting from the planned increases in
marketing and infrastructure investments.

For the quarter, shipments of condensed soup and “Swanson” broth
both decreased 3 percent, while shipments of ready-to-serve soup
increased 9 percent.

For the first nine months, shipments of condensed soup decreased 6
percent, shipments of ready-to-serve soup increased 9 percent and
shipments of “Swanson” broth increased 3 percent. Quality improvements
and new varieties in “Campbell’s Chunky” and “Campbell’s Select” soups
led the ready-to-serve increases.

For the quarter, shipments of eating soups increased 3 percent and
shipments of cooking soups decreased 3 percent.

For the first nine months, shipments of eating soups were flat and
shipments of cooking soups decreased 1 percent.

North America Sauces and Beverages

Sales for the quarter decreased 1 percent to $276 million.
Operating earnings decreased 22 percent to $56 million. The earnings
decline was primarily driven by lower volumes and infrastructure
investments.

  • Shipments of “Prego” Italian sauces were up slightly, due to
    the new “Prego” pasta bake sauce, a convenient product that
    does not require pasta to be pre-cooked. Performance of base
    “Prego” sauces was soft in a competitive market.

  • Shipments of “Pace” Mexican sauces continued to increase in
    response to advertising and consumer promotion.

  • Shipments of “Franco-American” canned pastas decreased
    significantly as a result of continued heavy competitive trade
    promotion programs.

  • Shipments of “V8” vegetable juice increased strongly,
    reflecting positive consumer response to continued television
    and print advertising. Shipments of “V8 Splash” juice
    beverages declined.

Biscuits and Confectionery

Biscuits and Confectionery sales for the quarter increased 5
percent to $357 million. Sales were up in all three businesses –
Pepperidge Farm, Godiva and Arnotts. Operating earnings increased 5
percent to $46 million, excluding the impact of the Australian
manufacturing reconfiguration.

Pepperidge Farm delivered solid sales performance across its
portfolio with increased shipments and share growth in cookies,
crackers and fresh and frozen breads. New products, including “Dessert
Bliss” cookies and “Goldfish” sandwich crackers, performed well, as
did “Milano” cookies. New varieties of “Farmhouse” breads and rolls
and new “Pepperidge Farm” bagels also delivered solid performance.
Total sales of “Goldfish” crackers were up. In addition, “Goldfish”
became the best-selling brand of cheese cracker for the first time at
retail in the most recent 12-week period.

Godiva Chocolatier’s sales increased slightly, driven by continued
global new store openings. Godiva’s same store sales and earnings
continued to be negatively impacted by the events of September 11,
which reduced sales at retail outlets such as airport duty-free stores
and resort-destination stores.

Arnotts in Australia reported increased sales driven by the new
premium “Emporio” biscuits and new rice-based snack products.

International Soup and Sauces

International Soup and Sauces sales for the quarter increased 59
percent to $222 million compared to $140 million a year ago. Operating
earnings increased 36 percent to $19 million compared to $14 million a
year ago. These results were driven by the European acquisition.
Excluding the impact of the European acquisition and currency, sales
decreased 3 percent and operating earnings declined significantly.
These results were driven by increases in marketing and infrastructure
investments to support long-term growth and by sales softness in the
United Kingdom business. The newly acquired European dry soup and
sauces business continues to meet earnings expectations.

Reporting Changes

The company adopted the Emerging Issues Task Force (EITF)
consensus on Issue No. 00-10 “Accounting for Shipping and Handling
Fees and Costs” in the fourth quarter of fiscal year 2001. In the
first quarter of fiscal year 2002, the company adopted EITF Issues No.
00-14 and 00-25, which address the measurement and income statement
classification of certain consumer and trade sales promotion expenses
such as coupon redemption costs, cooperative advertising programs and
in-store display incentives. As a result, the following
reclassifications were made to the third quarter and first nine months
fiscal year 2001 financial statements:

  • Net sales were reduced by $168 million and $567 million
    respectively.

  • Cost of products sold increased by $45 million and $150
    million respectively.

  • Selling, general and administrative expenses were reduced by
    $213 million and $717 million respectively.

Conference Call

The company will host a conference call to discuss these results
on May 15, 2002 at 10:00 a.m. Eastern Standard Time. U.S. participants
may access the call at 1-800-988-9454 and non-U.S. participants at
1-712-257-2276. Participants should call at least five minutes prior
to the starting time. The passcode is Campbell Soup Company. The
conference leader is Len Griehs. The call will also be broadcast live
over the Internet at http://www.campbellsoup.com and can be accessed
by clicking on the Webcast banner. A recording of the call will be
available approximately two hours after it is completed through
midnight May 20, 2002 at 1-800-873-5254 for U.S. callers or
1-402-220-4776 for non-U.S. participants.

