caret-down

Campbell Reports Third-Quarter Results

Sales of $1.970 Billion, Comparable to Prior Year; Organic Sales
Increased 1 Percent

Adjusted EBIT from Continuing Operations Rose 12 Percent

Adjusted EPS from Continuing Operations Increased 7 Percent to $0.62

Company Lowers Fiscal 2014 Sales Guidance, Refines Outlook for
Adjusted EBIT, EPS

CAMDEN, N.J.–(BUSINESS WIRE)–May 19, 2014–
Campbell Soup Company (NYSE:CPB) today reported its results for
the third quarter of fiscal 2014.

Third-Quarter Overview

  • U.S. Simple Meals Sales Rose 7 Percent; Earnings Increased 12
    Percent
  • Global Baking and Snacking Sales Declined 1 Percent; Earnings
    Decreased 7 Percent
  • International Simple Meals and Beverages Sales Declined 17 Percent;
    Earnings Decreased 4 Percent

The company reported earnings from continuing operations for the quarter
ended April 27, 2014, of $184 million, or $0.58 per share, compared with
earnings of $169 million, or $0.53 per share, in the prior year. In the
third quarter of fiscal 2014, the company recognized a pre-tax pension
settlement charge of $18 million ($11 million after tax or $0.03 per
share) associated with a U.S. pension plan. The settlement charge
resulted from the level of lump sum distributions from the plan’s assets
in 2014, due primarily to the closure of the Sacramento facility.
Excluding items impacting comparability in both periods, adjusted
earnings from continuing operations increased 7 percent to $195 million
compared with $183 million in the prior year’s quarter, and adjusted
earnings per share from continuing operations increased 7 percent to
$0.62 compared with $0.58 in the year-ago quarter. A detailed
reconciliation of the reported financial information to the adjusted
information is included at the end of this news release.

Denise Morrison, Campbell’s President and Chief Executive Officer, said,
“While we delivered growth in third-quarter earnings, our organic sales
growth of 1 percent reflected mixed performance and fell short of our
expectations.

“Although I am encouraged by our 7 percent sales increase in U.S. Simple
Meals, I am disappointed that our plans did not drive stronger sales
results in U.S. Soup. We recognize that we were cycling a year-ago
quarter when we delivered 14 percent growth in U.S. Soup. Despite an
increase in the frequency of our promotional activity in the third
quarter, we did not realize the anticipated lifts in a challenging
consumer environment. Sales of U.S. Soup held steady versus the strong
performance in the year-ago quarter. Within U.S. Soup, ‘Swanson’ broth
maintained strong momentum as consumers responded to our strong
marketing and continued to cook more with broth.”

Morrison continued, “I am pleased with our double-digit sales gain in
U.S. Sauces including ‘Prego’, ‘Pace’ and ‘Campbell’s’ Skillet and Slow
Cooker dinner sauces, with consumers using these products to prepare
simple meals. I remain encouraged by the growing platform Bolthouse
Farms provides us in the packaged fresh category with juices, salad
dressings and carrots.

“We continue to address our challenges in U.S. Beverages and Australia.
In both cases, our new leadership has plans to deliver better results.”

Morrison concluded, “Given our performance year-to-date, we are lowering
our guidance for full-year sales growth to approximately 3 percent. We
are also refining our expectations for growth in adjusted EBIT and
adjusted EPS. While we are not satisfied with our sales performance, we
remain confident that we are pursuing the right strategy to reshape
Campbell and deliver sustainable, profitable net sales growth as we
continue to strengthen our core business and expand into faster-growing
spaces.”

Third-Quarter Sales from Continuing Operations

For the third quarter, sales from continuing operations of $1.970
billion were comparable to the year-ago quarter. Organic sales increased
by 1 percent. 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 3 percent
  • Acquisitions added 2 percent
  • Currency subtracted 2 percent

*Numbers do not add due to rounding

Third-Quarter Financial Details – Continuing Operations

  • Gross margin was 34.3 percent compared with 36.0 percent a year ago.
    Excluding items impacting comparability in both periods, adjusted
    gross margin for the quarter was 35.2 percent, compared with 37.0
    percent a year ago. The decline in gross margin was primarily due to
    higher promotional spending, increased supply chain costs, cost
    inflation and the impact of acquisitions, partly offset by
    productivity improvements and higher selling prices.
  • Marketing and selling expenses decreased 11 percent to $217 million.
    The decrease was primarily due to lower advertising and consumer
    promotion expenses and the negative impact of currency. In U.S. Soup
    and Pepperidge Farm, a portion of advertising and consumer promotion
    dollars was redeployed to trade promotional activities.
  • Administrative expenses decreased $30 million to $134 million,
    primarily due to lower incentive compensation costs, lower pension and
    health care expenses and cost savings from recent restructuring
    initiatives, partly offset by the impact of acquisitions.
  • EBIT was $292 million compared with $257 million in the prior-year
    quarter. Excluding items impacting comparability in both years,
    adjusted EBIT increased 12 percent to $310 million. The increase was
    primarily due to lower administrative expenses and marketing expenses,
    partly offset by a lower gross margin percentage, which reflected the
    impact of higher promotional spending.
  • The tax rate in the quarter was 30.2 percent compared with 26.1
    percent in the prior year. Excluding items impacting comparability in
    both periods, the current quarter’s adjusted tax rate was 30.7 percent
    compared to 26.7 percent in the prior year. The prior-year rate
    benefitted from lower taxes on foreign earnings and the favorable
    settlement of certain state tax matters.

Nine-Month Results from Continuing Operations

Earnings from continuing operations for the first nine months were $600
million, or $1.90 per share, compared with earnings of $572 million, or
$1.80 per share, in the prior year. Excluding items impacting
comparability in both periods, adjusted earnings from continuing
operations decreased 1 percent to $645 million compared with $650
million in the prior year, and adjusted earnings per share from
continuing operations decreased to $2.04 from $2.05 in the year-ago
period.

