Campbell Reports Fourth Quarter and Fiscal 2002 Results.Business Editors CAMDEN Camden, borough, Greater London, England Camden, inner borough (1991 pop. 170,500) of Greater London, SE England. Within the borough, residential Hampstead is popular with writers and artists. , N.J.--(BUSINESS WIRE)--Sept. 5, 2002 Campbell Soup Company Campbell Soup Company (NYSE: CPB) (also known as Campbell's) is a well-known American producer of canned soups and related products. Campbell's products are sold in 120 countries around the world. It is headquartered in Camden, New Jersey. (NYSE NYSE See: New York Stock Exchange :CPB CPB see cardiopulmonary bypass. CPB Cardiopulmonary bypass. See Port-Access cardiopulmonary bypass. ) today reported diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of for the fourth quarter ended July July: see month. 28, 2002 of $.13, even with last year. Before the costs of the previously announced Australian Australian pertaining to or originating in Australia. Australian bat lyssavirus disease see Australian bat lyssavirus disease. Australian cattle dog a medium-sized, compact working dog used for control of cattle. manufacturing reconfiguration, diluted earnings per share were $.14, versus $.15 a year ago. Last year's fourth quarter results included approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $.03 dilutive impact from the acquisition of several European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. dry soup soup, liquid food in which different kinds of solid food have been cooked, e.g., meat, fish, fowl, vegetables, cereals, or fruit. Many soups are peculiar to certain localities, e.g. and sauce businesses. For the quarter, net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight increased 5 percent to $1,223 million. The following factors drove the increase: base volume and mix was up 4 percent, price added 1 percent, promotions reduced sales 2 percent, currency added 2 percent. For the quarter, wet soup shipments compared to a year ago were up 3 percent in the U.S. and 1 percent outside the U.S., resulting in a 2 percent increase worldwide. As reported, net earnings were $55 million, an increase of 6 percent versus $52 million a year earlier. Excluding the impact of the Australian reconfiguration, net earnings for the quarter were $59 million versus $62 million a year ago. The net earnings decline resulted from planned increases in marketing and infrastructure investments across major businesses. Total marketing investment for the quarter was up 17 percent before the impact of currency. For fiscal 2002, the company reported diluted earnings per share of $1.28. Net earnings were $525 million. Excluding costs associated with the Australian manufacturing reconfiguration, diluted earnings per share were $1.31, compared to $1.58 for the prior year. The earnings decrease was directly related to planned increases in marketing and infrastructure investment in support of the company's multi-year Transformation Plan. Net sales for the year increased 6 percent to $6,133 million. The following factors drove the increase: -- Weakness in the UK in both soup and sauces offset gains in soup sales in Belgium and France. -- In Australia, Campbell's wet soup share continued to rise, as new product launches under the "Country Ladle," "Chunky" and "Velish" brands proved successful. Campbell's "Real Stock" broth sales were also up significantly. Worldwide wet soup shipments increased 1 percent, with soup outside the U.S. up 2 percent and U.S. wet soup shipments up 1 percent. For the year, ready-to-serve soup shipments rose 9 percent, while condensed con·dense v. con·densed, con·dens·ing, con·dens·es v.tr. 1. To reduce the volume or compass of. 2. To make more concise; abridge or shorten. 3. Physics a. soup shipments declined 5 percent. In line with previously announced plans, total marketing spending was up 15 percent before the impact of currency and the European acquisition, and up 20 percent including the European acquisition. In addition, the company reported another year of strong free cash flow of $748 million. Douglas Douglas, city, Isle of Man Douglas, city (1991 pop. 19,950), capital of the Isle of Man, Great Britain. It is a popular resort, connected by rail to Ramsey and Port Erin, on the Irish Sea. Tourism is the chief industry. R. Conant Co·nant , James Bryant 1893-1978. American educator who was president of Harvard University (1933-1953) and served as ambassador to West Germany (1955-1957). , Campbell's President and Chief Executive Officer, said, "We have made substantial progress in the first year of our Transformation Plan. We significantly increased our investment in marketing and infrastructure to put Campbell Campbell, city, United States Campbell, city (1990 pop. 36,048), Santa Clara co., W Calif., in the fertile Santa Clara valley; founded 1885, inc. 1952. back on track. These marketing investments produced solid growth in many of our businesses, including ready-to-serve soups A list of different types of soup/stew. Broths (stocks, bouillons) Strained liquid from cooking things in water Consommés Clarified meat or fish broth
