caret-down

Campbell Reports Third Quarter Earnings Per Share of $0.31; U.S. Wet Soup Shipments Rise 10 Percent; Worldwide Wet Soup Shipments Increase 9 Percent

CAMDEN, N.J.–(BUSINESS WIRE)–May 19, 2003–Campbell Soup Company
(NYSE:CPB) today reported diluted earnings per share for the third
quarter ended April 27, 2003 of $.31 compared to $.23 recorded in the
year-ago quarter. Earnings per share in the year-ago quarter included
amortization expense of $.03 per share, since eliminated under SFAS
No. 142, which the company adopted at the start of fiscal 2003, and
$.01 per share of costs related to the Australian manufacturing
reconfiguration.

For the third quarter, net sales rose 17 percent to $1.6 billion,
reflecting the following:

    --  Base volume and mix were up 6 percent;

    --  Price added 2 percent;

    --  Reduced promotional spending added 2 percent;

    --  Currency added 4 percent; and

    --  Acquisitions added 3 percent.

For the third quarter of fiscal 2003, U.S. wet soup shipments rose
10 percent. Outside of the U.S., wet soup shipments increased 8
percent, resulting in a 9 percent increase worldwide.

Net earnings were $129 million versus $96 million a year earlier.
Earnings for the year-ago quarter included amortization expense of $13
million, since eliminated under SFAS No. 142, and $4 million for costs
related to the Australian manufacturing reconfiguration.

For the nine months of fiscal year 2003, the company reported
diluted earnings per share, before the cumulative effect of the
accounting change, of $1.34 compared to $1.14 recorded in the same
period last year. Earnings per share in the year-ago period included
amortization expense of approximately $.10 per share, since eliminated
under SFAS No. 142, and approximately $.02 per share of costs related
to the Australian manufacturing reconfiguration.

Net sales for the nine months increased 6 percent to $5.2 billion
compared with the year-ago period, reflecting the following factors:

    --  Base volume and mix were up 1 percent;

    --  Price added 1 percent;

    --  Currency added 2 percent; and

    --  Acquisitions added 2 percent.

For the nine months, compared with the same period last year, wet
soup shipments rose 1 percent in the U.S. and 2 percent outside the
U.S., resulting in a 1 percent worldwide increase.

Net earnings for the nine-month period, before the cumulative
effect of the accounting change, were $552 million compared to $470
million in the year-ago period.

Net earnings for the year-ago period included amortization expense
of approximately $39 million, since eliminated under SFAS No. 142, and
costs of $10 million related to the Australian manufacturing
reconfiguration.

Douglas R. Conant, Campbell’s President and Chief Executive
Officer, said, “We are pleased with our performance this quarter,
particularly in our U.S. Soup business. It’s clear that the
investments we have made in improving the quality and convenience of
our products are beginning to have a meaningful impact on our results.
As we look to the fiscal 2004 soup season and the multiple initiatives
we have in place, we believe we’re well positioned to continue to
improve our top line performance.”

Based on the third quarter performance, the company now expects
earnings per share, before the cumulative effect of the accounting
change, to be in the range of $1.49 to $1.51 for fiscal year 2003,
versus previously issued guidance of $1.47. This compares to $1.28 per
share reported in fiscal 2002, which included amortization expense of
$.13 per share, since eliminated under SFAS No. 142, and costs of
approximately $.03 per share related to the Australian manufacturing
reconfiguration. For the fourth quarter of 2003, the company expects
earnings per share to be in the range of $.15 to $.17.

A summary of segment results for the third quarter and nine months
follows. For comparative purposes, prior year business results have
been adjusted to exclude the amortization eliminated under SFAS No.
142.

North America Soup and Away From Home

Sales of $600 million were up 16 percent in the quarter compared
to the year-ago period, driven by strong growth in soup shipments and
improved trade promotion productivity. Operating earnings of $147
million were up 32 percent, reflecting solid volume growth across the
portfolio and lower, more efficient marketing spending.

U.S. retail soup shipments were favorably impacted by a lower
retail inventory reduction compared with the year-ago quarter, and
positive consumer takeaway momentum driven by new items, quality
improvements and effective promotional programs during the Easter
holiday period. Further details include the following:

    --  Condensed soup shipments rose 2 percent, helped by the
        improved quality of "Campbell's" vegetable soups and steady
        growth of the Fun Favorites soups for kids.