For the first nine months, sales from continuing operations increased 1
percent to $6.416 billion. Organic sales were comparable to the prior
year. The increase in sales for the first nine months reflected the
following factors:

  • Acquisitions added 4 percent
  • Price and sales allowances added 2 percent
  • Increased promotional spending subtracted 2 percent
  • Currency subtracted 2 percent

*Numbers do not add due to rounding

Nine-Month Financial Details – Continuing Operations

  • Gross margin was 35.3 percent compared with 36.2 percent a year ago.
    Excluding items impacting comparability in both years, adjusted gross
    margin in the first nine months was 35.6 percent, compared with 37.4
    percent a year ago. The decline was primarily attributable to cost
    inflation, higher promotional spending, increased supply chain costs,
    the impact of acquisitions and the November 2013 Plum Organics recall,
    partly offset by productivity improvements and higher selling prices.
  • Marketing and selling expenses decreased 1 percent to $746 million.
    The decrease was primarily due to lower advertising and consumer
    promotion expenses, the impact of currency and lower marketing
    overhead expenses, partly offset by the addition of acquisitions.
  • Administrative expenses decreased $58 million to $424 million,
    primarily due to lower incentive compensation costs, lower pension and
    health care expenses and cost savings from recent restructuring
    initiatives, partly offset by the impact of acquisitions.
  • EBIT was $958 million compared with $902 million in the prior-year
    period. Excluding items impacting comparability in both years,
    adjusted EBIT of $1.022 billion was comparable to the prior year.
  • Net interest expense decreased $6 million to $89 million, reflecting
    lower interest rates.
  • The tax rate in the first nine months was 32.0 percent compared with
    30.0 percent in the prior year. Excluding items impacting
    comparability in both periods, the current year’s adjusted tax rate
    was 31.3 percent compared to 30.8 percent in the prior year. The
    prior-year rate benefitted from the favorable settlement of certain
    state tax matters.
  • Cash flow from operations was $763 million compared with $864 million
    in the prior year. The decline was primarily due to lower cash
    earnings and taxes paid on the divestiture of the European simple
    meals business, partly offset by lower working capital requirements.

Campbell Revises Fiscal 2014 Guidance for Continuing Operations

The company has revised its full-year guidance for fiscal 2014. It now
expects that sales from continuing operations will grow approximately 3
percent in the current fiscal year, compared with the previous range of
4 to 5 percent. Full-year growth in adjusted EBIT is expected to be at
the low end of the previously forecast range of 4 to 6 percent. Adjusted
EPS for the full year is expected to be at the low end of the previously
announced guidance of 2 to 4 percent, or $2.53 to $2.58 per share.

Summary of Fiscal 2014 Third-Quarter and Nine-Month Results by Segment

U.S. Simple Meals

Sales for U.S. Simple Meals were $672 million for the third quarter, an
increase of 7 percent compared with the year-ago period. A breakdown of
the change in sales follows:

  • Volume and mix added 4 percent
  • Price and sales allowances added 2 percent
  • Increased promotional spending subtracted 3 percent
  • The acquisition of Plum Organics added 4 percent

U.S. Soup sales were comparable to a strong year-ago quarter, in which
sales increased 14 percent.

  • Sales of “Campbell’s” condensed soups decreased 3 percent, with sales
    declines in eating varieties partly offset by gains in cooking
    varieties.
  • Sales of ready-to-serve soups decreased 1 percent, due to declines in
    canned and microwavable soup varieties.
  • Broth sales increased 14 percent, driven by double-digit volume gains
    in aseptic broth.

Sales of U.S. Sauces increased 25 percent versus the prior-year quarter,
with the acquisition of Plum Organics contributing 14 points of growth.
Excluding the acquisition, sales increased 11 percent primarily driven
by gains in “Prego” pasta sauce, new “Campbell’s” dinner sauces and
“Pace” Mexican sauces.

U.S. Simple Meals operating earnings for the third quarter increased 12
percent to $175 million. The increase was primarily due to lower
marketing expenses and administrative expenses, partly offset by a lower
gross margin percentage.

For the first nine months, sales for U.S. Simple Meals increased 3
percent to $2.426 billion. A breakdown of the change in sales follows:

  • Volume and mix added 1 percent
  • Price and sales allowances added 2 percent
  • Increased promotional spending subtracted 2 percent
  • The acquisition of Plum Organics added 2 percent

U.S. Soup sales decreased 1 percent due to a decline of 4 percent in
ready-to-serve soups and a decrease of 2 percent in condensed soups,
partly offset by a gain of 11 percent in broth.

U.S. Simple Meals operating earnings were $600 million in the first nine
months compared with $621 million in the year-ago period, a decrease of
3 percent. A lower gross margin percentage and expenses related to the
November 2013 Plum Organics recall were partly offset by lower marketing
and administrative expenses.

Global Baking and Snacking

Sales for Global Baking and Snacking were $564 million for the third
quarter, a decrease of 1 percent from a year ago. The acquisition of
Kelsen Group contributed $17 million to sales. The decrease in sales
reflected the following factors:

  • The acquisition of Kelsen Group added 3 percent
  • Volume and mix added 3 percent
  • Price and sales allowances added 2 percent
  • Increased promotional spending subtracted 5 percent
  • Currency subtracted 4 percent

Further details of sales results included the following:

  • Sales of Pepperidge Farm products decreased, driven by increased
    promotional spending partly offset by volume gains.

    • In cookies and crackers, sales decreased due to declines in
      “Pepperidge Farm” cookies. Cracker sales were comparable to the
      prior year as gains in “Goldfish” snack crackers were offset by
      declines in adult cracker varieties.
    • Sales of frozen products decreased, driven by volume declines.
    • Sales of fresh bakery products increased, driven by volume gains
      in bread and rolls.
  • Sales at Arnott’s decreased due to the negative impact of currency.
    Excluding the impact of currency, sales at Arnott’s rose as strong
    gains in Indonesia were partly offset by declines in Australia.

Operating earnings for the quarter were $68 million, a decrease of 7
percent over the prior year. The decrease was primarily driven by higher
promotional spending and cost inflation, partly offset by productivity
improvements, higher selling prices and lower advertising expenses. The
decrease reflected Kelsen Group’s off-season operating results, lower
earnings in Arnott’s and the unfavorable impact of currency, partly
offset by growth in Pepperidge Farm.

For the first nine months, sales increased 6 percent to $1.812 billion.
The acquisition of Kelsen Group contributed $161 million to sales
growth. A breakdown of the change in sales follows:

  • The acquisition of Kelsen Group added 9 percent
  • Volume and mix added 1 percent
  • Price and sales allowances added 3 percent
  • Increased promotional spending subtracted 3 percent
  • Currency subtracted 4 percent

Operating earnings in the first nine months were $234 million compared
with $232 million in the year-ago period, an increase of 1 percent. The
increase was primarily driven by the acquisition of Kelsen Group and
lower marketing and administrative expenses, partially offset by a lower
gross margin percentage and the unfavorable impact of currency. The
increase reflected growth in Pepperidge Farm and Kelsen Group’s
operating results, partly offset by lower earnings in Arnott’s and the
unfavorable impact of currency.

