caret-down

Campbell Reports Third Quarter Earnings Per Share of $.34, Which Includes a $.02 Non-Recurring Gain

CAMDEN, N.J.–(BUSINESS WIRE)–May 24, 2004–Campbell Soup Company
(NYSE: CPB) today reported diluted earnings per share for the third
quarter ended May 2, 2004 of $.34 compared to $.31 recorded in the
year-ago quarter. This result includes a non-recurring $.02 gain from
Campbell’s share of a settlement from a class action lawsuit involving
ingredient suppliers.

For the third quarter, net sales rose 4 percent to $1.7 billion,
reflecting the following factors:

    --  Volume and mix subtracted 1 percent

    --  Price added 1 percent

    --  Increased promotional spending subtracted 1 percent

    --  Currency added 5 percent

Net earnings for the third quarter of fiscal 2004 were $142
million versus $129 million a year earlier. This year’s third quarter
includes a $10 million after-tax gain from the settlement of the class
action lawsuit.

Diluted earnings per share for the first nine months were $1.43,
which includes the $.02 non-recurring gain, versus $1.34 a year ago,
before the cumulative effect of accounting change. In fiscal 2003, the
company recognized a one-time, non-cash goodwill impairment charge of
$31 million after taxes, or 8 cents per share, related to the adoption
of SFAS No. 142.

Net sales for the first nine months were $5.7 billion, an increase
of 9 percent compared with the year-ago period, reflecting the
following factors:

    --  Volume and mix added 2 percent

    --  Price added 2 percent

    --  Currency added 5 percent

Net earnings for the first nine months were $588 million compared
to $552 million in the year-ago period, before the cumulative effect
of the accounting change. Net earnings for the current year include a
$10 million after-tax gain from the settlement of the class action
lawsuit.

Douglas R. Conant, Campbell’s President and Chief Executive
Officer, commented, “Our earnings in the quarter were in line with our
projections, but we must address the decline in our operating margins.
We knew this quarter would be a difficult sales comparison for U.S.
Soup because we were lapping an extremely strong third quarter last
year and we are following a strong second quarter this year. In
addition, we continued our heavy investment in promotional activity to
be fully competitive in this category.”

Conant added, “Despite lower U.S. Soup sales in the third quarter,
the year-to-date performance of U.S. Soup demonstrates continued
progress. Our investments in higher quality products, convenient
packaging and integrated marketing are driving top-line growth. We
have delivered strong growth in ready-to-serve soup and broth while
improving the trend in condensed soup. Our convenience platform for
soup is gaining wider consumer acceptance. As we look toward the next
soup season, we are putting plans in place to continue to drive
top-line growth while also improving our bottom-line performance.”

The company expects earnings per share of approximately $1.60 for
fiscal 2004, which includes the one-time $.02 gain from the class
action settlement. In fiscal 2003, the company reported earnings per
share of $1.52 before the cumulative effect of accounting change. For
the fourth quarter of 2004, the company expects earnings per share to
be approximately $.17, compared to $.18 a year ago.

    A summary of third quarter and nine-month segment results follows.

    North America Soup and Away From Home

North America Soup and Away From Home sales were $578 million in
the quarter, down 4 percent compared to the year-ago period, driven by
lower volume and increased promotional spending. Sales for the quarter
break down as follows:

    --  Volume and mix subtracted 4 percent

    --  Price added 3 percent

    --  Increased promotional spending subtracted 4 percent

    --  Currency added 1 percent

    Further details of sales results include the following:

    --  U.S. ready-to-serve soup sales for the quarter declined 13
        percent on shipment declines of 9 percent. These results
        follow a strong first half and compare with a strong year-ago
        third quarter. Campbell's "Soup At Hand" convenience soups
        continue to perform well in the marketplace, as sales in the
        quarter nearly doubled versus year ago. For nine months,
        ready-to-serve sales rose 10 percent and shipments rose 7
        percent.

    --  U.S. condensed soup sales and shipments for the quarter
        declined 6 percent. For nine months, condensed sales declined
        2 percent and shipments declined 5 percent.

    --  U.S. broth sales for the quarter declined 7 percent while
        shipments grew 1 percent. For nine months, broth sales rose 8
        percent while shipments rose 6 percent.

