caret-down

Campbell Reports Third Quarter Results

    Earnings Per Share from Continuing Operations of $.55, Including
               $.10 from Items Impacting Comparability;

     EPS from Continuing Operations up 22 Percent, Excluding Items
                       Impacting Comparability;

                     Net Sales Increase 8 Percent;

                   U.S. Soup Sales Rise 10 Percent;

           Company Raises Full Year Forecast for EPS Growth

CAMDEN, N.J.–(BUSINESS WIRE)–May 21, 2007–Campbell Soup Company
(NYSE:CPB) today reported earnings from continuing operations
increased to $217 million in the third quarter ended April 29, 2007
from $146 million in the prior year. Earnings per share from
continuing operations for the quarter were $.55, compared with $.35 in
the year-ago period.

The current quarter’s earnings from continuing operations included
two items that impacted comparability. The prior period’s earnings per
share also required an adjustment for comparability. These items are
summarized below:

                                               Third Quarter
                                      --------------------------------
                                           2007             2006
                                      ---------------- ---------------
(millions, except per share amounts)  Earnings   EPS   Earnings  EPS
------------------------------------- -------- ------- -------- ------

Earnings from continuing operations   $   217  $ 0.55  $   146  $0.35
                                      ======== ======= ======== ======

Adjustment for the reversal of legal  $   (13) $(0.03) $     -  $   -
 reserves due to favorable results in
 litigation

Benefit from the settlement of a          (25)  (0.06)       -      -
 bilateral advanced pricing agreement
 (APA) between the U.S. and Canada
 related to royalties

Pro forma use of $620 million of            -       -        -   0.02
 U.K./Ireland sale proceeds to
 repurchase 17 million shares

                                      -------- ------- -------- ------
Adjusted earnings from continuing
 operations                           $   179  $ 0.45* $   146  $0.37
                                      ======== ======= ======== ======
* Does not add due to rounding.

Excluding the above-referenced items, third quarter earnings from
continuing operations were $179 million compared to $146 million, an
increase of 23 percent, and earnings per share in the third quarter
were $.45 compared to $.37, an increase of 22 percent.

For the third quarter, net sales rose 8 percent to $1.9 billion,
reflecting the following factors:

    --  Volume and mix added 5 percent

    --  Price and sales allowances added 2 percent

    --  Promotional spending subtracted 1 percent

    --  Currency added 2 percent

For the first nine months of fiscal year 2007, earnings from
continuing operations were $770 million versus $671 million a year
earlier. Earnings per share were $1.93 compared to $1.62 reported in
the year-ago period. The items impacting comparability are summarized
below:

                                                Nine Months
                                     ---------------------------------
                                          2007             2006
                                     ---------------- ----------------
(millions, except per share amounts) Earnings   EPS   Earnings   EPS
------------------------------------ -------- ------- -------- -------

Earnings from continuing operations  $   770  $ 1.93  $   671  $ 1.62
                                     ======== ======= ======== =======

Adjustment for the reversal of legal $   (13) $(0.03) $     -  $    -
 reserves due to favorable results
 in litigation

Benefit from the settlement of an        (25)  (0.06)       -       -
 APA between the U.S. and Canada

Gain on the sale of an idle              (14)  (0.04)       -       -
 Pepperidge Farm facility

Change in inventory accounting             -       -       (8)  (0.02)
 method from LIFO to average cost

Favorable resolution of a U.S. tax         -       -      (60)  (0.14)
 contingency related to transactions
 in government securities in prior
 periods

Tax expense on repatriation of             -       -        8    0.02
 earnings under the AJCA*

Pro forma use of $620 million of           -       -        -    0.06
 U.K./Ireland sale proceeds to
 repurchase 17 million shares

                                     -------- ------- -------- -------
Adjusted earnings from continuing
 operations                          $   718  $ 1.80  $   611  $ 1.54
                                     ======== ======= ======== =======
* American Jobs Creation Act

After factoring in these items, earnings from continuing
operations for the first nine months were $718 million compared to
$611 million, an increase of 18 percent, and earnings per share were
$1.80 compared to $1.54 a year ago, an increase of 17 percent.

A detailed reconciliation of the adjusted fiscal 2007 and 2006
financial information to the reported information is attached to this
release.

For the first nine months of fiscal 2007, net sales were $6.3
billion, an increase of 7 percent compared with the year-ago period,
reflecting the following factors:

    --  Volume and mix added 3 percent

    --  Price and sales allowances added 3 percent

    --  Currency added 1 percent

Douglas R. Conant, Campbell’s President and Chief Executive
Officer, said, “Campbell continues to deliver outstanding performance
this year, with good growth across our portfolio. Our U.S. soup
business was robust in the quarter and has performed well year to
date, with lower sodium soups continuing to exceed our expectations in
terms of consumer trial, repeat, and incrementality. Our U.S. beverage
business, led by ‘V8’ vegetable juice, delivered extraordinary results
and has been the company’s best-performing business this year, and
Pepperidge Farm also has continued its strong performance.”