International Simple Meals and Beverages

Sales for International Simple Meals and Beverages were $186 million for
the third quarter, a decrease of 17 percent from a year ago. The sales
decrease reflected the following factors:

  • Volume and mix subtracted 6 percent
  • Increased promotional spending subtracted 1 percent
  • Currency subtracted 7 percent
  • Net accounting in Mexico subtracted 3 percent

Sales declined in Latin America, the Asia Pacific region and Canada.

  • In Latin America, sales declined primarily due to lower volumes and
    lower selling prices related to the implementation of the company’s
    new business model in Mexico.
  • In the Asia Pacific region, sales decreased primarily due to declines
    in Australia, the negative impact of currency and lower sales in
    Japan, partly offset by sales gains in Malaysia.
  • In Canada, sales decreased due to the negative impact of currency and
    sales declines in beverages, partly offset by sales gains in snacks
    and soup.

Operating earnings were $27 million, a decrease of 4 percent. The
decrease in operating earnings was primarily due to lower volumes,
partly offset by lower administrative and selling expenses.

For the first nine months, sales were $592 million, a decrease of 13
percent. Sales were impacted by the following factors:

  • Volume and mix subtracted 2 percent
  • Price and sales allowances subtracted 2 percent
  • Currency subtracted 7 percent
  • Net accounting in Mexico subtracted 2 percent

Sales declined in Canada, Latin America and the Asia Pacific region.

Operating earnings in the first nine months were $85 million compared
with $94 million in the year-ago period, a decrease of 10 percent. The
decrease was primarily driven by lower selling prices, lower volumes and
the unfavorable impact of currency, partly offset by lower
administrative expenses and productivity improvements.

U.S. Beverages

Sales for U.S. Beverages were $190 million for the third quarter, a
decrease of 4 percent compared to the year-ago period. The decrease was
driven by unfavorable volume and mix.

The decrease in sales was driven by declines in “V8 V-Fusion” and “V8
Splash” beverages, partly offset by gains in “V8” vegetable juice.

Operating earnings for the quarter were $29 million compared with $33
million in the prior year, a decrease of 12 percent. The decrease was
primarily driven by cost inflation, increased supply chain costs and
higher marketing expenses, partially offset by lower administrative
expenses and productivity improvements.

For the first nine months, sales decreased 5 percent to $539 million.
The decrease was driven by unfavorable volume and mix.

Operating earnings in the first nine months decreased 16 percent to $84
million, primarily driven by increased supply chain costs, cost
inflation and volume declines, partly offset by productivity
improvements and lower administrative expenses.

Bolthouse and Foodservice

Sales for Bolthouse and Foodservice increased 4 percent for the quarter
to $358 million. The sales increase reflected the following factors:

  • Volume and mix added 5 percent
  • Price and sales allowances added 1 percent
  • Increased promotional spending subtracted 2 percent

Bolthouse Farms sales increased 6 percent, driven by double-digit gains
in premium refrigerated beverages and salad dressings. Excluding
currency, North America Foodservice sales increased compared to the
year-ago quarter.

Operating earnings for the quarter were $23 million compared with $27
million in the prior year, a decrease of 15 percent. The decrease was
primarily due to cost inflation and increased promotional spending at
Bolthouse Farms, partly offset by higher volumes and lower
administrative expenses.

For the first nine months, sales increased 3 percent to $1.047 billion.
The sales increase reflected the following factors:

  • Volume and mix added 2 percent
  • Price and sales allowances added 1 percent
  • Increased promotional spending subtracted 1 percent
  • An additional week of sales at Bolthouse Farms added 1 percent

Excluding the additional week from Bolthouse Farms, segment sales rose
with gains in Bolthouse Farms offset by declines in Foodservice.
Bolthouse Farms organic sales were up due to double-digit growth in
premium refrigerated beverages and salad dressings.

Operating earnings for the first nine months were $88 million compared
with $91 million in the year-ago period, a decrease of 3 percent. The
decline was primarily due to cost inflation, partly offset by lower
administrative expenses and higher sales.

Unallocated Corporate Expenses

Unallocated corporate expenses for the quarter were $29 million compared
with $59 million a year ago. The current quarter included a pension
settlement charge of $18 million associated with a U.S. pension plan.
The prior-year quarter included $20 million of restructuring-related
costs. The balance of the decrease for the current quarter was primarily
due to gains on open commodity hedges and lower incentive compensation
costs. Unallocated corporate expenses for the first nine months were $98
million compared with $205 million in the prior year. The current year
included a pension settlement charge of $18 million associated with a
U.S. pension plan and a $9 million loss on foreign exchange forward
contracts related to the sale of the European simple meals business. The
prior year included $81 million of restructuring-related costs and $10
million of transaction costs related to the Bolthouse Farms acquisition.
The balance of the decrease for the first nine months was primarily due
to lower incentive compensation costs and gains on open commodity hedges
and foreign exchange transactions.

Results from Discontinued Operations

The company completed the divestiture of its European simple meals
business to CVC Capital Partners on Oct. 28, 2013. Results for the
European simple meals business are reported as discontinued operations.
For the first nine months, net earnings from discontinued operations
were $81 million, or $0.26 per share.

Non-GAAP Financial Information

A detailed reconciliation of the reported financial information to the
adjusted financial information is included at the end of this news
release.

Conference Call

Campbell will host a conference call to discuss these results on May 19,
2014, at 8:30 a.m. Eastern Daylight Time. Participants may access the
call at +1 (703) 639-2008. The conference ID is 1635565. Participants
should call at least ten minutes prior to the starting time. The call
will also be broadcast live over the Internet at investor.campbellsoupcompany.com
and can be accessed by clicking on the “Webcast-Live” button. A
recording of the call will be available approximately two hours after it
is completed through midnight on June 2, 2014, at +1 (703) 925-2533. The
access code is 1635565. A recording of the call can also be accessed
online by visiting investor.campbellsoupcompany.com
and clicking on the “News & Events” button, followed by the “Webcasts &
Presentations” button. To download the new Campbell investor relations
app, which offers access to SEC documents, news releases, audiocasts and
more, please visit the Apple App store to download on your iPhone or
iPad, or Google Play for your Android mobile device.

