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Campbell reports another record earnings quarter.

Campbell Soup Company reported its sixth straight quarter of record earnings. Earnings per share for the second quarter, ended January 26, were up 19 percent to 64 cents per share from 54 cents per share the prior year. This was the best earnings quarter in the Company's history. The per share data reflect a 2-for-1 stock split in December, 1991.

Net earnings for the second quarter rose 19 percent to $160.6 million from $135.3 million a year earlier. Sales for the second quarter were $1.75 billion, compared with $1.77 billion last year. This slight decline reflects the divestiture of low-profit and non-strategic businesses in the prior year. Sales from ongoing businesses were up 3 percent, excluding the effect of unfavorable exchange rates.

For the first six months of fiscal 1992, earnings per share were $1.15, up 21 percent from 95 cents a year ago. Net earnings increased 21 percent to $289.8 million from $240.4 million in the comparable period last year. Sales for the six months were $3.29 billion compared with $3.37 billion in the prior year. Sales from continuing businesses were 3 percent ahead of last year, excluding the effect of unfavorable exchange rates.

David W. Johnson, Campbell Chief Executive Officer, said "I am pleased that we have been able to deliver such strong earnings performance in the face of a very tough economic and business climate. Overall soup volume was up again for the quarter and we increased advertising by 27 percent to drive out brand equities. We have accelerated new product introductions and remain confident about delivering another successful year for Campbell."

Campbell North America

Operating earnings in the second quarter for Campbell North America were $261.1 million, or 18 percent above the $221.7 million reported a year ago, reflecting continued improvement in operating margins. Sales were $1.25 billion compared with $1.23 billion last year. Sales from continuing businesses were up 3 percent. Soup volume increased 6 percent, driven primarily by the acquisition of a leading ramen noodle manufacturer, Sanwa Foods, and strong consumer acceptance of the new "Healthy Request" soup line. "Franco-American" gravies, "Godiva" chocolates and grocery products in Canada also achieved strong volume increases.

Campbell Biscuit and Bakery

Operating earnings in the second quarter for Campbell Biscuit and Bakery were $24.9 million, or 5 percent below the $26.3 million in the prior year, reflecting the impact of increased marketing investment. Sales recovered from a weak first quarter, increasing 4 percent to $216.5 million from $208.3 million in the prior year with volume gains at Pepperidge Farm. Delacre, the European Biscuit unit, had volume gains in Germany, which is a major focus of its business development thrust, as well as in France.

Campbell International

Operating earnings in the second quarter for Campbell International rose one percent, to $14.2 million from $14.0 million last year. Operating margins continued to improve due to the positive impact of divestitures and the elimination of low margin product lines. Sales were $300 million compared with $347 million last year reflecting the divestiture activity. Sales from ongoing businesses were 4 percent ahead of last year, excluding the effect of unfavorable exchange rates. Noteworthy volume gains were achieved in Germany and Mexico.
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Title Annotation:Campbell Soup Co.,Campbell International Ltd.
Publication:Frozen Food Digest
Date:Apr 1, 1992
Words:548
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