Conant continued, “We are especially pleased that we achieved
these results during Campbell’s successful completion of the first
phase of our SAP installation in the U.S., with several customers
characterizing the implementation to date as seamless.”

Conant concluded, “Given our strong performance in the quarter, we
are increasing our forecasted fiscal 2007 adjusted EPS growth from
continuing operations to a range of 12 to 14 percent, from the
adjusted pro forma fiscal 2006 base of $1.73.”

    Other Third Quarter Highlights

    --  Gross margin increased to 41.4 percent from 40.9 percent in
        the prior year with higher selling prices and productivity
        gains more than offsetting cost inflation.

    --  Marketing and selling expenses were $336 million, an increase
        of 18 percent, primarily due to increased advertising in the
        U.S.

    --  The tax rate was 14.6 percent compared to 29.8 percent a year
        ago. Excluding the impact of the APA settlement and the
        reversal of legal reserves, the rate would have been 22.2
        percent. This adjusted quarterly tax rate reflects the
        reversal of income tax reserves which have been recognized in
        connection with the resolution of 2000 to 2004 U.S. federal
        income tax audits.

    Other First Nine Months of Fiscal 2007 Highlights

    --  Gross margin increased to 42.4 percent from 41.8 percent, due
        to higher selling prices and productivity gains, which more
        than offset cost inflation. The prior year's percentage
        includes a $13 million benefit, or 0.2 percentage points, from
        a change in the method of accounting for inventory.

    --  Marketing and selling expenses were $1.013 billion, an
        increase of $54 million, primarily due to increased
        advertising, higher selling expenses driven mainly by Godiva,
        and currency.

    --  The company repurchased 26 million shares for $974 million
        under three programs: the program utilizing proceeds from the
        divestiture of the U.K. and Ireland businesses; the three-year
        strategic share repurchase program of $600 million announced
        in November 2005; and the program to offset the impact of
        dilution from shares issued under stock compensation plans.

Summary of Fiscal 2007 Third Quarter and Nine Month Results by
Segment

U.S. Soup, Sauces and Beverages

Sales for U.S. Soup, Sauces and Beverages were $807 million in the
quarter, a 13 percent increase compared with a year ago. The change in
sales reflects the following factors:

    --  Volume and mix added 11 percent

    --  Price and sales allowances added 2 percent

Operating earnings were $182 million compared to $171 million in
the year-ago period. The increase in operating earnings was due to
higher volumes, partially offset by increased advertising expenses.

U.S. soup sales for the quarter increased 10 percent compared with
a year ago. Further details of sales results for the quarter include
the following:

    --  Sales of all U.S. soups benefited from significant increases
        in advertising and more effective advertising campaigns.

    --  Across the soup portfolio, "Campbell's" lower sodium soups had
        a positive impact on sales. Trial, repeat, and incrementality
        continued to exceed expectations.

    --  Sales of "Campbell's" condensed soups were up 4 percent, with
        solid gains in both eating and cooking varieties. The
        continued focus on casserole-based advertising drove sales of
        cooking soups. Condensed soups continued to benefit from the
        innovative gravity-feed shelving systems installed at
        approximately 16,000 retail locations.

    --  Sales of "Campbell's" ready-to-serve soups were up 17 percent,
        on gains in both "Campbell's Select" and "Campbell's Chunky"
        soups. Increased promotional activity and advertising spending
        fueled double-digit gains of "Campbell's Chunky" soups.

    --  "Swanson" broth sales were up 17 percent, due to higher levels
        of advertising and strong ongoing consumer demand for
        aseptically-packaged broth.

    --  Sales of "Campbell's" convenience soup platform, which
        includes soups in microwaveable bowls and cups, posted solid
        gains.

    Highlights of this segment's other businesses include:

    --  Beverage sales increased significantly, driven by gains of
        "V8" vegetable juice and "V8 V-Fusion" juice, as well as gains
        in "V8 Splash" juice drinks. The debut of the "Bop"
        advertising campaign, a fresh take on the classic "I Could
        Have Had a V8" campaign, helped drive strong results for "V8."

    --  Sales of "Prego" pasta sauces grew due to increased
        promotional activity, while sales of "Pace" Mexican sauces
        declined.

For the first nine months of fiscal 2007, U.S. Soup, Sauces, and
Beverages sales increased 7 percent to $2.887 billion, with gains in
beverages, sauces, and across all soup formats–condensed,
ready-to-serve, and broth.