Reporting Segments

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

U.S. Simple Meals includes the following products: “Campbell’s”
condensed and ready-to-serve soups, “Swanson” broth and stocks, “Prego”
pasta sauces, “Pace” Mexican sauces, “Campbell’s” gravies, pasta, beans
and dinner sauces, “Swanson” canned poultry and “Plum Organics” food
and snacks.

Global Baking and Snacking aggregates the following: Pepperidge
Farm cookies, crackers, bakery and frozen products in U.S. retail;
Arnott’s biscuits in Australia and Asia Pacific; and Kelsen cookies
globally.

International Simple Meals and Beverages aggregates the retail
business in Canada and the simple meals and beverages business in Asia
Pacific, Latin America and China.

U.S. Beverages includes the following products: “V8” juices and
beverages and “Campbell’s” tomato juice.

Bolthouse and Foodservice comprises Bolthouse Farms carrot
products, including fresh carrots, juice concentrate and fiber;
Bolthouse Farms super-premium refrigerated beverages and refrigerated
salad dressings; and the North America Foodservice business. The North
America Foodservice business encompasses the distribution of products
such as soup, specialty entrees, beverage products, other prepared foods
and Pepperidge Farm products through various food service channels in
the United States and Canada.

About Campbell Soup Company

Campbell Soup Company is a manufacturer and marketer of high-quality
foods and simple meals, including soup and sauces, snacks and healthy
beverages. Founded in 1869, the company has a portfolio of
market-leading brands, including “Campbell’s,” “Pepperidge Farm,”
“Arnott’s,” “V8,” “Bolthouse Farms,” “Plum Organics” and “Kjeldsens.”
Through its corporate social responsibility program, the company strives
to make a positive impact in the workplace, in the marketplace and in
the communities in which it operates. Campbell is a member of the
Standard & Poor’s 500 and the Dow Jones Sustainability Indexes. For more
information, visit www.campbellsoupcompany.com
or follow company news on Twitter via @CampbellSoupCo.

Forward Looking Statements

This release contains “forward-looking statements” that reflect the
company’s current expectations about future performance, particularly
the company’s predictions about fiscal 2014 sales, EBIT and EPS. These
forward-looking statements rely on a number of assumptions and estimates
that could be inaccurate and which are subject to risks and
uncertainties. The factors that could cause the company’s actual results
to vary materially from those anticipated or expressed in any
forward-looking statement include (1) the impact of strong competitive
responses to the company’s efforts to leverage its brand power in the
market with product innovation, promotional programs and advertising;
(2) the impact of changes in consumer demand for the company’s products;
(3) the risks associated with trade and consumer acceptance of product
improvements, shelving initiatives, new products, and pricing and
promotional strategies; (4) the company’s ability to realize projected
cost savings and benefits; (5) the company’s ability to manage changes
to its business processes; (6) the practices and increased significance
of certain of the company’s key customers; (7) the impact of
fluctuations in the supply of and costs of energy, raw and packaging
materials; (8) the impact of inventory management practices by the
company’s customers; (9) the impact of portfolio changes,
including the Bolthouse Farms, Plum Organics and Kelsen Group
acquisitions and the European simple meals divestiture; (10) the
uncertainties of litigation; (11) the impact of changes in currency
exchange rates, tax rates, interest rates, debt and equity markets,
inflation rates, economic conditions and other external factors; (12)
the impact of unforeseen business disruptions in one or more of the
company’s markets due to political instability, civil disobedience,
armed hostilities, natural disasters or other calamities; and (13) other
factors described in the company’s most recent Form 10-K and subsequent
Securities and Exchange Commission filings. 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.

 
CAMPBELL SOUP COMPANY
CONSOLIDATED STATEMENTS OF EARNINGS (unaudited)
(millions, except per share amounts)
 
THREE MONTHS ENDED
April 27, 2014   April 28, 2013
Net sales $ 1,970   $ 1,962
Costs and expenses
Cost of products sold 1,294 1,256
Marketing and selling expenses 217 245
Administrative expenses 134 164
Research and development expenses 30 35
Other expenses 2 4
Restructuring charges 1   1
Total costs and expenses 1,678   1,705
Earnings before interest and taxes 292 257
Interest, net 30   31
Earnings before taxes 262 226
Taxes on earnings 79   59
Earnings from continuing operations 183 167
Earnings from discontinued operations   12
Net earnings 183 179
Net loss attributable to noncontrolling interests 1   2
Net earnings attributable to Campbell Soup Company $ 184   $ 181
Per share – basic
Earnings from continuing operations attributable to Campbell Soup
Company
$ .59 $ .54
Earnings from discontinued operations   .04
Net earnings attributable to Campbell Soup Company $ .59   $ .58
Dividends $ .312   $
Weighted average shares outstanding – basic 314   314
Per share – assuming dilution
Earnings from continuing operations attributable to Campbell Soup
Company
$ .58 $ .53
Earnings from discontinued operations   .04
Net earnings attributable to Campbell Soup Company $ .58   $ .57
Weighted average shares outstanding – assuming dilution 316   317
 
 
In the third quarter of fiscal 2014, the company recognized a
pre-tax pension settlement charge in Cost of products sold of $18
($11 after tax or $.03 per share in earnings from continuing
operations) associated with a U.S. pension plan. The settlement
resulted from the level of lump sum distributions from the plan’s
assets in 2014, primarily due to the closure of the facility in
Sacramento, California.
 
In fiscal 2013, the company implemented initiatives to improve its
U.S. supply chain cost structure and increase asset utilization
across its U.S. thermal plant network; expand access to
manufacturing and distribution capabilities in Mexico; improve its
Pepperidge Farm bakery supply chain cost structure; and reduce
overhead in North America. In the third quarter of fiscal 2013, the
company recorded pre-tax restructuring charges of $1 and
restructuring-related costs of $20 in Cost of products sold
(aggregate impact of $14 after tax or $.04 per share on earnings
from continuing operations).
 
