Campbell Q4 Profit Slump

NEW YORK - Sep 11/06 - SNS -- Campbell Soup Company reported net earnings of U.S. $44 million on sales of $1,454 million during the fourth quarter ending July 30, compared to a net of $96 million on sales of $1,404 million during the same three-month period last year.

This lifted net earnings for the 2006 fiscal year to $766 million on sales of $7,343 million, compared to a net of $707 million on sales of $7,072 million during the previous fiscal year.

Campbells attributed the decline in fourth quarter earnings to the sale of its U.K. and Irish businesses. The operating results for these businesses are reflected as discontinued operations, resulting in $61 million of expenses in discontinued operations related to the divestiture of these businesses. These expenses included $7 million ($5 million after-tax) of costs associated with the sale and $56 million in tax expense representing taxes on the difference between the book value and tax basis of the assets.

For the fourth quarter of fiscal 2006, sales from continuing operations rose 4% to $1,454 million, reflecting the following factors: volume and mix added 1%; price and sales allowances added 3%; increased promotional spending subtracted 1%; and currency added 1%.

In fiscal 2006, the company reported sales from continuing operations of $7,343 million, an increase of 4% compared to the year-ago period, reflecting the following factors: volume and mix added 1%; and price and sales allowances added 3%.

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