    A breakdown of the change in sales follows:

    --  Volume and mix added 4 percent

    --  Price and sales allowances added 3 percent

    For the nine months, soup sales increased 6 percent.

    --  Sales of condensed soup increased 4 percent

    --  Ready-to-serve soup sales increased 7 percent

    --  Broth sales increased 12 percent

Operating earnings were $778 million compared to $701 million in
the year-ago period. Earnings for the first nine months of fiscal 2006
included an $8 million benefit from a change in the method of
accounting for inventory. The increase in operating earnings was
driven by higher selling prices, increased volume, and productivity
gains, which were partially offset by cost inflation.

Baking and Snacking

Sales for Baking and Snacking were $441 million in the quarter, up
5 percent compared with a year ago. A breakdown of the change in sales
follows:

    --  Volume and mix added 1 percent

    --  Price and sales allowances added 2 percent

    --  Promotional spending subtracted 1 percent

    --  Currency added 3 percent

Operating earnings were $46 million compared with $35 million in
the year-ago quarter. The increase in operating earnings was driven by
double-digit gains at Pepperidge Farm and gains at Arnott’s.

    Further details of sales results include the following:

    --  Sales of "Pepperidge Farm" cookies and crackers increased,
        driven by another quarter of double-digit growth of "Goldfish"
        crackers. "Goldfish" crackers continued to benefit from strong
        sales of 100-calorie packs and expanded distribution of
        single-serve packages, along with higher levels of
        advertising. Gains in "Goldfish" crackers were partially
        offset by declines in cookies.

    --  Pepperidge Farm bakery sales grew in the quarter mainly driven
        by ongoing consumer demand for whole grain breads, as well as
        the continued growth of sandwich rolls.

    --  Arnott's sales increased due to currency. Excluding currency,
        sales decreased as Arnott's faced a challenging competitive
        environment.

For the first nine months of fiscal 2007, sales increased 5
percent to $1.379 billion. Operating earnings increased to $191
million compared to $125 million in the year-ago period. Earnings for
the first nine months of fiscal 2006 included a $5 million benefit
from a change in the method of accounting for inventory, while
earnings for the first nine months of fiscal 2007 included a $23
million gain from the sale of an idle Pepperidge Farm facility.
Operating earnings results were driven by double-digit gains at
Pepperidge Farm and gains at Arnott’s.

International Soup and Sauces

Sales for International Soup and Sauces were $340 million in the
quarter, up 6 percent compared with a year ago.

    A breakdown of the change in sales follows:

    --  Volume and mix added 1 percent

    --  Price and sales allowances added 2 percent

    --  Promotional spending subtracted 2 percent

    --  Currency added 5 percent

Operating earnings were $43 million, flat with the year-ago
period. Operating earnings performance was driven by currency, offset
by declines in the Canadian business.

Sales increased in Europe due to currency, gains from the launch
of new flavor varieties of wet soup in France, and increased condiment
sales.

For the first nine months of fiscal 2007, sales increased 10
percent to $1.090 billion. Operating earnings were $150 million
compared to $139 million in the prior-year period. Operating earnings
increased due to currency and gains in Canada and Mexico, partially
offset by higher expenses to establish Campbell’s businesses in Russia
and China, and lower earnings in Europe due to increased spending to
support new products.

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 were $280 million in the quarter, up 3 percent compared with
the same period a year ago.

    A breakdown of the change in sales follows:

    --  Volume and mix added 2 percent

    --  Price and sales allowances added 2 percent

    --  Increased promotional spending subtracted 1 percent

Operating earnings were $23 million compared to $27 million in the
same period a year ago. Operating earnings performance was driven by
declines at Godiva due to increased marketing expenses to support new
products in Asia and North America.

    Further details include the following:

    --  Godiva Chocolatier sales increased, driven mainly by
        double-digit gains in Asia. North American sales rose
        slightly, with internet sales increasing double digits and
        same-store sales up slightly. A winter storm in the Northeast
        adversely impacted sales on Valentine's Day, which is
        typically Godiva's single biggest sales day of the year.

    --  Away From Home sales grew modestly, driven by growth of frozen
        and canned soups, as well as beverages.

For the first nine months of fiscal 2007, sales increased 4
percent to $917 million. Operating earnings were $119 million compared
to $122 million in the prior-year period. Operating earnings were
driven by lower earnings at Godiva due to increased marketing expenses
to support new products.

Non-GAAP Financial Information

A reconciliation of the adjusted fiscal 2007 and 2006 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 May 21, 2007 at 10:00 a.m. Eastern Time. U.S. participants may
access the call at 1-866-206-5917 and non-U.S. participants at
1-703-639-1106. 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 May 25, 2007 at 1-888-266-2081 or 1-703-925-2533. The access
code is 452106.

