Campbell Reports Fourth Quarter and Fiscal 2004 Earnings.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. -- 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 August 1, 2004 of $.14, compared to $.18 recorded in the year-ago quarter. Comparability of earnings per share in the quarter was impacted by a gain of $.02 related to the sale of an idle manufacturing plant in California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). and a charge of $.05 related to the restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). announced in June June: see month. . Excluding these two items, earnings were $.17 per share. 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 decreased 2 percent to $1,433 million, reflecting the following factors: --Volume and mix added 4 percent --Price added 1 percent --Increased promotional spending subtracted 2 percent --Currency added 2 percent --One less week in the quarter subtracted 7 percent Excluding the impact of one less week in the quarter compared to fiscal 2003, net sales were up 5 percent. Net earnings for the fourth quarter of fiscal 2004 were $59 million versus $74 million a year earlier. This year's fourth quarter includes a $6 million after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. gain from the sale of the idle manufacturing site and a $22 million after-tax charge related to the restructuring announced by the company in June. For the fiscal 2004 year, the company reported diluted earnings per share of $1.57 compared to $1.52 for the prior year, before the cumulative effect of accounting change. In fiscal 2004, comparability of net earnings was impacted by a $.02 per share gain from the settlement of a class action suit, a $.02 per share gain from the sale of property, and a $.05 per share charge for restructuring. Excluding these items, earnings were $1.58 per share. For the year, net sales increased 6 percent to $7,109 million, reflecting the following factors: --Volume and mix added 2 percent --Price added 2 percent --Currency added 4 percent --One less week in the fiscal year subtracted 2 percent Excluding the impact of one less week in the year compared to fiscal 2003, net sales were up 8 percent. Net earnings for fiscal 2004 were $647 million versus $626 million for the prior year, before the cumulative effect of accounting change. In fiscal 2004, net earnings included a $10 million after-tax gain associated with the class action suit, a $6 million after-tax gain from the sale of property, and a $22 million after-tax charge for the restructuring. In addition, the company reported cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses of $744 million compared with $873 million last year. This decline was primarily due to higher working capital requirements Capital requirements Financing required for the operation of a business, composed of long-term and working capital plus fixed assets. of approximately $150 million and a $50 million contribution to a U.S. pension fund, partially offset by an increase in earnings. Capital expenditures for fiscal 2004 were $288 million, slightly higher than the $283 million of a year ago. 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, "Our sales on a comparable basis in the fourth quarter of fiscal 2004 were strong and we have good momentum as we begin the new fiscal year. We have demonstrated that we can grow the top line across our key segments, including soup, beverages, 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. . As anticipated, in the U.S. our investment this year in quality, convenience packaging, and more focused marketing helped us to maintain substantial growth in our ready-to-serve soup business and to moderate the decline in 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 sales." Conant continued, "The restructuring we announced in June will enable us to achieve tighter control of costs and will help to improve margins. While we still have challenges to address, our plans to deliver quality growth will enable us to win with our customers and consumers in 2005 and beyond." For fiscal year 2005, the company expects earnings per share to increase between 5 and 7 percent, excluding restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. , from the adjusted fiscal year 2004 base of $1.58. Summary of Fiscal 2004 Results by Segment 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 for North America Soup and Away From Home were $2,699 million, a 4 percent increase compared with a year ago. A breakdown of the change in sales follows: --Volume and mix added 1 percent --Price added 3 percent --Increased promotional spending subtracted 1 percent --Currency added 2 percent --One less week in the fiscal year subtracted 1 percent Excluding the impact of one less week in the year, net sales rose 5 percent compared to fiscal 2003. Further details of sales results include the following: --U.S. ready-to-serve soup sales for fiscal 2004 increased 8 percent on a shipment increase of 6 percent. Investments in higher quality products, convenience packaging and integrated marketing are driving top line growth. The "M'm! M'm! Good! To Go" convenience platform was the primary driver of sales growth. This includes Campbell's "Soup At Hand" sippable soups, which more than doubled sales versus a year ago, as well as "Campbell's Chunky chunk·y adj. chunk·i·er, chunk·i·est 1. Short and thick; stocky. 