If making vegetable juice at home, a juicer that can process vegetables will be needed. , 'Prego' pasta While the only basic difference between these names is the shape of the pasta, each pasta is typically matched with a particular sauce based on cooking time, consistency, ability to hold sauce, ease of eating, etc. sauces, 'Pace' Mexican Mexican named after or originating in Mexico. Mexican axolotl see ambystomamexicanum. Mexican beaded lizard (Heloderma horridum sauces, 'Arnott's' biscuits and 'Pepperidge Farm' cookies and breads. We recognize that the increased marketing efforts against our condensed soup business had limited impact. However, it's it's 1. Contraction of it is. 2. Contraction of it has. See Usage Note at its. it's it is or it has it's be ~have important to note that we are only now realizing the first of many planned technology-driven product and package improvements in condensed soup. Overall, we significantly advanced our quality improvement agenda and we delivered strong productivity gains. In sum, we promised that we would take significant steps to build a platform to support profitable growth - and we have." Conant continued, "As we enter the second year of our Transformation Plan, our business is poised for growth, but not yet at the levels to which we aspire as·pire intr.v. as·pired, as·pir·ing, as·pires 1. To have a great ambition or ultimate goal; desire strongly: aspired to stardom. 2. . While we expect solid sales growth in fiscal 2003, we will continue to invest for the long term in brand-building, innovation, quality and infrastructure." For fiscal year 2003, the company expects earnings per share to be approximately $1.35, excluding the impact of adopting new accounting rules related to goodwill and other intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. . Under these rules, amortization of these assets will cease. The company is continuing to evaluate the impact of the new accounting rules and expects that the adoption will result in an increase in earnings per share of approximately $.12 to $.13 annually. For the first quarter, given the unusual events of the first quarter last year, notably the impact of September September: see month. 11, the company expects earnings to be flat compared with last year, excluding the impact of new accounting rules related to goodwill and other intangible assets. A summary of fiscal 2002 results by segment follows: North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. Soup and Away From Home Sales of $2,524 million were flat compared with a year ago. Operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before of $624 million were down 19 percent, reflecting increased marketing and infrastructure investments. For the year, as previously noted, U.S. soup shipments were up 1 percent. Further details include: -- Weakness in the UK in both soup and sauces offset gains in soup sales in Belgium and France. -- In Australia, Campbell's wet soup share continued to rise, as new product launches under the "Country Ladle," "Chunky" and "Velish" brands proved successful. Campbell's "Real Stock" broth sales were also up significantly. North America Sauces and Beverages Sales were up 2 percent to $1,182 million, behind strong sales of "Prego Prego® is a trade mark brand name pasta sauce of Campbell Soup Company. It was introduced in 1981 internationally and is based on a family recipe of one of the chefs. Eventually they became the number one selling dry grocery product of the decade. " Pasta Bake sauces, "Pace" Mexican sauces and "V8" vegetable juices, partially offset by a sales decline in "V8 Splash" juice drinks. Operating profits Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. declined 20 percent to $236 million. The earnings decline was primarily the result of planned marketing increases behind the "Prego" franchise, "Pace" Mexican sauces and "V8" vegetable juices. -- Weakness in the UK in both soup and sauces offset gains in soup sales in Belgium and France. -- In Australia, Campbell's wet soup share continued to rise, as new product launches under the "Country Ladle," "Chunky" and "Velish" brands proved successful. Campbell's "Real Stock" broth sales were also up significantly. Biscuits and Confectionery confectionery, delicacies or sweetmeats that have sugar as a principal ingredient, combined with coloring matter and flavoring and often with fruit or nuts. In the United States it is usually called candy, in Great Britain, sweets or boiled sweets. Sales increased 4 percent to $1,507 million; before the impact of currency, sales grew 5 percent. Sales were up in all three businesses - Arnotts Arnotts can refer to;