    --  Ready-to-serve soup shipments rose 17 percent for the quarter,
        driven by growth in "Select" and "Chunky" soups and the
        introduction of "Soup at Hand," the new convenient sippable
        soup designed for out-of-home consumption.

    --  "Swanson" broth shipments rose 38 percent, due to the
        continuing successful marketing behind the company's cooking
        strategies and particularly successful holiday promotional
        activity.

    --  Campbell Canada reported strong volume growth compared to a
        weak year-ago quarter.

For the nine months, sales of $2.2 billion rose 2 percent and
operating earnings of $561 million were unchanged compared to the
year-ago period.

North America Sauces and Beverages

Sales of $295 million rose 7 percent and operating earnings of $59
million declined 3 percent compared to the year-ago quarter,
reflecting increased marketing behind new product introductions.
Further details include the following:

    --  "V8 Splash" Smoothies were launched successfully in January.

    --  "Pace" Mexican sauce shipments showed strong growth, driven by
        new marketing initiatives and product introductions.

    --  Shipments of "Prego" pasta sauces declined and
        "Franco-American" pasta rose slightly.

For the nine months, sales of $920 million rose 1 percent and
operating earnings of $220 million rose 13 percent compared to the
year-ago period. Operating earnings for the nine months of last year
included costs related to the introductory marketing behind “Prego”
pasta bake sauces.

Biscuits and Confectionery

Sales rose 22 percent to $434 million in the quarter and operating
earnings declined 10 percent to $38 million, driven primarily by
increased advertising and promotional spending. The sales increase
reflected base business growth of 6 percentage points, favorable
currency impact of 5 percentage points and an 11 percentage point
benefit from the acquisition of Snack Foods Limited in Australia,
which was completed in the first quarter. Operating earnings in fiscal
2002 included $6 million of costs related to the Australian
manufacturing reconfiguration. Fiscal 2003 operating earnings were
impacted by $5 million of transitional expenses related to the planned
closure of the Pepperidge Farm bakery in Norwalk, Connecticut. In the
first quarter of fiscal 2002, the company announced a $72 million
investment to build a new bakery in Bloomfield, Connecticut, which is
expected to be completed in the first quarter of fiscal 2004.

    Further details include the following:

    --  Pepperidge Farm sales grew across its entire portfolio of
        cookies, crackers, bread and frozen products, with "Goldfish"
        crackers and fresh bread delivering particularly strong
        growth.

    --  Godiva Chocolatier's worldwide sales increased, led by growth
        in Asia. Same store sales in North America remained weak.

    --  Arnotts showed strong volume growth.

For the nine months, sales of $1.3 billion rose 14 percent and
operating earnings of $167 million rose 6 percent, compared to the
year-ago period. The sales increase reflected base business growth of
4 percentage points, favorable currency impact of 3 percentage points
and a 7 percentage point benefit from the acquisition. Operating
earnings in fiscal 2002 included $14 million of costs related to the
Australian manufacturing reconfiguration. Fiscal 2003 operating
earnings included $1 million of costs related to the Australian
manufacturing reconfiguration and $5 million of transitional expenses
related to the closure of the Norwalk, Connecticut bakery.

International Soup and Sauces

International Soup and Sauces sales rose 22 percent to $271
million and operating earnings rose 42 percent to $37 million compared
to the year-ago period. The sales increase reflected base business
growth of 2 percentage points, a favorable currency impact of 17
percentage points and a 3 percentage point benefit from the
acquisition of Erin Foods in Ireland, which was completed in the first
quarter. The operating earnings increase was driven by improved gross
margin, reflecting good growth in the higher margin European dry soup
business, lower marketing spending and favorable currency translation.

For the nine months, sales of $803 million increased 14 percent
and operating earnings of $97 million increased 8 percent compared to
the year-ago period. The sales increase was attributable to a
favorable currency impact of 12 percentage points and a 2 percentage
point benefit from the Erin Foods acquisition. The increase in
operating earnings was driven by favorable currency translation rates.

Conference Call

The company will host a conference call to discuss these results
on May 19, 2003 at 10:00 a.m. Eastern Standard Time. U.S. participants
may access the call at 1-800-857-5018 and non-U.S. participants at
1-630-395-0020. 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.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 22, 2003 at 1-800-759-6899 or 1-402-220-0373.