    --  Installation of new gravity-feed shelving for condensed soup
        continues ahead of schedule, with nearly 5,000 units now
        installed in the U.S. By the beginning of the next soup
        season, the company anticipates approximately 8,000 units will
        be installed.

    --  Sales volume in Canada declined.

    --  Away From Home soup sales grew in the quarter, led by
        Stockpot. A new line of "V8" vegetarian soups and chili was
        introduced in the quarter and has been well received by
        foodservice operators.

For the first nine months of fiscal 2004, sales increased 5
percent to $2.3 billion with currency contributing 2 percentage points
of the growth.

For the quarter, operating earnings of $113 million were down 23
percent due to lower volume and higher promotional spending. For the
first nine months of fiscal 2004, operating earnings of $554 million
were down 1 percent, compared to the year-ago period. Product mix and
the cost of quality and packaging improvements, partially offset by
the favorable impact of currency, contributed to the decline in
operating earnings.

North America Sauces and Beverages

North America Sauces and Beverages sales rose 2 percent to $301
million in the quarter. In the breakdown of sales growth for the
quarter, volume and mix was flat and reduced promotional spending
added 2 percent.

    Further details of sales results include the following:

    --  Strong sales gains in beverages were achieved due to
        double-digit growth of "V8" vegetable juice and "Campbell's"
        tomato juice. "V8 Splash" beverages continued to experience
        sales weakness.

    --  "Pace" Mexican sauces delivered double-digit sales growth
        driven by broad strength in the business.

    --  Sales of "Prego" pasta sauces overcame softness in the pasta
        category and showed strong growth in the quarter.

    --  "Franco-American" pasta and gravies and "Swanson" poultry
        continued to decline.

For the first nine months of fiscal 2004, sales rose 3 percent to
$952 million, compared to the year-ago period.

For the quarter, operating earnings increased 12 percent to $66
million, due to improved product mix and lower administrative
expenses. For the first nine months of fiscal 2004, operating earnings
declined 2 percent to $216 million, due to higher marketing expenses.

Biscuits and Confectionery

Biscuits and Confectionery sales increased 11 percent to $481
million in the quarter. Sales for the quarter break down as follows:

    --  Volume and mix added 2 percent

    --  Price increases added 1 percent

    --  Increased promotional spending subtracted 1 percent

    --  Currency added 9 percent

    Further details of sales results include the following:

    --  Pepperidge Farm sales growth moderated during the quarter due
        to continued competitive pressure in cheese crackers. Solid
        gains in bakery and cookies were partially offset by a decline
        in frozen products. New transfat-free "Goldfish Crisps"
        crackers were introduced in the quarter. The entire line of
        "Goldfish" crackers is expected to be transfat-free by the end
        of the first quarter of fiscal 2005.

    --  Godiva Chocolatier's worldwide sales continued to show
        improvement behind growth in the North American, Pacific Rim
        and European markets. Strong sales were posted in the U.S.
        during the Valentine's Day and Easter holiday selling periods.

    --  "Arnott's" biscuits in Australia had a strong performance in
        the quarter. Sales gains were made due to good performance in
        the savory category and new chocolate product introductions.
        Snackfoods continues to face competitive pressures in the
        marketplace.

For the first nine months of fiscal 2004, sales were up 14 percent
to $1.5 billion, compared to the year-ago period, with currency
contributing 8 percentage points of the growth.

For the quarter, operating earnings were down 3 percent to $37
million. For the first nine months of fiscal 2004, operating earnings
increased 4 percent to $173 million. In both periods, results were
impacted by weakness in the Australian Snackfoods business, offsetting
the favorable impact of currency, which contributed 8 percentage
points to operating earnings growth in each period.

International Soup and Sauces

International Soup and Sauces sales were $307 million, up 13
percent compared to the year-ago quarter. Sales for the quarter break
down as follows:

    --  Volume and mix subtracted 2 percent

    --  Reduced promotional spending added 1 percent

    --  Currency added 14 percent

    Further details of sales results include the following:

    --  In Europe, branded sales grew for the third straight quarter
        led by strong performance in France and improved performance
        in the U.K. market. In France, "Liebig" soups achieved strong
        results compared to a weak performance a year ago. In the
        U.K., sales gains by "Cup-A-Soup," "OXO," and "Supernoodles"
        products were partially offset by continued declines in
        "Homepride" sauces. In Germany, sales volume declined for both
        branded and non-branded products.