 
CAMPBELL SOUP COMPANY
CONSOLIDATED STATEMENTS OF EARNINGS (unaudited)
(millions, except per share amounts)
 
NINE MONTHS ENDED
April 27, 2014   April 28, 2013
Net sales $ 6,416   $ 6,329
Costs and expenses
Cost of products sold 4,149 4,040
Marketing and selling expenses 746 756
Administrative expenses 424 482
Research and development expenses 88 94
Other expenses 16 24
Restructuring charges 35   31
Total costs and expenses 5,458   5,427
Earnings before interest and taxes 958 902
Interest, net 89   95
Earnings before taxes 869 807
Taxes on earnings 278   242
Earnings from continuing operations 591 565
Earnings from discontinued operations 81   44
Net earnings 672 609
Net loss attributable to noncontrolling interests 9   7
Net earnings attributable to Campbell Soup Company $ 681   $ 616
Per share – basic
Earnings from continuing operations attributable to Campbell Soup
Company
$ 1.91 $ 1.82
Earnings from discontinued operations .26   .14
Net earnings attributable to Campbell Soup Company $ 2.17   $ 1.96
Dividends $ .936   $ .87
Weighted average shares outstanding – basic 314   314
Per share – assuming dilution
Earnings from continuing operations attributable to Campbell Soup
Company
$ 1.90 $ 1.80
Earnings from discontinued operations .26   .14
Net earnings attributable to Campbell Soup Company $ 2.16   $ 1.94
Weighted average shares outstanding – assuming dilution 316   317
 
 
In the third quarter of fiscal 2014, the company recognized a
pre-tax pension settlement charge in Cost of products sold of $18
($11 after tax or $.03 per share in earnings from continuing
operations) associated with a U.S. pension plan. The settlement
resulted from the level of lump sum distributions from the plan’s
assets in 2014, primarily due to the closure of the facility in
Sacramento, California.
 
In fiscal 2014, the company and its joint venture partner Swire
Pacific Limited agreed to restructure manufacturing and streamline
operations for its soup and broth business in China. The company
recorded pre-tax restructuring charges of $14 ($6 after tax or $.02
per share in earnings from continuing operations attributable to
Campbell Soup Company) related to this initiative.
 
In fiscal 2014, the company recorded pre-tax restructuring charges
of $20 ($13 after tax or $.04 per share in earnings from continuing
operations) associated with initiatives to streamline its salaried
workforce in North America and its workforce in the Asia Pacific
region.
 
In fiscal 2013, the company implemented initiatives to improve its
U.S. supply chain cost structure and increase asset utilization
across its U.S. thermal plant network; expand access to
manufacturing and distribution capabilities in Mexico; improve its
Pepperidge Farm bakery supply chain cost structure; and reduce
overhead in North America. In fiscal 2014, the company recorded
pre-tax restructuring charges of $1 and restructuring-related costs
of $2 in Cost of products sold (aggregate impact of $2 after tax or
$.01 per share on earnings from continuing operations) related to
the initiatives. In fiscal 2013, the company recorded pre-tax
restructuring charges of $31 and restructuring-related costs of $81
in Cost of products sold (aggregate impact of $71 after tax or $.22
per share on earnings from continuing operations).
 
On October 28, 2013, the company announced that it completed the
sale of its simple meals business in Europe. The results of the
business are reported as discontinued operations. In the first
quarter of fiscal 2014, the company recorded an unrealized loss of
$9 ($6 after tax or $.02 per share) on foreign exchange forward
contracts used to hedge the proceeds from the sale of the European
simple meals business. The loss was included in Other expenses in
earnings from continuing operations. In addition, the company
recorded tax expense of $7 ($.02 per share) in earnings from
continuing operations associated with the sale of the business.
 
In fiscal 2013, the company recorded pre-tax transaction costs of
$10 ($7 after tax or $.02 per share) associated with the acquisition
of Bolthouse Farms, which closed on August 6, 2012. The costs were
included in Other expenses in earnings from continuing operations.
 
     
CAMPBELL SOUP COMPANY
CONSOLIDATED SUPPLEMENTAL SCHEDULE OF SALES AND EARNINGS (unaudited)
(millions, except per share amounts)
 
THREE MONTHS ENDED
April 27, 2014     April 28, 2013

Percent
Change

Sales

Contributions:
U.S. Simple Meals $ 672 $ 627 7%
Global Baking and Snacking 564 568 (1)%
International Simple Meals and Beverages 186 225 (17)%
U.S. Beverages 190 198 (4)%
Bolthouse and Foodservice 358 344 4%
Total sales $ 1,970 $ 1,962 —%

Earnings

Contributions:
U.S. Simple Meals $ 175 $ 156 12%
Global Baking and Snacking 68 73 (7)%
International Simple Meals and Beverages 27 28 (4)%
U.S. Beverages 29 33 (12)%
Bolthouse and Foodservice 23 27 (15)%
Total operating earnings 322 317 2%
Unallocated corporate expenses 29 59
Restructuring charges 1 1
Earnings before interest and taxes 292 257 14%
Interest, net 30 31
Taxes on earnings 79 59
Earnings from continuing operations 183 167
Earnings from discontinued operations 12
Net earnings 183 179 2%
Net loss attributable to noncontrolling interests 1 2
Net earnings attributable to Campbell Soup Company $ 184 $ 181 2%
Per share – assuming dilution
Earnings from continuing operations attributable to Campbell Soup
Company
$ .58 $ .53
Earnings from discontinued operations .04
Net earnings attributable to Campbell Soup Company $ .58 $ .57 2%
 
 
In the third quarter of fiscal 2014, the company recognized a
pre-tax pension settlement charge in Unallocated corporate expenses
of $18 ($11 after tax or $.03 per share in earnings from continuing
operations) associated with a U.S. pension plan. The settlement
resulted from the level of lump sum distributions from the plan’s
assets in 2014, primarily due to the closure of the facility in
Sacramento, California.
 
In fiscal 2013, the company implemented initiatives to improve its
U.S. supply chain cost structure and increase asset utilization
across its U.S. thermal plant network; expand access to
manufacturing and distribution capabilities in Mexico; improve its
Pepperidge Farm bakery supply chain cost structure; and reduce
overhead in North America. In the third quarter of fiscal 2013, the
company recorded pre-tax restructuring charges of $1 and
restructuring-related costs of $20 in Unallocated corporate expenses
(aggregate impact of $14 after tax or $.04 per share on earnings
from continuing operations).
 
