Campbell Soup Profits Up

NEW YORK - Nov 22/04 - SNS -- Campbell Soup Company reported net earnings of $230 million on sales of $2,091 million during the quarter ending October 31, an improvement on the net earnings of $211 million on sales of $1,909 million during the same quarter last year.

The company said sales for its U.S. Soup, Sauces and Beverages were $994 million, a 10% increase compared with the year-ago quarter. Operating earnings of $275 million were up 4%, as higher sales volumes were partially offset by increased trade promotion and advertising, and higher materials costs.

Sales for Baking and Snacking were $449 million, an 8% increase compared with the year-ago quarter. Operating earnings increased 10% to $46 million. The impact of higher net sales, currency and productivity improvements were partially offset by commodity cost inflation.

Sales for International Soup and Sauces were $416 million, an 8% increase compared to the first quarter of fiscal 2004. Operating earnings increased 4% to $55 million, due to the positive impact of currency.

Sales in the company's other divisions grew 12% to $232 million compared to the same period a year ago. Operating earnings of $22 million were flat versus the prior year, as growth in Away From Home was offset by an earnings decline at Godiva, reflecting increased spending in support of product launches and the new "GoDiva" advertising campaign, ahead of the primary sales seasons.

Subscribers can read the full text of the article by Clicking here