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, sauces, beverage, 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” pasta 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 25,000 employees worldwide. For more
information on the company, visit Campbell’s website on the Internet
at www.campbellsoup.com.

CONTACT: Campbell Soup Company

         Michelle M. Davidson (Media)
         (856) 968-4390
         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
                                          27, 2003         28, 2002
                                       --------------   --------------
Net sales                                $     1,600 $     1,371
                                       --------------   --------------

Costs and expenses
    Cost of products sold                        920              782
    Selling, general and
      administrative expenses                    445              399
                                       --------------   --------------
Total costs and expenses                       1,365            1,181
                                       --------------   --------------

Earnings before interest and taxes               235              190
     Interest, net                                45               44
                                       --------------   --------------
Earnings before taxes                            190              146

Taxes on earnings                                 61               50
                                       --------------   --------------

Net earnings                             $       129 $        96
                                       ==============   ==============

Per share - basic
  Net earnings                           $       .31      $       .23
                                       ==============   ==============

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

Weighted average shares outstanding -
 basic                                           411              410
                                       ==============   ==============


Per share - assuming dilution
  Net earnings                           $       .31      $       .23
                                       ==============   ==============

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


In the first quarter of fiscal 2003, the company adopted Statement of
Financial Accounting Standards No. 142 "Goodwill and Other Intangible
Assets." In accordance with the standard, the company discontinued the
amortization of goodwill and indefinite-lived intangible assets. Net
earnings for the quarter ended April 28, 2002 would have been $109 or
$.27 per diluted share had the provisions of the standard been adopted
at the beginning of the prior year.


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


                                               NINE  MONTHS  ENDED
                                               -------------------
                                              April          April
                                             27, 2003       28, 2002
                                           ------------   ------------

Net  sales                                  $    5,223 $    4,910
                                           ------------   ------------

Costs and expenses
    Cost of products sold                        2,947          2,757
    Selling, general and
      administrative expenses                    1,326          1,296
    Restructuring charge                             -              1
                                           ------------   ------------
Total costs and expenses                         4,273          4,054
                                           ------------   ------------

Earnings before interest and taxes                 950            856
     Interest, net                                 136            142
                                           ------------   ------------
Earnings before taxes                              814            714

Taxes on earnings                                  262            244
                                           ------------   ------------
Earnings before cumulative
  effect of accounting change                      552            470
Cumulative effect of accounting change             (31)             -
                                           ------------   ------------
Net earnings                                $      521 $      470
                                           ============   ============

Per share - basic
   Earnings before cumulative
     effect of accounting change            $     1.34 $     1.14
   Cumulative effect of accounting change         (.08)             -
                                           ------------   ------------
   Net earnings                             $     1.26 $     1.14
                                           ============   ============

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

Weighted average shares outstanding - basic        411            410
                                           ============   ============


Per share - assuming dilution
   Earnings before cumulative
     effect of accounting change            $     1.34 $     1.14
   Cumulative effect of accounting change         (.08)             -
                                           ------------   ------------
   Net earnings                             $     1.26 $     1.14
                                           ============   ============

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


In the first quarter of fiscal 2003, the company adopted Statement of
Financial Accounting Standards No. 142 "Goodwill and Other Intangible
Assets." In accordance with the standard, the company discontinued the
amortization of goodwill and indefinite-lived intangible assets. Net
earnings for the nine months ended April 28, 2002 would have been $509
or $1.24 per diluted share had the provisions of the standard been
adopted at the beginning of the prior year.

In connection with the adoption of this new standard, the company also
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.


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


                                         THREE  MONTHS  ENDED
                                         --------------------
                                        April     April   Percent
Sales                                 27, 2003  28, 2002  Change
-----                                 --------  --------  -------
Contributions:
   North America Soup and Away
    From Home                           $  600 $  516     16%
   North America Sauces and
    Beverages                              295       276      7%
   Biscuits and Confectionery              434       357     22%
   International Soup and
    Sauces                                 271       222     22%
                                      --------- ---------
    Total sales                         $1,600 $1,371     17%
                                      ========= =========