n. 1. One who makes or sells chocolate. 2. A place where chocolate is made or sold. [French, from chocolat, chocolate, from Spanish chocolate . Excluding the impact of the Australian reconfiguration, earnings declined 8 percent to $195 million. These results were driven by planned marketing and infrastructure investments. -- Weakness in the UK in both soup and sauces offset gains in soup sales in Belgium and France. -- In Australia, Campbell's wet soup share continued to rise, as new product launches under the "Country Ladle," "Chunky" and "Velish" brands proved successful. Campbell's "Real Stock" broth sales were also up significantly. International Soup and Sauces International Soup and Sauces sales increased 46 percent to $920 million compared to $632 million a year ago. Operating earnings increased to $92 million compared to $51 million a year ago. These results were driven by the European acquisition, which was completed May 4, 2001. Sales on the base business were down 1 percent and operating earnings declined significantly. These results were due to sales softness in the United Kingdom business and increases in marketing and infrastructure investments to support long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. growth. The recently acquired European dry soup and sauces business continues to meet sales and earnings expectations. -- Weakness in the UK in both soup and sauces offset gains in soup sales in Belgium and France. -- In Australia, Campbell's wet soup share continued to rise, as new product launches under the "Country Ladle," "Chunky" and "Velish" brands proved successful. Campbell's "Real Stock" broth sales were also up significantly. Accounting Change In the first quarter, the company adopted new accounting standards related to the recognition, measurement and income statement classification of certain consumer and trade promotional expenses Noun 1. promotional expense - the cost of promoting a product business expense, trade expense - ordinary and necessary expenses incurred in a taxpayer's business or trade , such as coupon A certificate evidencing the obligation to pay an installment of interest or a dividend that must be cut and presented to its issuer for payment when it is due. Coupons are usually attached to a document, such as a promissory note, bond, share of stock, or a bearer redemption The liberation of an estate in real property from a mortgage. Redemption is the process by which land that has been mortgaged or pledged is bought back or reclaimed. It is accomplished through a payment of the debt owed or a fulfillment of the other conditions. costs, cooperative cooperative Organization owned by and operated for the benefit of those using its services. Cooperatives have been successful in such fields as the processing and marketing of farm products and the purchasing of other kinds of equipment and raw materials, and in the advertising programs and in-store display incentives. As a result, the following reclassifications were made to the fourth quarter and fiscal 2001 financial statements: net sales were reduced by $166 million and $893 million, respectively; cost of products sold was reduced by $4 million and $14 million, respectively; and selling, general and administrative expenses were reduced by $162 million and $879 million, respectively. Conference Call The company will host a conference call to discuss these results on September 5, 2002 at 8:30 a.m. Eastern Standard Time. U.S. participants may access the call at 1-888-282-1678 and non-U non-U adj. Chiefly British Not characteristic of the upper class, especially in language usage. [non- + U2. .S. participants at 1-630-395-0481. Participants should call at least five minutes prior to the starting time Noun 1. starting time - the time at which something is supposed to begin; "they got an early start"; "she knew from the get-go that he was the man for her" commencement, get-go, offset, outset, showtime, start, kickoff, beginning, first . The passcode is Campbell Soup. The conference leader is Len Griehs. The call will also be broadcast live over the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the at http://www.campbellsoup.com and can be accessed by clicking on the Webcast banner Same as banner ad. 1. banner - The title page added to printouts by most print spoolers. Typically includes user or account ID information in very large character-graphics capitals. . A recording of the call will be available approximately two hours after it is completed through midnight September 9, 2002 at 1-800-759-1940 or 1-402-998-0471. Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. This release contains "forward-looking statements" which reflect the company's current expectations about its future plans and performance, including statements concerning marketing investments and earnings. These forward-looking statements rely on a number of assumptions and estimates which could be inaccurate and which are subject to risks and uncertainties. Actual results could vary materially from those anticipated or expressed in any forward-looking statement made by the company. Please refer to the company's most recent Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and subsequent filings for a further discussion of these risks and uncertainties. The company disclaims any obligation or intent to update the forward-looking statements in order to reflect events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or after the date of this release. About Campbell Soup Company Campbell Soup Company is a global manufacturer and marketer of high quality soup, sauces, beverage, biscuits, confectionery