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Campbell Soup Q2 profit down to $190 million

Staff writer |
Campbell Soup Company reported net earnings of $190 million for the second quarter, down from $205 million in the prior year.

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In share prices, for the quarter ended January 27, 2013, the company reported $0.60 per share, compared with $0.64 per share, in the prior year.

"Despite weakness in our U.S. Beverages and North America Foodservice businesses, our first half business results were positive. Although profits in U.S. Beverages improved, we have more work to do to drive the top line and continue to stabilize profit in a sluggish shelf-stable juice category. Halfway through our fiscal year, we are making progress against our plans to return Campbell to sustainable, profitable net sales growth," said Denise Morrison, president and chief executive officer.

Within U.S. Simple Meals, Campbell saw growth in U.S. Soup. Global Baking and Snacking business has benefitted from innovation in both core brands and new products, plus increased distribution and merchandising. Gains in snack crackers, cookies and fresh bakery products drove sales and earnings at Pepperidge Farm. Arnott’s sales increased with solid performance in Australia and Indonesia. Bolthouse Farms business delivered solid results in the fresh carrots, beverages and salad dressings categories.

The company confirmed its previous fiscal 2013 guidance. Campbell expects to grow sales between 10 and 12 percent, adjusted EBIT between 4 and 6 percent and adjusted EPS between 3 and 5 percent. The company expects adjusted EPS to be between $2.51 and $2.57.

In fiscal 2013, Campbell expects Bolthouse Farms to contribute approximately $750 million to sales and add $0.05 to $0.07 to adjusted EPS, including the impact of the suspension of Campbell’s strategic share repurchase program.

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