2. Containing small thick pieces: chunky peanut butter; chunky soup. " and "Campbell's Select" soups in microwavable mi·cro·wave n. 1. A high-frequency electromagnetic wave, one millimeter to one meter in wavelength, intermediate between infrared and short-wave radio wavelengths. 2. Informal A microwave oven. tr.v. bowls. --U.S. condensed soup sales declined 2 percent for the year on shipment declines of 4 percent. "Campbell's" condensed eating soups grew sales, led by "Campbell's" Chicken Noodle soup Noodle soup refers to a variety of dishes with noodles served in stock and other ingredients. The dish is an Asian staple. Varieties China and Taiwan There are a myriad of noodle soup dishes originating in China, and many of these are eaten in, or adapted in , which delivered strong performance driven by an integrated kids marketing program. This growth was offset by declines in cooking soups. Fiscal 2004 saw substantial progress in the installation of new gravity-feed shelving shelv·ing n. 1. Shelves considered as a group. 2. Material for shelves. 3. An incline; a slope. shelving Noun 1. material for shelves 2. for condensed soup. Over 8,700 units are now installed, and plans call for an additional 2,300 units to be in place this fall. --U.S. broth broth liquid media for culturing microorganisms. cooked meat broth a medium useful for culturing anaerobic bacteria. enrichment broth one modified to permit growth by selected bacteria. sales increased 6 percent, while shipments increased 5 percent, with gains in both cans and aseptically packaged "Swanson" broth. --For the balance of the segment, sales in Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of increased due to currency, while Away From Home sales grew slightly, primarily due to strong sales of refrigerated re·frig·er·ate tr.v. re·frig·er·at·ed, re·frig·er·at·ing, re·frig·er·ates 1. To cool or chill (a substance). 2. To preserve (food) by chilling. soups. For fiscal 2004, 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 $602 million were down 5 percent compared to the previous year. This decline included a $7 million restructuring charge, which negatively impacted earnings by 1 percent. Earnings were also negatively impacted by costs associated with quality improvements, higher inflation, trade promotion, and product mix. These were partially offset by higher selling prices and productivity improvements. North America Sauces and Beverages North America Sauces and Beverages sales were even with last year at $1,246 million. A breakdown of the change in sales follows: --Volume and mix added 1 percent --Reduced promotional spending added 1 percent --One less week in the fiscal year subtracted 2 percent Excluding the impact of one less week in the year, net sales rose 2 percent compared to fiscal 2003. Further details of sales results include the following: --Campbell's beverage businesses had an outstanding year, led by sales growth of "V8" vegetable juice Vegetable juice is a popular drink all over the world. Vegetable juice is an alternative to fruit juice. Most commercial brands do however contain a large amount of sodium. If making vegetable juice at home, a juicer that can process vegetables will be needed. . Stronger advertising, more efficient trade spending, and favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. consumer trends toward wellness enabled "V8" vegetable juice to achieve record sales levels. "Campbell's" Organic Tomato Juice was launched as the company's first certified See certification. organic product. --"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 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. sauce sales declined primarily due to the impact of lower sales in the dry pasta category. Performance improved in the second half of the year. --"Pace" Mexican Mexican named after or originating in Mexico. Mexican axolotl see ambystomamexicanum. Mexican beaded lizard (Heloderma horridum sauces were even with the previous year. --Mexico achieved good sales growth. For fiscal 2004, operating earnings of $268 million were down 7 percent compared to the previous year. The decline in operating earnings included a restructuring charge of $3 million, which accounts for 1 percent of the decrease. Other factors in the decline included higher costs associated with new product introductions and inflation, partially offset by productivity improvements. Biscuits and Confectionery Sales for Biscuits and Confectionery were $1,982 million, a 12 percent increase compared with a year ago. A breakdown of the change in sales follows: --Volume and mix added 4 percent --Price added 2 percent --Increased promotional spending subtracted 1 percent --Acquisitions added 2 percent --Currency added 7 percent --One less week in the fiscal year subtracted 2 percent Excluding the impact of one less week in the year, net sales rose 14 percent compared to fiscal 2003. Further details of sales results include the following: --The Pepperidge Farm Pepperidge Farm was founded in 1937 by Margaret Rudkin, who named the brand for a property her family owned in Connecticut (which itself was named for the pepperidge tree, Nyssa sylvatica). In 1961, the company was purchased by Campbell's. "Goldfish" snacks business continued its strong growth driven by gains in mass merchandisers and the introduction of new varieties, including new "Goldfish" sandwich Sandwich, city, Canada Sandwich, Ont., Canada, part (since 1935) of the city of Windsor. Sandwich, town, England Sandwich, town (1991 pop. 4,184), Kent, SE England, on the Stour River. snackers and trans-fat free "Goldfish" Crisps crisp adj. crisp·er, crisp·est 1. Firm but easily broken or crumbled; brittle: crisp potato chips. 