Forward-Looking Statements

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

About Campbell Soup Company

Campbell Soup Company is a global manufacturer and marketer of
high quality soup, sauces, beverages, biscuits, confectionery and
prepared food products. The company owns a portfolio of more than 20
market-leading businesses each with more than $100 million in sales.
They include “Campbell’s” soups worldwide, “Erasco” soups in Germany
and “Liebig” soups in France, “Pepperidge Farm” cookies and crackers,
“V8” vegetable juices, “V8 Splash” juice beverages, “Pace” Mexican
sauces, “Prego” Italian sauces, “Franco-American” canned pastas and
gravies, “Swanson” broths, “Homepride” sauces in the United Kingdom,
“Arnott’s” biscuits in Australia and “Godiva” chocolates around the
world. The company also owns dry soup and sauce businesses in Europe
under the “Batchelors,” “Oxo,” “Lesieur,” “Royco,” “Liebig,” “Heisse
Tasse,” “Bla Band” and “McDonnells” brands. The company is ably
supported by approximately 24,000 employees worldwide. For more
information on the company, visit Campbell’s website on the Internet
at www.campbellsoup.com.

CONTACT: Elizabeth Bingham Douglass (Media)
856/342-3813
Leonard F. Griehs (Analysts)
856/342-6428

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


                                                THREE MONTHS ENDED
                                               --------------------
                                                 April      April
                                               28, 2002   29, 2001
                                              ---------   --------

Net sales                                       $1,371     $1,271
                                              ---------   --------

Costs and expenses
  Cost of products sold                            782        712
  Selling, general and
   administrative expenses                         399        322
                                              ---------   --------
Total costs and expenses                         1,181      1,034
                                              ---------   --------

Earnings before interest and taxes                 190        237
  Interest, net                                     44         52
                                              ---------   --------
Earnings before taxes                              146        185

Taxes on earnings                                   50         63
                                              ---------   --------

Net earnings                                    $   96     $  122
                                              =========   ========
Per share - basic
  Net earnings                                  $  .23     $  .30
                                              =========   ========

  Dividends                                     $.1575     $ .225
                                              =========   ========

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


Per share - assuming dilution
  Net earnings                                  $  .23     $  .30
                                              =========   ========

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


In the first quarter fiscal 2002 ended October 28, 2001, the company
adopted new accounting standards related to the recognition,
measurement and income statement classification of certain consumer
and trade promotional expenses, such as coupon redemption costs,
cooperative advertising programs and in-store display incentives. In
the fourth quarter of last year, the company adopted new guidance on
the classification of shipping and handling costs. As a result, the
following reclassifications were made to the three month period ended
April 29, 2001 statement of earnings: Net sales were reduced by $168;
Cost of products sold was increased by $45; and Selling, general and
administrative expenses were reduced by $213.





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


                                                NINE MONTHS ENDED
                                                -----------------
                                                April        April
                                              28, 2002     29, 2001
                                              --------     --------
Net sales                                      $4,910       $4,607
                                              --------     --------

Costs and expenses
  Cost of products sold                         2,757        2,486
  Selling, general and
   administrative expenses                      1,296        1,061
  Restructuring charge                              1            -
                                             --------     --------
Total costs and expenses                        4,054        3,547
                                             --------     --------

Earnings before interest and taxes                856        1,060
  Interest, net                                   142          153
                                             --------     --------
Earnings before taxes                             714          907

Taxes on earnings                                 244          310
                                             --------     --------

Net earnings                                   $  470       $  597
                                             ========     ========
Per share - basic
  Net earnings                                 $ 1.14       $ 1.44
                                             ========     ========

  Dividends                                    $.4725       $ .675
                                             ========     ========

Weighted average shares outstanding - basic       410          415
                                             ========     ========


Per share - assuming dilution
    Net earnings                               $ 1.14       $ 1.42
                                             ========     ========

Weighted average shares outstanding
    - assuming dilution                           411          420
                                             ========     ========


In the first quarter fiscal 2002 ended October 28, 2001, the company
adopted new accounting standards related to the recognition,
measurement and income statement classification of certain consumer
and trade promotional expenses, such as coupon redemption costs,
cooperative advertising programs and in-store display incentives. In
the fourth quarter of last year, the company adopted new guidance on
the classification of shipping and handling costs. As a result, the
following reclassifications were made to the nine month period ended
April 29, 2001 statement of earnings: Net sales were reduced by $567;
Cost of products sold was increased by $150; and Selling, general and
administrative expenses were reduced by $717.