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, share repurchase, new product
introductions and innovation, cost-saving initiatives, quality
improvements, and portfolio strategies, including divestitures, 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

Campbell Soup Company earnings results are reported for the
following segments:

U.S. Soup, Sauces and Beverages 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 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 includes the soup, sauce and
beverage businesses outside of the United States, including Canada,
Europe, Mexico, Latin America, and the Asia Pacific region.

Other 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 foods and simple meals, including soup, baked snacks,
vegetable-based beverages, and premium chocolate products, with annual
revenues in excess of $7.3 billion. Founded in 1869, the company has a
portfolio of 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
                                                   -------------------
                                                   April 29, April 30,
                                                     2007      2006
                                                   --------- ---------

Net sales                                          $  1,868  $  1,728
                                                   --------- ---------

Costs and expenses
   Cost of products sold                              1,094     1,021
   Marketing and selling expenses                       336       284
   Administrative expenses                              135       147
   Research and development expenses                     26        26
   Other expenses / (income)                             (4)        2
                                                   --------- ---------
Total costs and expenses                              1,587     1,480
                                                   --------- ---------

Earnings before interest and taxes                      281       248
Interest, net                                            27        40
                                                   --------- ---------
Earnings before taxes                                   254       208

Taxes on earnings                                        37        62
                                                   --------- ---------

Earnings from continuing operations                     217       146
Earnings from discontinued operations                     -        20
                                                   --------- ---------
Net earnings                                       $    217  $    166
                                                   ========= =========

Per share - basic
   Earnings from continuing operations             $    .57  $    .36
   Earnings from discontinued operations                  -       .05
                                                   --------- ---------
   Net earnings                                    $    .57  $    .41
                                                   ========= =========

   Dividends                                       $    .20  $    .18
                                                   ========= =========

Weighted average shares outstanding - basic             384       406
                                                   ========= =========


Per share - assuming dilution
   Earnings from continuing operations             $    .55  $    .35
   Earnings from discontinued operations                  -       .05
                                                   --------- ---------
   Net earnings                                    $    .55  $    .40
                                                   ========= =========

Weighted average shares outstanding - assuming
 dilution                                               395       413
                                                   ========= =========

In the third quarter of fiscal 2007, the company recorded a
pre-tax non-cash benefit of $20 ($13 after tax or $.03 per share) from
the reversal of legal reserves due to favorable results in litigation.
The benefit is included in Administrative expenses.

In the third quarter of fiscal 2007, the company recorded a tax
benefit of $22 resulting from the favorable settlement of a bilateral
advance pricing agreement between the United States and Canada related
to royalties. In connection with the settlement, the company reduced
net interest expense by $4 ($3 after tax). The aggregate impact on
earnings from continuing operations was $25, or $.06 per share.

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
                                                   -------------------
                                                   April 29, April 30,
                                                     2007      2006
                                                   --------- ---------

Net sales                                          $  6,273  $  5,889
                                                   --------- ---------

Costs and expenses
   Cost of products sold                              3,616     3,428
   Marketing and selling expenses                     1,013       959
   Administrative expenses                              425       415
   Research and development expenses                     77        74
   Other expenses / (income)                            (22)        1
                                                   --------- ---------
Total costs and expenses                              5,109     4,877
                                                   --------- ---------

Earnings before interest and taxes                    1,164     1,012
Interest, net                                           107       109
                                                   --------- ---------
Earnings before taxes                                 1,057       903

Taxes on earnings                                       287       232
                                                   --------- ---------

Earnings from continuing operations                     770       671
Earnings from discontinued operations                    23        51
                                                   --------- ---------
Net earnings                                       $    793  $    722
                                                   ========= =========

Per share - basic
   Earnings from continuing operations             $   1.99  $   1.64
   Earnings from discontinued operations                .06       .13
                                                   --------- ---------
   Net earnings                                    $   2.05  $   1.77
                                                   ========= =========

   Dividends                                       $    .60  $    .54
                                                   ========= =========

Weighted average shares outstanding - basic             387       408
                                                   ========= =========


Per share - assuming dilution
   Earnings from continuing operations             $   1.93  $   1.62
   Earnings from discontinued operations                .06       .12
                                                   --------- ---------
   Net earnings                                    $   1.99  $   1.74
                                                   ========= =========

Weighted average shares outstanding - assuming
 dilution                                               398       414
                                                   ========= =========

In the third quarter of fiscal 2007, the company recorded a
pre-tax non-cash benefit of $20 ($13 after tax or $.03 per share) from
the reversal of legal reserves due to favorable results in litigation.
The benefit is included in Administrative expenses.