     
CAMPBELL SOUP COMPANY
CONSOLIDATED SUPPLEMENTAL SCHEDULE OF SALES AND EARNINGS (unaudited)
(millions, except per share amounts)
 
NINE MONTHS ENDED
April 27, 2014     April 28, 2013

Percent
Change

Sales

Contributions:
U.S. Simple Meals $ 2,426 $ 2,356 3%
Global Baking and Snacking 1,812 1,703 6%
International Simple Meals and Beverages 592 682 (13)%
U.S. Beverages 539 569 (5)%
Bolthouse and Foodservice 1,047 1,019 3%
Total sales $ 6,416 $ 6,329 1%

Earnings

Contributions:
U.S. Simple Meals $ 600 $ 621 (3)%
Global Baking and Snacking 234 232 1%
International Simple Meals and Beverages 85 94 (10)%
U.S. Beverages 84 100 (16)%
Bolthouse and Foodservice 88 91 (3)%
Total operating earnings 1,091 1,138 (4)%
Unallocated corporate expenses 98 205
Restructuring charges 35 31
Earnings before interest and taxes 958 902 6%
Interest, net 89 95
Taxes on earnings 278 242
Earnings from continuing operations 591 565
Earnings from discontinued operations 81 44
Net earnings 672 609 10%
Net loss attributable to noncontrolling interests 9 7
Net earnings attributable to Campbell Soup Company $ 681 $ 616 11%
Per share – assuming dilution
Earnings from continuing operations attributable to Campbell Soup
Company
$ 1.90 $ 1.80
Earnings from discontinued operations .26 .14
Net earnings attributable to Campbell Soup Company $ 2.16 $ 1.94 11%
 
 
In the third quarter of fiscal 2014, the company recognized a
pre-tax pension settlement charge in Unallocated corporate expenses
of $18 ($11 after tax or $.03 per share in earnings from continuing
operations) associated with a U.S. pension plan. The settlement
resulted from the level of lump sum distributions from the plan’s
assets in 2014, primarily due to the closure of the facility in
Sacramento, California.
 
In fiscal 2014, the company and its joint venture partner Swire
Pacific Limited agreed to restructure manufacturing and streamline
operations for its soup and broth business in China. The company
recorded pre-tax restructuring charges of $14 ($6 after tax or $.02
per share in earnings from continuing operations attributable to
Campbell Soup Company) related to this initiative.
 
In fiscal 2014, the company recorded pre-tax restructuring charges
of $20 ($13 after tax or $.04 per share in earnings from continuing
operations) associated with initiatives to streamline its salaried
workforce in North America and its workforce in the Asia Pacific
region.
 
In fiscal 2013, the company implemented initiatives to improve its
U.S. supply chain cost structure and increase asset utilization
across its U.S. thermal plant network; expand access to
manufacturing and distribution capabilities in Mexico; improve its
Pepperidge Farm bakery supply chain cost structure; and reduce
overhead in North America. In fiscal 2014, the company recorded
pre-tax restructuring charges of $1 and restructuring-related costs
of $2 in Unallocated corporate expenses (aggregate impact of $2
after tax or $.01 per share on earnings from continuing operations)
related to the initiatives. In fiscal 2013, the company recorded
pre-tax restructuring charges of $31 and restructuring-related costs
of $81 in Unallocated corporate expenses (aggregate impact of $71
after tax or $.22 per share on earnings from continuing operations).
 
On October 28, 2013, the company announced that it completed the
sale of its simple meals business in Europe. The results of the
business are reported as discontinued operations. In the first
quarter of fiscal 2014, the company recorded an unrealized loss of
$9 ($6 after tax or $.02 per share) on foreign exchange forward
contracts used to hedge the proceeds from the sale of the European
simple meals business. The loss was included in Unallocated
corporate expenses in earnings from continuing operations. In
addition, the company recorded tax expense of $7 ($.02 per share) in
earnings from continuing operations associated with the sale of the
business.
 
In fiscal 2013, the company recorded pre-tax transaction costs of
$10 ($7 after tax or $.02 per share) associated with the acquisition
of Bolthouse Farms, which closed on August 6, 2012. The costs were
included in Unallocated corporate expenses in earnings from
continuing operations.
 
   
CAMPBELL SOUP COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
(millions)
 
April 27, 2014 April 28, 2013
Current assets $ 1,947 $ 2,177
Plant assets, net 2,263 2,356
Intangible assets, net 3,616 3,786
Other assets 138   134
Total assets $ 7,964   $ 8,453
Current liabilities $ 2,817 $ 2,604
Long-term debt 2,247 2,944
Other liabilities 1,309 1,592
Total equity 1,591   1,313
Total liabilities and equity $ 7,964   $ 8,453
Total debt $ 3,909   $ 4,253
Cash and cash equivalents $ 222   $ 453
 
 

Reconciliation of GAAP to Non-GAAP Financial Measures

Third Quarter Ended April 27, 2014

 
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.
 

Organic Net Sales

 
Organic net sales exclude the impact of acquisitions, currency and
presenting revenue on a net basis in connection with a new business
model in Mexico in fiscal 2014. The company believes that organic
net sales improves the comparability of year-to-year results. A
reconciliation of net sales as reported to organic net sales follows.
 
Three Months Ended
  April 27, 2014   April 28, 2013   % Change
Net Sales,       Impact of   Net Sales,  
as Impact of Impact of Net Organic Net Sales, as as Organic
(millions) reported   Currency   Acquisitions   Accounting   Net Sales Reported Reported   Net Sales
U.S. Simple Meals $ 672 $ $ (24 ) $ $ 648 $ 627 7 % 3 %
Global Baking and Snacking 564 20 (17 ) 567 568 (1 )% %
International Simple Meals and Beverages 186 16 7 209 225 (17 )% (7 )%
U.S. Beverages 190 190 198 (4 )% (4 )%
Bolthouse and Foodservice   358     1               359   344 4 %   4 %
Total Net Sales $ 1,970   $ 37   $ (41 )   $ 7   $ 1,973 $ 1,962 %   1 %
 
 
Year-to-date
  April 27, 2014   April 28, 2013   % Change  
Net Sales,       Impact of   Net Sales,  
as Impact of Impact of Net Organic Net Sales, as as Organic
(millions) reported   Currency   Acquisitions   Accounting   Net Sales Reported Reported   Net Sales
U.S. Simple Meals $ 2,426 $ $ (56 ) $ $ 2,370 $ 2,356 3 % 1 %
Global Baking and Snacking 1,812 61 (161 ) 1,712 1,703 6 % 1 %
International Simple Meals and Beverages 592 45 17 654 682 (13 )% (4 )%
U.S. Beverages 539 539 569 (5 )% (5 )%
Bolthouse and Foodservice   1,047     2     (14 )         1,035   1,019 3 %   2 %
Total Net Sales $ 6,416   $ 108   $ (231 )   $ 17   $ 6,310 $ 6,329 1 %   %
 
 

Items Impacting Gross Margin and Earnings

 
The company believes that financial information excluding certain
transactions that are 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 gross margin and earnings results excluding
these transactions.
     