2. . The Mini Distinctive cookie cookie File or part of a file put on a Web user's hard disk by a Web site. Cookies are used to store registration data, to make it possible to customize information for visitors to a Web site, to target Web advertising, and to keep track of the products a user wishes to varieties, which include mini "Milano" and "Nantucket Nantucket (năntŭk`ĭt), island, c.14 mi (23 km) long, from 3 to 6 mi (4.8–9.6 km) wide, SE Mass., lying c.25 mi (40 km) S of Cape Cod, from which it is separated by Nantucket Sound. " cookies, were successfully launched. Fresh bread sales also increased primarily due to the introduction of "Pepperidge Farm" Carb Style breads and rolls, as well as good growth in the sales of bagels and English 1. English - (Obsolete) The source code for a program, which may be in any language, as opposed to the linkable or executable binary produced from it by a compiler. The idea behind the term is that to a real hacker, a program written in his favourite programming language is muffins. --Arnott's delivered strong sales results driven by improved performance in biscuits. The 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. Snackfoods business, behind strong incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. marketing investment, improved marketplace performance in a highly competitive environment. --Godiva Chocolatier's worldwide sales improved, driven by solid growth in North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. retail same store sales Same Store Sales A statistic used in retail industry analysis. It compares sales of stores that have been open for a year or more. Notes: This statistic allows investors to determine what portion of new sales has come from sales growth and what portion from the opening of and increased sales in duty free stores. For fiscal 2004, operating earnings increased 2 percent to $216 million, with currency translation accounting for 8 percentage points of the growth. Operating earnings included a $12 million restructuring charge, which negatively impacted earnings growth by 6 percentage points. Earnings growth at Pepperidge Farm, Arnott's, and Godiva was offset by a decline in earnings in the Australian Snackfoods business. International Soup and Sauces International Soup and Sauces sales were $1,182 million, an increase of 12 percent compared to a year ago. A breakdown of the change in sales follows: --Volume and mix added 2 percent --Currency added 12 percent --One less week in the fiscal year subtracted 2 percent Excluding the impact of one less week in the year, net sales rose 14 percent compared to fiscal 2003. Further details of sales results include the following: --Sales gains were achieved in France, Belgium Belgium (bĕl`jəm), Du. België, Fr. La Belgique, officially Kingdom of Belgium, constitutional kingdom (2005 est. pop. 10,364,000), 11,781 sq mi (30,513 sq km), NW Europe. and the Asia Pacific region, partially offset by sales declines in the U.K. and 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). . --In the U.K., "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. Cup-A-Soup Cup-a-Soup is an instant soup product made by Lipton/Unilever. The soup is made by pouring the soup sachet into a mug or cup, and then pouring 3/4 cup (6 fluid ounces) of hot water into the mug and stirring the mixture. " dry soup and "Batchelors Supernoodles" ramen ra·men n. 1. A Japanese dish of noodles in broth, often garnished with small pieces of meat and vegetables. 2. A thin white noodle served in this dish. noodles noo·dle 1 n. A narrow, ribbonlike strip of dried dough, usually made of flour, eggs, and water. [German Nudel. achieved good growth, which was more than offset by declines in wet soups and sauces. --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). , aseptically packaged soups, sold under the
"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). " brand in France and the "Campbell's" brand in Belgium, achieved good growth. --In Asia Pacific, soups had strong sales growth driven by increased volume in Australia Australia (ôstrāl`yə), smallest continent, between the Indian and Pacific oceans. With the island state of Tasmania to the south, the continent makes up the Commonwealth of Australia, a federal parliamentary state (2005 est. pop. , with strong performances by both Campbell's "Country Ladle" and "Chunky" brands. For fiscal 2004, operating earnings increased 5 percent to $135 million. Operating earnings included restructuring charges of $9 million, which negatively impacted earnings growth by 7 percentage points. The remaining change in earnings is primarily due to favorable currency translation. Non-GAAP Financial Information This release presents Campbell's reported financial results. In discussing these results, this release also refers to certain non-GAAP financial measures. As required by the SEC, the company has provided a reconciliation of those measures to the most directly comparable GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). measures with this release and on the company's website at www.campbellsoupcompany.com in the "Investor Center" section. Conference Call The company will host a conference call to discuss these results on September September: see month. 