    --  In Asia Pacific, strong Australian beverage and broth results
        helped drive overall sales growth.

For the first nine months of fiscal 2004, sales were $925 million,
up 15 percent compared to the year-ago period. Currency contributed 14
percentage points of the sales growth.

In the quarter, operating earnings rose 3 percent to $38 million.
Renewed advertising spending in Europe partially offset the favorable
impact of currency, which contributed 14 percentage points to
operating earnings growth during the quarter. For the first nine
months of fiscal 2004, operating earnings were $112 million, up 15
percent compared to the year-ago period, with currency accounting for
the earnings growth.

Conference Call

The company will host a conference call to discuss these results
on May 24, 2004 at 10:00 a.m. Eastern Standard Time. U.S. participants
may access the call at 1-800-857-9841 and non-U.S. participants at
1-773-756-4622. Participants should call at least five minutes prior
to the starting time. The passcode is Campbell Soup and the conference
leader is Len Griehs. The call will also be broadcast live over the
Internet at http://www.campbellsoupcompany.com and can be accessed by
clicking on the Webcast banner. A recording of the call will be
available approximately two hours after it is completed through
midnight May 28, 2004 at 1-866-436-9388 or 1-203-369-1037.

Forward-Looking Statements

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

About Campbell Soup Company

Campbell Soup Company is a global manufacturer and marketer of
high quality soup, sauce, beverage, biscuit, confectionery and
prepared food products. The Company is 135 years old, with nearly $7
billion in annual sales and a portfolio of more than 20 market-leading
brands. The company is ably supported by 25,000 full-time employees
worldwide. For more information on the company, visit Campbell’s
website on the Internet at www.campbellsoupcompany.com.



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

                                                THREE MONTHS ENDED
                                            --------------------------
                                               May 2,       April 27,
                                                2004          2003
                                            ------------  ------------

Net sales                                    $    1,667    $    1,600
                                            ------------  ------------

Costs and expenses
    Cost of products sold                           995           920
    Marketing and selling
     expenses                                       278           264
    Administrative expenses                         141           143
    Research and development
     expenses                                        23            23
    Other (income) / expenses                       (13)           15
                                            ------------  ------------
Total costs and expenses                          1,424         1,365
                                            ------------  ------------

Earnings before interest and taxes                  243           235
    Interest, net                                    40            45
                                            ------------  ------------
Earnings before taxes                               203           190

Taxes on earnings                                    61            61
                                            ------------  ------------
Net earnings                                 $      142    $      129
                                            ============  ============

Per share - basic
   Net earnings                              $      .35    $      .31
                                            ============  ============

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

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


Per share - assuming dilution
   Net earnings                              $      .34    $      .31
                                            ============  ============

Weighted average shares outstanding
  - assuming dilution                               413           411
                                            ============  ============

Certain reclassifications were made to prior year financial
statements.


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

                                                NINE MONTHS ENDED
                                            --------------------------
                                               May 2,      April 27,
                                                2004         2003
                                            ------------  ------------

Net sales                                    $    5,676    $    5,223
                                            ------------  ------------

Costs and expenses
    Cost of products sold                         3,315         2,947
    Marketing and selling
     expenses                                       911           867
    Administrative expenses                         400           379
    Research and development
     expenses                                        65            63
    Other (income) / expenses                        (1)           17
                                            ------------  ------------
Total costs and expenses                          4,690         4,273
                                            ------------  ------------

Earnings before interest and taxes                  986           950
    Interest, net                                   125           136
                                            ------------  ------------
Earnings before taxes                               861           814

Taxes on earnings                                   273           262
                                            ------------  ------------
Earnings before cumulative
  effect of accounting change                       588           552
Cumulative effect of accounting change                -           (31)
                                            ------------  ------------
Net earnings                                 $      588    $      521
                                            ============  ============

Per share - basic
   Earnings before cumulative
     effect of accounting change             $     1.43    $     1.34
   Cumulative effect of accounting change             -          (.08)
                                            ------------  ------------
   Net earnings                              $     1.43    $     1.26
                                            ============  ============

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

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


Per share - assuming dilution
   Earnings before cumulative
     effect of accounting change             $     1.43    $     1.34
   Cumulative effect of accounting change             -          (.08)
                                            ------------  ------------
   Net earnings                              $     1.43    $     1.26
                                            ============  ============

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

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

Certain reclassifications were made to prior year financial
statements.