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


                                THREE MONTHS ENDED
                                ------------------
                                  April      April   Percent
Sales                           28, 2002   29, 2001   Change
-----                           --------   --------  -------
Contributions:           
  North America Soup 
   and Away From Home             $  516      $  512     1%
  North America Sauces 
   and Beverages                     276         278    -1%
  Biscuits and Confectionery         357         341     5%
  International Soup and Sauces      222         140    59%
                                --------    --------
   Total  sales                   $1,371      $1,271     8%
                                ========    ========
                                                           Percent
                                                           Change
                                                           Excluding
                                                           Special
Earnings                                                   Charges (1)
--------                                                   -----------
Contributions:
  North America Soup
   and Away From Home              $ 108       $ 132   -18%      -18%
  North America Sauces
   and Beverages                      56          72   -22%      -22%
  Biscuits and Confectionery          40          43    -7%        5%
  International Soup and Sauces       19          14    36%       36%
                                --------    --------
 Total operating earnings            223         261   -15%      -13%
 Unallocated corporate expenses      (33)        (24)
                                --------    --------

Earnings before
 interest and taxes                  190         237   -20%      -18%
Interest, net                        (44)        (52)
Taxes on earnings                    (50)        (63)
                                --------    --------
Net  earnings                      $  96       $ 122   -21%      -19%
                                ========    ========

Net earnings per share
 - assuming dilution               $ .23       $ .30   -23%      -20%
                                ========    ========


In the first quarter fiscal 2002 ended October 28, 2001, the company
adopted new accounting standards related to the recognition,
measurement and income statement classification of certain consumer
and trade promotional expenses, such as coupon redemption costs,
cooperative advertising programs and in-store display incentives. In
the fourth quarter of last year, the company adopted new guidance on
the classification of shipping and handling costs. As a result, the
following reclassifications were made to the three month period ended
April 29, 2001 statement of earnings: Net sales were reduced by $168;
Cost of products sold was increased by $45; and Selling, general and
administrative expenses were reduced by $213.

(1) Percent change is calculated excluding the effects of the
    Australian manufacturing reconfiguration plan announced in fiscal
    2001.


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


                              NINE MONTHS ENDED
                              -----------------
                               April      April   Percent
Sales                        28, 2002   29, 2001   Change
-----                        --------   --------   ------
Contributions:
 North America Soup 
  and Away From Home          $ 2,134    $ 2,138      0%
 North America Sauces 
  and Beverages                   908        891      2%
 Biscuits and Confectionery     1,164      1,133      3%
 International Soup and Sauces    704        445     58%
                              -------    -------       
  Total  sales                $ 4,910    $ 4,607      7%
                              =======    =======       
                                                           Percent
                                                           Change
                                                           Excluding
                                                           Special
Earnings                                                   Charges (1)
--------                                                   ---------
Contributions:
 North America Soup 
  and Away From Home          $   553    $   684    -19%         -19%
 North America Sauces 
  and Beverages                   180        233    -23%         -23%
 Biscuits and Confectionery       150        177    -15%          -8%
 International Soup and Sauces     70         47     49%          49%
                              -------    -------    
Total operating earnings          953      1,141    -16%         -15%
Unallocated corporate expenses    (97)       (81)
                              -------    -------    

Earnings before interest 
 and taxes                        856      1,060    -19%         -18%
Interest, net                    (142)      (153)
Taxes on earnings                (244)      (310)
                              -------    -------    
Net earnings                  $   470    $   597    -21%         -20%
                              =======    =======    

Net earnings per share 
 - assuming dilution          $  1.14    $  1.42    -20%         -18%
                              =======    =======    

In the first quarter fiscal 2002 ended October 28, 2001, the company
adopted new accounting standards related to the recognition,
measurement and income statement classification of certain consumer
and trade promotional expenses, such as coupon redemption costs,
cooperative advertising programs and in-store display incentives. In
the fourth quarter of last year, the company adopted new guidance on
the classification of shipping and handling costs. As a result, the
following reclassifications were made to the nine month period ended
April 29, 2001 statement of earnings: Net sales were reduced by $567;
Cost of products sold was increased by $150; and Selling, general and
administrative expenses were reduced by $717.


(1) Percent change is calculated excluding the effects of the
    Australian manufacturing reconfiguration plan announced in fiscal
    2001.



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

                                                  April      April
                                                28, 2002   29, 2001
                                                --------   --------
Current  assets                                  $ 1,133    $ 1,030

Plant  assets,  net                                1,595      1,542

Intangible  assets,  net                           2,440      1,660

Other  assets                                        621        600
                                                --------   --------
   Total assets                                  $ 5,789    $ 4,832
                                                ========   ========


Current  liabilities                             $ 2,490    $ 2,026

Long-term  debt                                    2,430      2,239

Nonpension  postretirement  benefits                 326        342

Other  liabilities                                   463        444

Shareowners'  equity                                  80       (219)
                                                --------   --------
   Total liabilities and shareowners' equity     $ 5,789    $ 4,832
                                                ========   ========

Total debt                                       $ 3,594    $ 3,131
                                                ========   ========
Net debt                                         $ 3,567    $ 3,110
                                                ========   ========

–30–NR/ph* KMK/ph DM/ph SF/ph

CONTACT: Campbell Soup Company
Elizabeth Bingham Douglass (Media)
856/342-3813
or
Leonard F. Griehs (Analysts)
856/342-6428