Campbell Profits Slip 3.8%

NEW YORK - Nov 20-/06 - SNS -- Campbell Soup Company reported net earnings of U.S. $291 million on sales of 2,153 million during the first quarter ending October 20, compared to a net of $302 million on sales of 2,002 million during the same three-month period last year.

The company said sales for U.S. Soup, Sauces and Beverages were $1,052 million, up 8 percent from $970 million a year ago.

Operating earnings were $322 million compared with $288 million in the prior-year period. Earnings in the prior-year period included an $8 million gain from a change in the method of accounting for inventory. Operating earnings were driven by higher selling prices, increased volume, and productivity gains, partially offset by cost inflation. Total soup sales for the quarter increased 10 percent.

Beverage sales grew at a double-digit rate, driven by the introduction of "V8 V-Fusion," a 100% juice beverage that provides a full serving of vegetables and fruit, as well as the strong performance of "V8" vegetable juices. Launched in the second quarter of fiscal 2006, "V8 V-Fusion" continues to be favorably received by the trade and consumers.

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