Campbell Soup Company reported diluted earnings per share for the second quarter ended January 30, 2005 of $.57, even with the year-ago quarter.
For the second quarter, net sales rose 6% to $2.2 billion, reflecting the following factors: Volume and mix added 4%, Price and sales allowances added 1%, Increased promotional spending subtracted 1%, and Currency added 2%.
Net earnings for the second quarter of fiscal 2005 were $235 million, even with a year earlier. Diluted earnings per share for the first half of fiscal 2005 were $1.13, up 5% versus $1.08 a year ago.
Net sales were $4.3 billion for the first half of fiscal 2005, an increase of 8% compared with the year-ago period, reflecting the following factors: Volume and mix added 6%, Price and sales allowances added 1%, Increased promotional spending subtracted 1%, and Currency added 2%
For the first half of fiscal 2005, the company reported net earnings of $465 million versus $446 million a year earlier, an increase of 4%.
Douglas R. Conant, Campbell’s President and Chief Executive Officer, said, “At the halfway mark in the year, we are pleased with our overall company performance. Our U.S. Soup business increased sales 6 percent for the first half of fiscal 2005, with condensed, ready-to-serve, and broth all experiencing growth. We are especially pleased with the strong sales growth in condensed soup, which is up 7 percent for the first half, the best performance in many years. Our continuing investment in product quality, new products and packaging, improved marketing, and retail execution is driving this performance. While the cost of these investments and materials inflation has impacted our U.S. Soup profit margins, our recently announced price increase, effective at the end of February, will help to improve the profitability of U.S. Soup.”
Conant continued, “The balance of our portfolio has delivered excellent performance for the first half. Particularly noteworthy have been the outstanding top and bottom line performances of Pepperidge Farm and Away From Home in the U.S. From an overall financial perspective, we continue to strengthen our balance sheet with the reduction of our debt, leveraging our strong cash flow generation.”
The company confirmed its fiscal 2005 guidance for earnings per share to increase between 5 and 7%, excluding restructuring charges, from the adjusted fiscal year 2004 base of $1.58.
Murdok | Breaking eBusiness News
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