13, 2004 at 10:00 a.m. Eastern Standard Time. U.S. participants may access the call at 1-888-791-6044 and non-U non-U adj. Chiefly British Not characteristic of the upper class, especially in language usage. [non- + U2. .S. participants at 1-517-308-9004. 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 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. 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 www.campbellsoupcompany.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 17, 2004 at 1-800-964-3292 or 1-402-998-1011. 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 the impact of marketing investments and strategies, new product introductions, cost-saving initiatives and quality improvement on sales, earnings and margins. 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, sauce, beverage, biscuit biscuit, n the firing bakes, or stages (referred to as low, medium, and high), during the fusing of dental porcelain preceding the final, or glaze, bake. biscuit in dogs, a grayish-yellow coat color. , confectionery and prepared food products. The Company is 135 years old, with over $7 billion in annual sales and a portfolio of more than 20 market-leading brands. In North America, leading brands include "Campbell's" soups, "Swanson" broths, "Pepperidge Farm" cookies, crackers, breads and frozen products, "V8" vegetable juices, "V8 Splash" juice beverages, "Pace" Mexican sauces, and "Prego" pasta sauces. In Europe, leading brands include "Erasco" soups in Germany and "Liebig" soups in France, and several dry soup and sauce brands: "Batchelors," "Oxo," "Lesieur," "Royco," "Liebig," "Heisse Tasse," "Bla Band," "Erin Erin (ĕr`ĭn, ēr`–), ancient and poetic name of Ireland. ," and "McDonnells." Additional European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. brands include "Homepride" sauces and "Fray Bentos Fray Bentos (frī`bān`tōs), city (1996 pop. 22,577), capital of Río Negro dept., SW Uruguay, a port on the Uruguay River. It was founded in 1859 as Independencia and renamed for an 18th-century religious hermit of the region. " canned meats in the United Kingdom, and "Devos Devos, De Vos or deVos is the surname of
CAMPBELL SOUP COMPANY CONSOLIDATED
STATEMENTS OF EARNINGS
(millions, except per share amounts)
THREE MONTHS ENDED
------------------
August 1, August 3,
2004 2003
------------- -------------
Net sales $ 1,433 $ 1,455
------------- -------------
Costs and expenses
Cost of products sold 872 858
Marketing and selling expenses 242 278
Administrative expenses 142 128
Research and development expenses 28 25
Other(income)/expenses (12) 11
Restructuring charge 32 -
------------- -------------
Total costs and expenses 1,304 1,300
------------- -------------
Earnings before interest and taxes 129 155
Interest, net 43 45
------------- -------------
Earnings before taxes 86 110
Taxes on earnings 27 36
------------- -------------
Net earnings $ 59 $ 74
============= =============
Per share - basic
Net earnings $ .14 $ .18
============= =============
Dividends $ .1575 $ .1575
============= =============
Weighted average shares outstanding
- basic 409 411
============= =============
Per share - assuming dilution
Net earnings $ .14 $ .18
============= =============
Weighted average shares outstanding
- assuming dilution 412 411
============= =============
The period ended August 1, 2004 had 13 weeks. The period ended
August 3, 2003 had 14 weeks.
CAMPBELL SOUP COMPANY CONSOLIDATED
STATEMENTS OF EARNINGS
(millions, except per share amounts)
TWELVE MONTHS ENDED
-------------------
August 1, August 3,
2004 2003
------------- -------------
Net sales $ 7,109 $ 6,678
------------- -------------
Costs and expenses
Cost of products sold 4,187 3,805
Marketing and selling expenses 1,153 1,145
Administrative expenses 542 507
Research and development expenses 93 88
Other(income)/expenses (13) 28
Restructuring charge 32 -
------------- -------------
Total costs and expenses 5,994 5,573
------------- -------------
Earnings before interest and taxes 1,115 1,105
Interest, net 168 181
------------- -------------
Earnings before taxes 947 924
Taxes on earnings 300 298
------------- -------------
Earnings before cumulative
effect of accounting change 647 626
Cumulative effect of accounting change - (31)
------------- -------------
Net earnings $ 647 $ 595
============= =============
Per share - basic
Earnings before cumulative
effect of accounting change $ 1.58 $ 1.52
Cumulative effect of accounting change - (.08)
------------- -------------
Net earnings $ 1.58 $ 1.45
============= =============
Dividends $ .63 $ .63
============= =============
Weighted average shares outstanding
- basic 409 411
============= =============
Per share - assuming dilution
Earnings before cumulative
effect of accounting change $ 1.57 $ 1.52
Cumulative effect of accounting change - (.08)
------------- -------------
Net earnings $ 1.57 $ 1.45
============= =============
Weighted average shares outstanding
- assuming dilution 412 411
============= =============
In connection with the adoption of Statement of Financial Accounting
Standards No. 142 "Goodwill and Other Intangible Assets," the company
recognized a non-cash charge of $31 (net of a $17 tax benefit) as a
cumulative effect of accounting change for the write-down of goodwill
of one business unit in the first quarter of fiscal 2003.