and prepared food products. The company owns a portfolio of more than 20 market-leading businesses each with more than $100 million in sales. They include "Campbell's" soups worldwide, "Erasco" soups in Germany Germany (jûr`mənē), Ger. Deutschland, officially Federal Republic of Germany, republic (2005 est. pop. 82,431,000), 137,699 sq mi (356,733 sq km). and "Liebig Lie·big , Baron Justus von 1803-1873. German chemist who made a number of contributions to organic chemistry and pioneered laboratory-based scientific education (1826). " soups in France, "Pepperidge Farm" cookies and crackers, "V8" vegetable juices, "V8 Splash" juice beverages, "Pace" Mexican sauces, "Prego" pasta sauces, "Franco-American Fran·co-A·mer·i·can n. An American of French or French-Canadian descent. adj. 1. Of or relating to the Franco-Americans. 2. " canned pastas and gravies, "Swanson" broths, "Homepride" sauces in the United Kingdom, "Arnott's" biscuits in Australia and "Godiva" chocolates around the world. The company also owns dry soup and sauce businesses in Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). under the
"Batchelors For unrelated subjects with similar spelling see Bachelor.Batchelors is a brand of predominantly dried food products. The company makes instant soup, in particular Cup A Soup and noodle products such as Super Noodles. ," "Oxo," "Lesieur," "Royco," "Liebig," "Heisse Tasse," "Bla Band" and "McDonnells" brands. The company is ably supported by 24,000 employees worldwide. For more information on the company, visit Campbell's website on the Internet at www.campbellsoup.com. CONTACT: Jerry S Jer·ry n. pl. Jer·ries Chiefly British Slang A German, especially a German soldier. [Alteration of German. . Buckley Buck·ley , William Frank, Jr. Born 1925. American writer and editor known especially for his caustic, polysyllabic wit. (Media) 856/342-6007 Leonard Leon·ard , Ray Charles Known as "Sugar Ray." Born 1956. American boxer who won the 1976 Olympic light welterweight title. He held five world titles as both a welterweight and middleweight between 1979 and 1987. Noun 1. F. Griehs (Analysts) 856/342-6428
CAMPBELL SOUP COMPANY CONSOLIDATED
STATEMENTS OF EARNINGS
(millions, except per share amounts)
THREE MONTHS ENDED
------------------
July July
28, 2002 29, 2001
-------- --------
Net sales $1,223 $1,164
-------- --------
Costs and expenses
Cost of products sold 686 646
Selling, general and
administrative expenses 409 374
Restructuring charge - 10
-------- --------
Total costs and expenses 1,095 1,030
-------- --------
Earnings before interest and taxes 128 134
Interest, net 44 54
-------- --------
Earnings before taxes 84 80
Taxes on earnings 29 28
-------- --------
Net earnings $ 55 $ 52
======== ========
Per share - basic
Net earnings $ .13 $ .13
======== ========
Dividends $.1575 $ .225
======== ========
Weighted average shares outstanding - basic 411 410
======== ========
Per share - assuming dilution
Net earnings $ .13 $ .13
======== ========
Weighted average shares outstanding
- assuming dilution 411 411
======== ========
In fiscal 2002, the company adopted new accounting standards related
to the recognition, measurement and income statement classification of
certain consumer and trade promotional expenses, such as coupon
redemption costs, cooperative advertising programs and in-store
display incentives. As a result, the following reclassifications were
made to the three month period ended July 29, 2001, statement of
earnings: Net sales were reduced by $166; Cost of products sold was
reduced by $4; and Selling, general and administrative expenses were
reduced by $162.
CAMPBELL SOUP COMPANY CONSOLIDATED
STATEMENTS OF EARNINGS
(millions, except per share amounts)
TWELVE MONTHS ENDED
-------------------
July July
28, 2002 29, 2001
-------- --------
Net sales $6,133 $5,771
-------- --------
Costs and expenses
Cost of products sold 3,443 3,132
Selling, general and
administrative expenses 1,705 1,435
Restructuring charge 1 10
-------- --------
Total costs and expenses 5,149 4,577
-------- --------
Earnings before interest and taxes 984 1,194
Interest, net 186 207
-------- --------
Earnings before taxes 798 987
Taxes on earnings 273 338
-------- --------
Net earnings $ 525 $ 649
======== ========
Per share - basic
Net earnings $ 1.28 $ 1.57
======== ========
Dividends $ .63 $ .90
======== ========
Weighted average shares outstanding - basic 410 414
======== ========
Per share - assuming dilution
Net earnings $ 1.28 $ 1.55
======== ========
Weighted average shares outstanding
- assuming dilution 411 418
======== ========
In fiscal 2002, the company adopted new accounting standards related
to the recognition, measurement and income statement classification of
certain consumer and trade promotional expenses, such as coupon
redemption costs, cooperative advertising programs and in-store
display incentives. As a result, the following reclassifications were
made to the twelve month period ended July 29, 2001, statement of
earnings: Net sales were reduced by $893; Cost of products sold was
reduced by $14; and Selling, general and administrative expenses were
reduced by $879.