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

                                           THREE MONTHS ENDED
                                           ------------------
                                            May 2,   April 27, Percent
Sales                                        2004      2003     Change
-----                                      --------  --------  -------
Contributions:
   North America Soup and Away
    From Home                              $   578   $   600       -4%
   North America Sauces and
    Beverages                                  301       295        2%
   Biscuits and Confectionery                  481       434       11%
   International Soup and
    Sauces                                     307       271       13%
                                           --------  --------
    Total sales                            $ 1,667   $ 1,600        4%
                                           ========  ========

Earnings
--------
Contributions:
   North America Soup and Away
    From Home                              $   113   $   147      -23%
   North America Sauces and
    Beverages                                   66        59       12%
   Biscuits and Confectionery                   37        38       -3%
   International Soup and
    Sauces                                      38        37        3%
                                           --------  --------
         Total operating earnings              254       281      -10%
         Unallocated corporate expenses        (11)      (46)
                                           --------  --------

Earnings before interest and
 taxes                                         243       235        3%
Interest, net                                  (40)      (45)
Taxes on earnings                              (61)      (61)
                                           --------  --------
     Net earnings                          $   142   $   129       10%
                                           ========  ========

Net earnings per share -
 assuming dilution                         $   .34   $   .31       10%
                                           ========  ========


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

                                          NINE MONTHS ENDED
                                          ------------------
                                           May 2,   April 27, Percent
Sales                                       2004      2003     Change
-----                                     --------  --------  -------
Contributions:
   North America Soup and Away
    From Home                             $ 2,277   $ 2,170        5%
   North America Sauces and
    Beverages                                 952       920        3%
   Biscuits and Confectionery               1,522     1,330       14%
   International Soup and
    Sauces                                    925       803       15%
                                          --------  --------
    Total  sales                          $ 5,676   $ 5,223        9%
                                          ========  ========


Earnings
--------
Contributions:
   North America Soup and Away
    From Home                             $   554   $   561       -1%
   North America Sauces and
    Beverages                                 216       220       -2%
   Biscuits and Confectionery                 173       167        4%
   International Soup and
    Sauces                                    112        97       15%
                                          --------  --------
         Total  operating  earnings         1,055     1,045        1%
         Unallocated  corporate  expenses     (69)      (95)
                                          --------  --------

Earnings before interest and
 taxes                                        986       950        4%
Interest, net                                (125)     (136)
Taxes on earnings                            (273)     (262)
                                          --------  --------
     Earnings before cumulative
      effect of accounting
      change                                  588       552        7%
     Cumulative effect of
       accounting change                        -       (31)
                                          --------  --------
     Net earnings                         $   588   $   521       13%
                                          ========  ========

Net earnings per share before
 cumulative effect of
 accounting change
 - assuming dilution                      $  1.43   $  1.34        7%
                                          ========  ========



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


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

                                                 May 2,    April 27,
                                                  2004       2003
                                               ---------- ----------

Current assets                                 $   1,340  $   1,270

Plant assets, net                                  1,834      1,770

Intangible assets, net                             2,996      2,781

Other assets                                         273        294
                                               ---------- ----------

     Total assets                              $   6,443  $   6,115
                                               ========== ==========


Current liabilities                            $   2,187  $   2,794

Long-term debt                                     2,543      2,273

Nonpension postretirement benefits                   301        310

Other liabilities                                    536        386

Shareowners' equity                                  876        352
                                               ---------- ----------

    Total liabilities and shareowners' equity  $   6,443  $   6,115
                                               ========== ==========


Total debt                                     $   3,312  $   3,534
                                               ========== ==========

Cash and cash equivalents                      $      28  $      27
                                               ========== ==========

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

    SOURCE: Campbell Soup Company