Higher Campbell Soup Profits

NEW YORK - May 21/07 - SNS -- Campbell Soup Company reported net earnings of U.S. $217 million on sales of $1,868 million for the third quarter ending April 29, compared to an after-tax net of $166 million on sales of $1.728 million during the same three-month period last year.

This lifted after tax income for the first nine months of the current fiscal year to $793 million on sales of $6,273 million, compared to a net of $722 million on sales of $5,889 million during the previous fiscal year.

In reporting third quarter earnings, the company said gross margin increased to 41.4% from 40.9% in the prior year with higher selling prices and productivity gains more than offsetting cost inflation.

Gross margins for the first three quarters came in at 42.4%, up from 41.8% last year. The increase stemmed from 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.

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