CAMPBELL SOUP COMPANY CONSOLIDATED
SUPPLEMENTAL SCHEDULE OF SALES AND EARNINGS
(millions, except per share amounts)
THREE MONTHS ENDED
------------------
Sales July July Percent
----- 28, 2002 29, 2001 Change
-------- -------- -------
Contributions:
North America Soup
and Away From Home $ 390 $ 394 -1%
North America Sauces
and Beverages 274 270 1%
Biscuits and Confectionery 343 313 10%
International Soup and Sauces 216 187 16%
------ ------
Total sales $1,223 $1,164 5%
====== ======
Percent
Change
Excluding
Restructuring
Related
Costs (1)
Earnings -------------
--------
Contributions:
North America Soup
and Away From Home $ 71 $ 90 -21% -21%
North America Sauces
and Beverages 56 62 -10% -10%
Biscuits and Confectionery 25 20 25% -9%
International Soup and Sauces 22 4 450% 450%
------ ------
Total operating earnings 174 176 -1% -5%
Unallocated corporate expenses (46) (42)
------ ------
Earnings before interest
and taxes 128 134 -4% -9%
Interest, net (44) (54)
Taxes on earnings (29) (28)
------ ------
Net earnings $ 55 $ 52 6% -5%
====== ======
Net earnings per share
- assuming dilution $ .13 $ .13 0% -7%
====== ======
In fiscal 2002, the company adopted new accounting standards related
to the recognition, measurement and income statement classification of
certain consumer and trade promotional expenses, such as coupon
redemption costs, cooperative advertising programs and in-store
display incentives. As a result, the following reclassifications were
made to the three month period ended July 29, 2001, statement of
earnings: Net sales were reduced by $166; Cost of products sold was
reduced by $4; and Selling, general and administrative expenses were
reduced by $162.
Earnings contributions from Biscuits and Confectionery include the
effect of costs associated with the Australian manufacturing
reconfiguration plan. In fiscal 2002, costs were $6 pre-tax ($4 after
tax or $.01 per share, basic and diluted). In fiscal 2001, costs were
$14 pre-tax ($10 after tax or $.02 per share, basic and diluted).
(1) Percent change is calculated excluding the effect of the
Australian manufacturing reconfiguration costs.
CAMPBELL SOUP COMPANY CONSOLIDATED
SUPPLEMENTAL SCHEDULE OF SALES AND EARNINGS
(millions, except per share amounts)
TWELVE MONTHS ENDED
-------------------
July July Percent
Sales 28, 2002 29, 2001 Change
----- -------- -------- -------
Contributions:
North America Soup
and Away From Home $2,524 $2,532 0%
North America Sauces
and Beverages 1,182 1,161 2%
Biscuits and Confectionery 1,507 1,446 4%
International Soup and Sauces 920 632 46%
------ ------
Total sales $6,133 $5,771 6%
====== ======
Percent
Change
Excluding
Restructuring
Earnings Related
-------- Costs (1)
Contributions: -------------
North America Soup
and Away From Home $ 624 $ 774 -19% -19%
North America Sauces
and Beverages 236 295 -20% -20%
Biscuits and Confectionery 175 197 -11% -8%
International Soup and Sauces 92 51 80% 80%
------ ------
Total operating earnings 1,127 1,317 -14% -14%
Unallocated corporate expenses (143) (123)
------ ------
Earnings before interest
and taxes 984 1,194 -18% -17%
Interest, net (186) (207)
Taxes on earnings (273) (338)
------ ------
Net earnings $ 525 $ 649 -19% -18%
====== ======
Net earnings per share
- assuming dilution $ 1.28 $ 1.55 -17% -17%
====== ======
In fiscal 2002, the company adopted new accounting standards
related to the recognition, measurement and income statement
classification of certain consumer and trade promotional expenses,
such as coupon redemption costs, cooperative advertising programs and
in-store display incentives. As a result, the following
reclassifications were made to the twelve month period ended July 29,
2001, statement of earnings: Net sales were reduced by $893; Cost of
products sold was reduced by $14; and Selling, general and
administrative expenses were reduced by $879.
Earnings contributions from Biscuits and Confectionery include the
effect of costs associated with the Australian manufacturing
reconfiguration plan. In fiscal 2002, costs were $20 pre-tax ($14
after tax or $.03 per share, basic and diluted). In fiscal 2001, costs
were $15 pre-tax ($11 after tax or $.03 per share, basic and diluted).
(1) Percent change is calculated excluding the effect of the
Australian manufacturing reconfiguration costs.
CAMPBELL SOUP COMPANY CONSOLIDATED
BALANCE SHEETS
(millions)
July July
28, 2002 29, 2001
-------- --------
Current assets $1,199 $1,203
Plant assets, net 1,684 1,637
Intangible assets, net 2,503 2,451
Other assets 335 636
-------- --------
Total assets $5,721 $5,927
======== ========
Current liabilities $2,678 $3,120
Long-term debt 2,449 2,243
Nonpension postretirement benefits 319 336
Other liabilities 389 475
Shareowners' equity (114) (247)
-------- --------
Total liabilities and shareowners' equity $5,721 $5,927
======== ========
Total debt $3,645 $4,049
======== ========
Net debt $3,624 $4,025
======== ========
Certain reclassifcations were made to prior year financial statements.
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