Fiscal 2004 had 52 weeks. Fiscal 2003 had 53 weeks.
CAMPBELL SOUP COMPANY CONSOLIDATED
SUPPLEMENTAL SCHEDULE OF SALES AND EARNINGS
(millions, except per share amounts)
THREE MONTHS ENDED
------------------
August 1, August 3, Percent
Sales 2004 2003 Change
----- --------- --------- -------
Contributions:
North America Soup and Away
From Home $422 $436 -3%
North America Sauces and
Beverages 294 326 -10%
Biscuits and Confectionery 460 444 4%
International Soup and
Sauces 257 249 3%
--------- ---------
Total sales $1,433 $1,455 -2%
========= =========
Earnings
--------
Contributions:
North America Soup and Away
From Home $48 $71 -32%
North America Sauces and
Beverages 52 69 -25%
Biscuits and Confectionery 43 45 -4%
International Soup and
Sauces 23 31 -26%
--------- ---------
Total operating earnings 166 216 -23%
Unallocated corporate expenses (37) (61)
--------- ---------
Earnings before interest
and taxes 129 155 -17%
Interest, net (43) (45)
Taxes on earnings (27) (36)
--------- ---------
Net earnings $59 $74 -20%
========= =========
Net earnings per share -
assuming dilution $.14 $.18 -22%
========= =========
Earnings contributions by segment include the effect of a fourth
quarter 2004 restructuring charge of $32 pre-tax ($22 after tax or
$.05 per share) as follows: North America Soup and Away From Home $7,
North America Sauces and Beverages $3, Biscuits and Confectionery $12,
International Soup and Sauces $9 and Corporate Unallocated $1.
The period ended August 1, 2004 had 13 weeks. The period ended
August 3, 2003 had 14 weeks.
CAMPBELL SOUP COMPANY CONSOLIDATED
SUPPLEMENTAL SCHEDULE OF SALES AND EARNINGS
(millions, except per share amounts)
TWELVE MONTHS ENDED
-------------------
August 1, August 3, Percent
Sales 2004 2003 Change
----- --------- --------- -------
Contributions:
North America Soup and Away
From Home $ 2,699 $ 2,606 4%
North America Sauces and
Beverages 1,246 1,246 0%
Biscuits and Confectionery 1,982 1,774 12%
International Soup and
Sauces 1,182 1,052 12%
--------- ---------
Total sales $ 7,109 $ 6,678 6%
========= =========
Earnings
--------
Contributions:
North America Soup and Away
From Home $ 602 $ 632 -5%
North America Sauces and
Beverages 268 289 -7%
Biscuits and Confectionery 216 212 2%
International Soup and
Sauces 135 128 5%
--------- ---------
Total operating earnings 1,221 1,261 -3%
Unallocated corporate expenses (106) (156)
--------- ---------
Earnings before interest and
taxes 1,115 1,105 1%
Interest, net (168) (181)
Taxes on earnings (300) (298)
--------- ---------
Earnings before cumulative
effect of accounting
change 647 626 3%
Cumulative effect of
accounting change - (31)
--------- ---------
Net earnings $ 647 $ 595 9%
========= =========
Net earnings per share before
cumulative effect of
accounting change
- assuming dilution $ 1.57 $ 1.52 3%
========= =========
In connection with the adoption of SFAS No. 142, the company
recognized a non-cash charge of $31 (net of a $17 tax benefit), or
$.08 per share, as a cumulative effect of accounting change for the
write-down of goodwill of one business unit in the first quarter of
fiscal 2003.