In the third quarter of fiscal 2007, the company recorded a tax
benefit of $22 resulting from the favorable settlement of a bilateral
advance pricing agreement between the United States and Canada related
to royalties. In connection with the settlement, the company reduced
net interest expense by $4 ($3 after tax). The aggregate impact on
earnings from continuing operations was $25, or $.06 per share.

In the second quarter of fiscal 2007, the company recognized a
pre-tax gain of $23 ($14 after tax or $.04 per share) from the sale of
an idle manufacturing facility. The gain is included in Other expenses
/ (income).

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 earnings from continuing
operations was $60, or $.14 per share.

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

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
                                         -------------------
                                         April 29, April 30,  Percent
Sales                                      2007      2006     Change
---------------------------------------- --------- --------- ---------
Contributions:
  U.S. Soup, Sauces and Beverages        $    807  $    713        13%
  Baking and Snacking                         441       422         5%
  International Soup and Sauces               340       322         6%
  Other                                       280       271         3%
                                         --------- ---------
Total sales                              $  1,868  $  1,728         8%
                                         ========= =========





Earnings
----------------------------------------
Contributions:
  U.S. Soup, Sauces and Beverages        $    182  $    171         6%
  Baking and Snacking                          46        35        31%
  International Soup and Sauces                43        43         0%
  Other                                        23        27       -15%
                                         --------- ---------
Total operating earnings                      294       276         7%
Unallocated corporate expenses                (13)      (28)
                                         --------- ---------

Earnings before interest and taxes            281       248        13%
Interest, net                                 (27)      (40)
Taxes on earnings                             (37)      (62)
                                         --------- ---------

Earnings from continuing operations           217       146        49%
Earnings from discontinued operations           -        20
                                         --------- ---------
Net earnings                             $    217  $    166        31%
                                         ========= =========

Per share - assuming dilution
  Earnings from continuing operations    $    .55  $    .35        57%
  Earnings from discontinued operations         -       .05
                                         --------- ---------
Net earnings                             $    .55  $    .40
                                         ========= =========

In the third quarter of fiscal 2007, the company recorded a
pre-tax non-cash benefit of $20 ($13 after tax or $.03 per share) from
the reversal of legal reserves due to favorable results in litigation.
The benefit is included in Unallocated corporate expenses.

In the third quarter of fiscal 2007, the company recorded a tax
benefit of $22 resulting from the favorable settlement of a bilateral
advance pricing agreement between the United States and Canada related
to royalties. In connection with the settlement, the company reduced
net interest expense by $4 ($3 after tax). The aggregate impact on
earnings from continuing operations was $25, or $.06 per share.


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



                                          NINE MONTHS ENDED
                                         -------------------
                                         April 29, April 30,  Percent
Sales                                      2007      2006     Change
---------------------------------------- --------- --------- ---------
Contributions:
  U.S. Soup, Sauces and Beverages        $  2,887  $  2,701         7%
  Baking and Snacking                       1,379     1,309         5%
  International Soup and Sauces             1,090       995        10%
  Other                                       917       884         4%
                                         --------- ---------
Total sales                              $  6,273  $  5,889         7%
                                         ========= =========





Earnings
----------------------------------------
Contributions:
  U.S. Soup, Sauces and Beverages        $    778  $    701        11%
  Baking and Snacking                         191       125        53%
  International Soup and Sauces               150       139         8%
  Other                                       119       122        -2%
                                         --------- ---------
Total operating earnings                    1,238     1,087        14%
Unallocated corporate expenses                (74)      (75)
                                         --------- ---------

Earnings before interest and taxes          1,164     1,012        15%
Interest, net                                (107)     (109)
Taxes on earnings                            (287)     (232)
                                         --------- ---------

Earnings from continuing operations           770       671        15%
Earnings from discontinued operations          23        51
                                         --------- ---------
Net earnings                             $    793  $    722        10%
                                         ========= =========

Per share - assuming dilution
  Earnings from continuing operations    $   1.93  $   1.62        19%
  Earnings from discontinued operations       .06       .12
                                         --------- ---------
Net earnings                             $   1.99  $   1.74
                                         ========= =========

In the third quarter of fiscal 2007, the company recorded a
pre-tax non-cash benefit of $20 ($13 after tax or $.03 per share) from
the reversal of legal reserves due to favorable results in litigation.
The benefit is included in Unallocated corporate expenses.

In the third quarter of fiscal 2007, the company recorded a tax
benefit of $22 resulting from the favorable settlement of a bilateral
advance pricing agreement between the United States and Canada related
to royalties. In connection with the settlement, the company reduced
net interest expense by $4 ($3 after tax). The aggregate impact on
earnings from continuing operations was $25, or $.06 per share.