The following items impacted gross margin and/or earnings:
 
(1) In the second quarter of fiscal 2014, the company and its joint
venture partner Swire Pacific Limited agreed to restructure
manufacturing and streamline operations for its soup and broth
business in China. In fiscal 2014, the company recorded pre-tax
restructuring charges of $14 million ($6 million after tax or $.02
per share in earnings from continuing operations attributable to
Campbell Soup Company) related to this initiative.
 
In the first quarter of fiscal 2014, the company recorded pre-tax
restructuring charges of $20 million ($13 million after tax or $.04
per share in earnings from continuing operations) associated with
initiatives to streamline its salaried workforce in North America
and its workforce in the Asia Pacific region.
 
In fiscal 2013, the company implemented initiatives to improve its
U.S. supply chain cost structure and increase asset utilization
across its U.S. thermal plant network; expand access to
manufacturing and distribution capabilities in Mexico; improve its
Pepperidge Farm bakery supply chain cost structure; and reduce
overhead in North America. In fiscal 2014, the company recorded
pre-tax restructuring charges of $1 million and
restructuring-related costs of $2 million in Cost of products sold
(aggregate impact of $2 million after tax or $.01 per share on
earnings from continuing operations). In the third quarter of fiscal
2013, the company recorded pre-tax restructuring charges of $1
million and restructuring-related costs of $20 million in Cost of
products sold (aggregate impact of $14 million after tax or $.04 per
share on earnings from continuing operations). The year-to-date 2013
impact was pre-tax restructuring charges of $31 million and
restructuring-related costs of $81 million in Cost of products sold
(aggregate impact of $71 million after tax or $.22 per share on
earnings from continuing operations). For the year ended July 28,
2013, the company recorded pre-tax restructuring charges of $51
million and restructuring-related costs of $91 million in Cost of
products sold (aggregate impact of $90 million after tax or $.28 per
share on earnings from continuing operations).
 
(2) In the third quarter of fiscal 2014, the company recognized a
pre-tax pension settlement charge in Cost of products sold of $18
million ($11 million after tax or $.03 per share in earnings from
continuing operations) associated with a U.S. pension plan. The
settlement resulted from the level of lump sum distributions from
the plan’s assets in 2014, primarily due to the closure of the
facility in Sacramento, California.
 
(3) On October 28, 2013, the company announced it completed the sale of
its simple meals business in Europe. The results of the business are
reported as discontinued operations. In the first quarter of fiscal
2014, the company recorded an unrealized loss of $9 million ($6
million after tax or $.02 per share) on foreign exchange forward
contracts used to hedge the proceeds from the sale of the European
simple meals business. The loss was included in earnings from
continuing operations. In addition, the company recorded tax expense
of $7 million ($.02 per share) in earnings from continuing
operations associated with the sale. In the fourth quarter of fiscal
2013, the company recorded an impairment charge on the intangible
assets of this business of $396 million ($263 million after tax or
$.83 per share) in earnings from discontinued operations. In
addition, the company recorded $18 million in tax charges ($.06 per
share) in earnings from discontinued operations representing taxes
on the difference between the book value and tax basis of the
business.
 
(4) In the first quarter of fiscal 2013, the company incurred
transaction costs of $10 million ($7 million after tax or $.02 per
share) associated with the acquisition of Bolthouse Farms, which
closed on August 6, 2012. These costs were included in earnings from
continuing operations.
 
The following tables reconcile financial information, presented in
accordance with GAAP, to financial information excluding certain
transactions:
   
Three Months Ended
(millions, except per share amounts) April 27, 2014   April 28, 2013 Percent Change
Gross margin, as reported $ 676 $ 706
Add: Restructuring-related costs (1) 20
Add: Pension settlement charge (2)   18      
Adjusted Gross margin $ 694   $ 726   (4 )%
Adjusted Gross margin percentage 35.2 % 37.0 %
Earnings before interest and taxes, as reported $ 292 $ 257
Add: Restructuring charges and related costs (1) 21
Add: Pension settlement charge (2)   18      
Adjusted Earnings before interest and taxes $ 310   $ 278   12 %
Interest, net, as reported $ 30   $ 31  
Adjusted Earnings before taxes $ 280   $ 247  
Taxes on earnings, as reported $ 79 $ 59
Add: Tax benefit from restructuring charges and related costs (1) 7
Add: Tax benefit from pension settlement charge (2)   7      
Adjusted Taxes on earnings $ 86   $ 66  
Adjusted effective income tax rate 30.7 % 26.7 %
Earnings from continuing operations, as reported $ 183 $ 167
Deduct: Net loss from noncontrolling interests   (1 )   (2 )
Earnings from continuing operations attributable to Campbell Soup
Company, as reported
$ 184 $ 169
Add: Net adjustment from restructuring charges and related costs (1) 14
Add: Net adjustment from pension settlement charge (2)   11      
Adjusted Earnings from continuing operations attributable to
Campbell Soup Company
$ 195   $ 183   7 %
Earnings from discontinued operations, as reported $   $ 12  
Adjusted Net earnings attributable to Campbell Soup Company $ 195   $ 195   %
Diluted earnings per share – continuing operations attributable
to Campbell Soup Company, as reported
$ .58 $ .53
Add: Net adjustment from restructuring charges and related costs (1) .04
Add: Net adjustment from pension settlement charge (2)   .03      
Adjusted Diluted earnings per share – continuing operations
attributable to Campbell Soup Company*
$ .62   $ .58   7 %
Diluted earnings per share – discontinued operations, as reported $   $ .04  
Diluted net earnings per share attributable to Campbell Soup
Company, as reported
$ .58 $ .57
Add: Net adjustment from restructuring charges and related costs (1) .04
Add: Net adjustment from pension settlement charge (2)   .03      
Adjusted Diluted net earnings per share attributable to Campbell
Soup Company*
$ .62   $ .62   %
*The sum of the individual per share amounts may not add due to
rounding.
 