Earnings
--------
Contributions:
   North America Soup and Away
    From Home                           $  147 $  111     32%
   North America Sauces and
    Beverages                               59        61     -3%
   Biscuits and Confectionery               38        42    -10%
   International Soup and
    Sauces                                  37        26     42%
                                      --------- ---------
Total operating earnings                   281       240     17%
Unallocated corporate expenses             (46)      (33)
                                      --------- ---------

Earnings before interest
 and taxes                                 235       207     14%
Interest, net                              (45)      (44)
Taxes on earnings                          (61)      (54)
                                      --------- ---------

     Net earnings                       $  129 $  109     18%
                                      ========= =========

Net earnings per share -
 assuming dilution                      $  .31    $  .27     15%
                                      ========= =========


Results for the period ended April 28, 2002 have been restated to
reflect the pro forma impact of SFAS No. 142. Amortization expense of
$17 ($13 after tax) has been eliminated from the prior period results.
As reported net earnings for the prior period were $96 or $.23 per
share.

Earnings contributions from Biscuits and Confectionery include the
effect of costs associated with the Australian manufacturing
reconfiguration plan. In the third quarter of fiscal 2002, costs were
$6 pre-tax ($4 after tax).


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

                                         NINE  MONTHS  ENDED
                                         -------------------
                                        April     April   Percent
Sales                                 27, 2003  28, 2002  Change
-----                                 --------  --------  -------
Contributions:
   North America Soup and Away
    From Home                           $2,170 $ 2,134      2%
   North America Sauces and
    Beverages                              920       908      1%
   Biscuits and Confectionery            1,330     1,164     14%
   International Soup and
    Sauces                                 803       704     14%
                                      --------- ---------
    Total sales                         $5,223 $ 4,910      6%
                                      ========= =========

Earnings
--------
Contributions:
   North America Soup and Away
    From Home                           $  561 $   561      0%
   North America Sauces and
    Beverages                              220       195     13%
   Biscuits and Confectionery              167       158      6%
   International Soup and
    Sauces                                  97        90      8%
                                      --------- ---------
Total operating earnings                 1,045     1,004      4%
Unallocated corporate expenses             (95)      (97)
                                      --------- ---------

Earnings before interest and
  taxes                                    950       907      5%
Interest, net                             (136)     (142)
Taxes on earnings                         (262)     (256)
                                      --------- ---------
     Earnings before cumulative
      effect of accounting
      change                               552       509      8%
     Cumulative effect of
      accounting change                    (31)        -
                                      --------- ---------
     Net earnings                       $  521 $   509      2%
                                      ========= =========

Net earnings per share before
 cumulative effect of
 accounting change
   - assuming dilution                  $ 1.34 $  1.24      8%
                                      ========= =========


Results for the period ended April 28, 2002 have been restated to
reflect the pro forma impact of SFAS No. 142. Amortization expense of
$51 ($39 after tax) has been eliminated from the prior period results.
As reported net earnings for the prior period were $470 or $1.14 per
share.

Earnings contributions from Biscuits and Confectionery include the
effect of costs associated with the Australian manufacturing
reconfiguration plan. In the nine month period ended April 27, 2003,
costs were both $1 pre- and after tax. In the nine month period ended
April 28, 2002, costs were $14 pre-tax ($10 after tax).


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

                                                   April      April
                                                  27, 2003   28, 2002
                                                 ---------- ----------

Current assets                                    $  1,270 $  1,115

Plant assets, net                                    1,770      1,595

Intangible assets, net                               2,781      2,440

Other assets                                           294        639

                                                 ---------- ----------
     Total assets                                 $  6,115 $  5,789
                                                 ========== ==========


Current liabilities                               $  2,794 $  2,490

Long-term debt                                       2,273      2,430

Nonpension postretirement benefits                     310        326

Other liabilities                                      386        463

Shareowners' equity                                    352         80
                                                 ---------- ----------

     Total liabilities and shareowners' equity    $  6,115 $  5,789
                                                 ========== ==========


Total debt                                        $  3,534 $  3,594
                                                 ========== ==========

Cash and cash equivalents                         $     27 $     27
                                                 ========== ==========


Certain reclassifications were made to prior year financial
statements.


    CONTACT: Campbell Soup Company
             Michelle M. Davidson (Media)
             (856) 968-4390
              or
             Leonard F. Griehs (Analysts)
             (856) 342-6428

    SOURCE: Campbell Soup Company