In the second quarter of fiscal 2007, the company recognized a
pre-tax gain of $23 ($14 after tax or $.04 per share) from the sale of
an idle manufacturing facility in the Baking and Snacking segment.

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 earnings from continuing
operations was $60, or $.14 per share.

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


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



                                                April 29,   April 30,
                                                  2007        2006
                                               ----------- -----------

Current assets                                 $    1,694  $    1,922

Plant assets, net                                   1,978       1,944

Intangible assets, net                              2,466       3,085

Other assets                                          616         301

                                               ----------- -----------
   Total assets                                $    6,754  $    7,252
                                               =========== ===========


Current liabilities                            $    1,964  $    2,626

Long-term debt                                      2,123       1,904

Nonpension postretirement benefits                    273         276

Other liabilities                                     777         666

Shareowners' equity                                 1,617       1,780

                                               ----------- -----------
   Total liabilities and shareowners' equity   $    6,754  $    7,252
                                               =========== ===========


Total debt                                     $    2,616  $    2,947
                                               =========== ===========

Cash and cash equivalents                      $      274  $      530
                                               =========== ===========

Net debt                                       $    2,342  $    2,417
                                               =========== ===========

        Reconciliation of GAAP and Non-GAAP Financial Measures
                  Third Quarter Ended April 29, 2007

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.

Net Debt

The company believes that net debt is a non-GAAP measure that
provides additional meaningful comparisons between current results and
prior period results and a useful perspective on the financial
condition of the business. Interest income earned on cash and cash
equivalents partially offsets interest expense on debt. Cash and cash
equivalents are available to repay outstanding debt upon maturity.

The table below summarizes information on total debt and cash and
cash equivalents:

               (millions)                April 29, 2007 April 30, 2006
                                         -------------- --------------

Current notes payable                    $         493  $       1,043
Long-term debt                                   2,123          1,904
                                         -------------- --------------
Total debt                               $       2,616  $       2,947

Less: Cash and cash equivalents                   (274)          (530)
                                         -------------- --------------
Net debt                                 $       2,342  $       2,417
                                         ============== ==============

Items Impacting Earnings From Continuing Operations

The company believes that financial information excluding a change
in accounting method and 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.

The following change in accounting method, certain tax matters and
other transactions impacted earnings from continuing operations:

(1) In the third quarter of fiscal 2007, the company recorded a
pre-tax non-cash benefit of $20 million ($13 million after tax or $.03
per share) from the reversal of legal reserves due to favorable
results in litigation.

(2) In the third quarter of fiscal 2007, the company recorded a
tax benefit of $22 million resulting from the settlement of a
bilateral advance pricing agreement (“APA”) between the United States
and Canada related to royalties. In addition, the company reduced net
interest expense by $4 million ($3 million after tax). The aggregate
impact on earnings from continuing operations was $25 million, or $.06
per share.

(3) In the second quarter of fiscal 2007, the company recorded a
pre-tax gain of $23 million ($14 million after tax or $.04 per share)
associated with the sale of an idle manufacturing facility.

(4) 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 or $.02 per
share) benefit from the change in accounting method.

(5) 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 earnings from continuing operations was $60 million, or
$.14 per share.

(6) In the first quarter of fiscal 2006, the company recorded
incremental tax expense of $8 million ($.02 per share) associated with
the repatriation of earnings under the American Jobs Creation Act
(“AJCA”).

The tables below reconcile financial information, presented in
accordance with GAAP, to financial information excluding the impact of
a change in accounting method, certain tax matters and other
transactions:

   (millions, except per share amounts)      Third Quarter
                                           -----------------
                                           Apr. 29, Apr. 30,
                                             2007     2006   % Change
                                           ----------------- ---------

Earnings before interest and taxes, as
 reported                                  $   281  $   248
Deduct: Reversal of legal reserves (1)         (20)       -
                                           -------- --------
Adjusted Earnings before interest and
 taxes                                     $   261  $   248         5%
                                           -------- --------

Interest, net, as reported                 $    27  $    40
Add: Reduction in interest expense related
 to the settlement the APA (2)                   4        -
                                           -------- --------
Adjusted Interest, net                     $    31  $    40
                                           -------- --------

Adjusted Earnings before taxes             $   230  $   208        11%
                                           -------- --------

Taxes on earnings, as reported             $    37  $    62
Deduct: Tax impact of reversal of legal
 reserves (1)                                   (7)       -
Deduct: Tax impact of reduction of
 interest expense related to settlement of
 the APA (2)                                    (1)       -
Add: Tax benefit from settlement of the
 APA (2)                                        22        -
                                           -------- --------
Adjusted Taxes on earnings                 $    51  $    62
                                           -------- --------
Adjusted effective income tax rate            22.2%    29.8%