   
Year-to-Date
(millions, except per share amounts) April 27, 2014   April 28, 2013 Percent Change
Gross margin, as reported $ 2,267 $ 2,289
Add: Restructuring-related costs (1) 2 81
Add: Pension settlement charge (2)   18      
Adjusted Gross margin $ 2,287   $ 2,370   (4 )%
Adjusted Gross margin percentage 35.6 % 37.4 %
Earnings before interest and taxes, as reported $ 958 $ 902
Add: Restructuring charges and related costs (1) 37 112
Add: Pension settlement charge (2) 18
Add: Loss on foreign exchange forward contracts (3) 9
Add: Acquisition transaction costs (4)       10  
Adjusted Earnings before interest and taxes $ 1,022   $ 1,024   %
Interest, net, as reported $ 89   $ 95  
Adjusted Earnings before taxes $ 933   $ 929  
Taxes on earnings, as reported $ 278 $ 242
Add: Tax benefit from restructuring charges and related costs (1) 11 41
Add: Tax benefit from pension settlement charge (2) 7
Add: Tax benefit from loss on foreign exchange forward contracts (3) 3
Deduct: Tax expense associated with sale of business (3) (7 )
Add: Tax benefit from acquisition transaction costs (4)       3  
Adjusted Taxes on earnings $ 292   $ 286  
Adjusted effective income tax rate 31.3 % 30.8 %
Earnings from continuing operations, as reported $ 591 $ 565
Deduct: Net loss from noncontrolling interests   (9 )   (7 )
Earnings from continuing operations attributable to Campbell Soup
Company, as reported
$ 600 $ 572
Add: Net adjustment from restructuring charges and related costs (1) 26 71
Deduct: Restructuring charges attributable to noncontrolling
interest (1)
(5 )

Add: Net adjustment from pension settlement charge (2) 11
Add: Net adjustment from loss on foreign exchange forward contracts
(3)
6
Add: Tax expense associated with sale of business (3) 7
Add: Net adjustment from acquisition transaction costs (4)       7  
Adjusted Earnings from continuing operations attributable to
Campbell Soup Company
$ 645   $ 650   (1 )%
Earnings from discontinued operations, as reported $ 81   $ 44  
Adjusted Net earnings attributable to Campbell Soup Company $ 726   $ 694   5 %
Diluted earnings per share – continuing operations attributable
to Campbell Soup Company, as reported
$ 1.90 $ 1.80
Add: Net adjustment from restructuring charges and related costs
attributable to Campbell Soup Company (1)
.07 .22
Add: Net adjustment from pension settlement charge (2) .03
Add: Net adjustment from loss on foreign exchange forward contracts
(3)
.02
Add: Tax expense associated with sale of business (3) .02
Add: Net adjustment from acquisition transaction costs (4)       .02  
Adjusted Diluted earnings per share – continuing operations
attributable to Campbell Soup Company*
$ 2.04   $ 2.05   %
Diluted earnings per share – discontinued operations, as reported $ .26   $ .14  
Diluted net earnings per share attributable to Campbell Soup
Company, as reported
$ 2.16 $ 1.94
Add: Net adjustment from restructuring charges and related costs
attributable to Campbell Soup Company (1)
.07 .22
Add: Net adjustment from pension settlement charge (2) .03
Add: Net adjustment from loss on foreign exchange forward contracts
(3)
.02
Add: Tax expense associated with sale of business (3) .02
Add: Net adjustment from acquisition transaction costs (4)       .02  
Adjusted Diluted net earnings per share attributable to Campbell
Soup Company*
$ 2.30   $ 2.19   5 %
*The sum of the individual per share amounts may not add due to
rounding.
 
 
Year Ended
(millions, except per share amounts) July 28, 2013
Gross margin, as reported $ 2,912
Add: Restructuring-related costs (1)   91  
Adjusted Gross margin $ 3,003  
Adjusted Gross margin percentage 37.3 %
Earnings before interest and taxes, as reported $ 1,080
Add: Restructuring charges and related costs (1) 142
Add: Acquisition transaction costs (4)   10  
Adjusted Earnings before interest and taxes $ 1,232  
Interest, net, as reported $ 125  
Adjusted Earnings before taxes $ 1,107  
Taxes on earnings, as reported $ 275
Add: Tax benefit from restructuring charges and related costs (1) 52
Add: Tax benefit from acquisition transaction costs (4)   3  
Adjusted Taxes on earnings $ 330  
Adjusted effective income tax rate 29.8 %
Earnings from continuing operations, as reported $ 680
Deduct: Net loss from noncontrolling interests   (9 )
Earnings from continuing operations attributable to Campbell Soup
Company
$ 689
Add: Net adjustment from restructuring charges and related costs (1) 90
Add: Net adjustment from acquisition transaction costs (4)   7  
Adjusted Earnings from continuing operations attributable to
Campbell Soup Company
$ 786  
Earnings (loss) from discontinued operations, as reported $ (231 )
Add: Net impairment on European business (3) 263
Add: Tax expense on book and tax differences (3)   18  
Adjusted Earnings from discontinued operations $ 50  
Adjusted Net earnings attributable to Campbell Soup Company $ 836  
Diluted earnings per share – continuing operations attributable
to Campbell Soup Company, as reported
$ 2.17
Add: Net adjustment from restructuring charges and related costs (1) .28
Add: Net adjustment from acquisition transaction costs (4)   .02  
Adjusted Diluted earnings per share – continuing operations
attributable to Campbell Soup Company*
$ 2.48  
Diluted earnings (loss) per share – discontinued operations, as
reported
$ (.73 )
Add: Impairment on European business (3) .83
Add: Tax expense on book and tax differences (3)   .06  
Adjusted Diluted earnings per share – discontinued operations $ .16  
Diluted net earnings per share attributable to Campbell Soup
Company, as reported
$ 1.44
Add: Net adjustment from restructuring charges and related costs (1) .28
Add: Net adjustment from acquisition transaction costs (4) .02
Add: Net impairment on European business (3) .83
Add: Tax expense on book and tax differences (3)   .06  
Adjusted Diluted net earnings per share attributable to Campbell
Soup Company*
$ 2.64  
*The sum of the individual per share amounts may not add due to
rounding.
 

Source: Campbell Soup Company

Campbell Soup Company
Carla Burigatto (Media)
856-342-3737
carla_burigatto@campbellsoup.com
or
Jennifer
Driscoll (Analysts/Investors)
856-342-6081
jennifer_driscoll@campbellsoup.com