Earnings contributions by segment include the effect of a fourth
quarter 2004 restructuring charge of $32 pre-tax ($22 after tax or
$.05 per share) as follows: North America Soup and Away From Home $7,
North America Sauces and Beverages $3, Biscuits and Confectionery $12,
International Soup and Sauces $9 and Corporate Unallocated $1.
Fiscal 2004 had 52 weeks. Fiscal 2003 had 53 weeks.
CAMPBELL SOUP COMPANY CONSOLIDATED
BALANCE SHEETS
(millions)
August 1, August 3,
2004 2003
---------- ----------
Current assets $ 1,481 $ 1,290
Plant assets, net 1,901 1,843
Intangible assets, net 2,995 2,821
Other assets 298 251
---------- ----------
Total assets $ 6,675 $ 6,205
========== ==========
Current liabilities $ 2,339 $ 2,783
Long-term debt 2,543 2,249
Nonpension postretirement benefits 298 304
Other liabilities 621 482
Shareowners' equity 874 387
---------- ----------
Total liabilities and shareowners' equity $ 6,675 $ 6,205
========== ==========
Total debt $ 3,353 $ 3,528
========== ==========
Cash and cash equivalents $ 32 $ 32
========== ==========
Reconciliation of GAAP and Non-GAAP Financial Measures, as reported in the Campbell Soup Company earnings release of September 13, 2004 The company uses certain "non-GAAP" financial measures as defined by the Securities and Exchange Commission in certain communications. The "non-GAAP" financial measures are measures of performance not defined by accounting principles generally accepted in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and should be considered in addition to, not in lieu of Instead of; in place of; in substitution of. It does not mean in addition to. , GAAP reported measures. The items include the following: --Earnings per share (EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. ) before the cumulative effect of accounting change, excluding restructuring related costs and one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. items --EPS annual growth rates Growth Rates The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures. Notes: Remember, historically high growth rates don't always mean a high rate of growth looking into the future. excluding restructuring related costs and one-time items --Organic sales growth The table below reconciles earnings per share before the cumulative effect of accounting change, presented in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with GAAP, to earnings per share excluding restructuring related costs and other one-time items.
Fourth Quarter Fiscal Year
-------------------------- --------------------------
August 1, August 3, % August 1, August 3, %
2004 2003 Change 2004 2003 Change
---- ---- ------ ---- ---- ------
As reported
earnings per
share before
the cumulative
effect of
accounting
change $ 0.14 $ 0.18 (22)% $ 1.57 $ 1.52 3%
Add:
Restructuring
related
costs (1) 0.05 - 0.05 -
Deduct:
Gain on
litigation
settlement (2) - - (0.02) -
Gain on sale
of
property (3) (0.02) - (0.02) -
--------- --------- --------- ---------
Earnings per
share before
the cumulative
effect of
accounting
change,
excluding
restructuring
related costs
and one-time
items $ 0.17 $ 0.18 (6)% $ 1.58 $ 1.52 4%
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(1) The 2004 costs relate to the worldwide cost savings
initiatives and Australian distribution and logistics
realignment announced on June 24.
(2) The gain relates to the settlement of a class-action lawsuit
involving ingredient suppliers.
(3) The gain relates to the sale of an idle facility in
California.
The company believes that earnings per share excluding certain restructuring related costs and certain other transactions not considered to be part of the ongoing business are a better indicator of the true performance of the business. Consequently, the company believes that investors may be able to better understand earnings if these transactions are excluded from the results. The company refers to sales growth rates adjusting for currency, acquisitions and divestitures and the extra week in a 53 week fiscal year to present the results without the impact of these items, all of which can make it more difficult for investors to understand our underlying business trend. The company refers to sales growth excluding currency, acquisitions and divestitures, and the 53rd week as organic growth. Management believes that this measure provides useful comparisons of period-to-period results. Components of the change in sales are as follows:
Fourth Quarter Fiscal Year
------------------- -------------------
August 1, August 3, August 1, August 3,
2004 2003 2004 2003
--------- --------- --------- ---------
Volume and mix 4% (2)% 2% 1%
Price 1 2 2 1
Trade and consumer promotions (2) 3 - -
--------- --------- --------- ---------
Organic growth 3% 3% 4% 2%
Acquisitions - 3 - 2
Currency 2 5 4 3
--------- --------- --------- ---------
Sub-total 5 11 8 7
Impact of 53rd week (7) 8 (2) 2
--------- --------- --------- ---------
As reported change in sales (2)% 19% 6% 9%
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