Campbell 4th-Quarter Profit Rose 27% Amid Lower Expenses

   By Tess Stynes 
 

Campbell Soup Co.'s (CPB) fiscal fourth-quarter earnings rose 27% as fewer restructuring charges helped lower expenses and improved sales in its U.S. soup business supported modest revenue growth.

The company is in the midst of a turnaround that aims to stabilize its soups and simple meals business, expand internationally and continue to increase sales in the healthy beverages and baked snacks businesses. Campbell recently completed its $1.55 billion acquisition of natural-foods company Bolthouse Farms, expanding Campbell's presence in the growing packaged fresh-foods category.

In the latest quarter, soups sales grew 9%, mostly attributed to the condensed soup business, where sales were up 14%.

U.S. beverage sales were up 3% amid improved volume and a boost from growth in V8 Splash and V8-Fusion beverages.

President and Chief Executive Denise Morrison said, "We generated organic sales growth, with gains across most of our portfolio, including strong sales in U.S. soup and U.S. simple meals. Retailers continue to respond favorably to our new product development, and we have started shipping new products for fiscal 2013 launches."

For the quarter ended July 29, Campbell reported a profit of $127 million, or 40 cents a share, up from $100 million, or 31 cents a share, a year earlier. Excluding acquisition charges, restructuring charges and other items, earnings were down at 41 cents from 43 cents.

Overhead costs declined nearly 2% amid fewer restructuring charges.

Revenue increased by $6 million to $1.61 billion. Excluding currency fluctuations, revenue was up 3%.

Analysts polled by Thomson Reuters most recently projected earnings of 38 cents on revenue of $1.6 billion.

Gross margin fell to 38.5% from 39.8% amid higher commodities costs and promotional spending.

Volume improved 3% while pricing and sales allowances boosted sales by 3%. This was partly offset by the increased promotional spending, which cut 3% from sales.

For the just-started fiscal year, the food company projected per-share earnings of $2.51 to $2.57, including five cents to seven cents from its recent Bolthouse Farms acquisition, on sales growth of 10% to 12%. Analysts polled by Thomson Reuters recently expected earnings of $2.52 and revenue growth of 10% to $8.49 billion.

Shares closed Friday at $35.14 and were inactive premarket. Markets were closed Monday for the Labor Day holiday. The stock is up 12% in the past year.

Write to Tess Stynes at [e-mail]

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