Earnings from continuing operations, as
 reported                                  $   217  $   146
Deduct: Net adjustment related to reversal
 of legal reserves (1)                         (13)       -
Deduct: Net benefit from settlement of the
 APA (2)                                       (25)       -
                                           -------- --------
Adjusted Earnings from continuing
 operations                                $   179  $   146        23%
                                           ======== ========

Diluted earnings per share - continuing
 operations, as reported                   $  0.55  $  0.35
Deduct: Net adjustment related to reversal
 of legal reserves (1)                       (0.03)       -
Deduct: Net benefit from settlement of the
 APA (2)                                     (0.06)       -
                                           -------- --------
Adjusted Diluted earnings per share -
 continuing operations*                    $  0.45  $  0.35        29%
                                           ======== ========

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

   (millions, except per share amounts)      Year-to-Date
                                           -----------------
                                           Apr. 29, Apr. 30,
                                             2007     2006   % Change
                                           ----------------- ---------

Earnings before interest and taxes, as
 reported                                  $ 1,164  $ 1,012
Deduct: Reversal of legal reserves (1)         (20)       -
Deduct: Gain on sale of an idle
 manufacturing facility (3)                    (23)       -
Deduct: Impact of change in inventory
 accounting method (4)                           -      (13)
                                           -------- --------
Adjusted Earnings before interest and
 taxes                                     $ 1,121  $   999        12%
                                           -------- --------

Interest, net, as reported                 $   107  $   109
Add: Reduction in interest expense related
 to the settlement of the APA (2)                4        -
Add: Reduction in interest expense related
 to the favorable resolution of tax
 contingency (5)                                 -       21
                                           -------- --------
Adjusted Interest, net                     $   111  $   130
                                           -------- --------

Adjusted Earnings before taxes             $ 1,010  $   869        16%
                                           -------- --------

Taxes on earnings, as reported             $   287  $   232
Deduct: Tax impact of reversal of legal
 reserves (1)                                   (7)       -
Deduct: Tax impact of reduction of
 interest expense related to settlement of
 the APA (2)                                    (1)       -
Add: Tax benefit from settlement of the
 APA (2)                                        22        -
Deduct: Tax impact of gain on sale of an
 idle manufacturing facility (3)                (9)       -
Deduct: Tax impact of change in inventory
 accounting method (4)                           -       (5)
Add: Adjustment to tax expense related to
 the favorable resolution of tax
 contingency (5)                                 -       39
Deduct: Incremental tax expense associated
 with the repatriation of earnings under
 the AJCA (6)                                    -       (8)
                                           -------- --------
Adjusted Taxes on earnings                 $   292  $   258
                                           -------- --------
Adjusted effective income tax rate            28.9%    29.7%

Earnings from continuing operations, as
 reported                                  $   770  $   671
Deduct: Net adjustment related to reversal
 of legal reserves (1)                         (13)       -
Deduct: Net benefit from settlement of the
 APA (2)                                       (25)       -
Deduct: Gain on sale of an idle
 manufacturing facility (3)                    (14)       -
Deduct: Impact of change in inventory
 accounting method (4)                           -       (8)
Deduct: Net adjustment to taxes and
 interest expense related to the favorable
 resolution of tax contingency (5)               -      (60)
Add: Incremental tax expense associated
 with the repatriation of earnings under
 the AJCA (6)                                    -        8
                                           -------- --------
Adjusted Earnings from continuing
 operations                                $   718  $   611        18%
                                           ======== ========

Diluted earnings per share - continuing
 operations, as reported                   $  1.93  $  1.62
Deduct: Net adjustment related to reversal
 of legal reserves (1)                       (0.03)       -
Deduct: Net benefit from settlement of the
 APA (2)                                     (0.06)       -
Deduct: Gain on sale of an idle
 manufacturing facility (3)                  (0.04)       -
Deduct: Impact of change in inventory
 accounting method (4)                           -    (0.02)
Deduct: Net adjustment to taxes and
 interest expense related to the favorable
 resolution of tax contingency (5)               -    (0.14)
Add: Incremental tax expense associated
 with the repatriation of earnings under
 the AJCA (6)                                    -     0.02
                                           -------- --------
Adjusted Diluted earnings per share -
 continuing operations                     $  1.80  $  1.48        22%
                                           ======== ========

Pro Forma Impact of Use of Proceeds from Sale of Businesses

In August 2006, the company completed the sale of its businesses
in the United Kingdom and Ireland for GBP 460 million or approximately
$870 million and announced that approximately $620 million of the net
proceeds would be used to repurchase shares. To improve the
comparability of results, the following table illustrates the pro
forma impact had 17 million shares been repurchased and eliminated
from shares outstanding in the prior year:

   (millions, except per share amounts)      Third Quarter
                                           -----------------
                                           Apr. 29, Apr. 30,
                                             2007     2007   % Change
                                           ----------------- ---------

Adjusted Earnings from continuing
 operations                                $   179  $   146        23%
                                           ======== ========

Adjusted Diluted earnings per share -
 continuing operations                     $  0.45  $  0.35        29%
                                           ======== ========

Weighted average shares outstanding -
 assuming dilution, as reported                395      413
Deduct: Pro forma impact of shares
 repurchased                                     -      (17)
                                           -------- --------
Pro forma weighted average shares
 outstanding - assuming dilution               395      396
                                           ======== ========


Adjusted Pro forma Diluted earnings per
 share - continuing operations             $  0.45  $  0.37        22%
                                           ======== ========
   (millions, except per share amounts)      Year-to-Date
                                           -----------------
                                           Apr. 29, Apr. 30,
                                             2007     2006   % Change
                                           ----------------- ---------

Adjusted Earnings from continuing
 operations                                $   718  $   611        18%
                                           ======== ========

Adjusted Diluted earnings per share -
 continuing operations                     $  1.80  $  1.48        22%
                                           ======== ========

Weighted average shares outstanding -
 assuming dilution, as reported                398      414
Deduct: Pro forma impact of shares
 repurchased                                     -      (17)
                                           -------- --------
Pro forma weighted average shares
 outstanding - assuming dilution               398      397
                                           ======== ========


Adjusted Pro forma Diluted earnings per
 share - continuing operations             $  1.80  $  1.54        17%
                                           ======== ========

Adjusted Pro Forma Fiscal 2006 Earnings Per Share From Continuing
Operations

The following table illustrates the reconciliation of reported
results to adjusted results excluding the impact of certain changes in
accounting method and other transactions, and the pro forma impact of
utilizing the net proceeds from the sale of the businesses in the
United Kingdom and Ireland to repurchase shares. In addition to items
that impacted Earnings from continuing operations in the nine-month
period ended April 30, 2006, the following items impacted the full
year ended July 30, 2006:

(7) In the fourth quarter of fiscal 2006, the company recorded
additional tax expense of $4 million associated with the repatriation
of earnings under the AJCA. The total expense recognized for the full
year was $13 million ($.03 per share).

(8) In the fourth quarter of fiscal 2006, the company recorded a
non-cash tax benefit of $14 million ($.03 per share) from the
anticipated use of higher levels of foreign tax credits, which could
be utilized as a result of the sale of the company’s United Kingdom
and Ireland businesses.

                       (millions)                         Year Ended
                                                         July 30, 2006
                                                         -------------
Earnings from continuing operations, as reported         $        755
Deduct: Impact of change in inventory accounting method
 (4)                                                               (8)
Deduct: Net adjustment to taxes and interest expense
 related to the favorable resolution of tax contingency
 (5)                                                              (60)
Add: Incremental tax expense associated with the
 repatriation of earnings under the AJCA (7)                       13
Deduct: Adjustment to tax expense related to the use of
 foreign tax credits (8)                                          (14)
                                                         -------------
Adjusted Earnings from continuing operations             $        686
                                                         =============


                                                          Year Ended
                                                         July 30, 2006
                                                         -------------
Diluted earnings per share - continuing operations, as
 reported                                                $       1.82
Deduct: Impact of change in inventory accounting method
 (4)                                                            (0.02)
Deduct: Net adjustment to taxes and interest expense
 related to the favorable resolution of tax contingency
 (5)                                                            (0.14)
Add: Incremental tax expense associated with the
 repatriation of earnings under the AJCA (7)                     0.03
Deduct: Adjustment to tax expense related to the use of
 foreign tax credits (8)                                        (0.03)
                                                         -------------
Adjusted Diluted earnings per share - continuing
 operations                                              $       1.66
                                                         =============


          (millions, except per share amounts)            Year Ended
                                                         July 30, 2006
                                                         -------------

Adjusted Earnings from continuing operations             $        686
                                                         =============

Adjusted Diluted earnings per share - continuing
 operations                                              $       1.66
                                                         =============

Weighted average shares outstanding - assuming dilution,
 as reported                                                      414
Deduct: Pro forma impact of shares repurchased                    (17)
                                                         -------------
Pro forma weighted average shares outstanding - assuming
 dilution                                                         397
                                                         =============


Adjusted Pro forma Diluted earnings per share -
 continuing operations                                   $       1.73
                                                         =============

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

    SOURCE: Campbell Soup Company