By Martinne Geller
May 20 Campbell Soup Co reported
higher-than-expected quarterly earnings and raised its full-year
forecast on Monday as strong soup sales more than offset falling
The robust results were a sign that a turnaround plan led by
Chief Executive Denise Morrison was working. The plan includes
revamping Campbell's offerings with new soups and sauces and
improved existing lines after several weak soup seasons.
The company has also signed a deal to expand in Mexico and
bought Bolthouse Farms, which makes refrigerated salad dressings
and baby carrots.
Morrison said the company was still in the early stages of
Net income rose to $181 million, or 57 cents per share, in
Campbell's fiscal third quarter ended April 28, from $177
million, or 55 cents per share, a year earlier.
Excluding items, profit was 62 cents per share. On that
basis, analysts, on average, expected 56 cents per share,
according to Thomson Reuters I/B/E/S.
Net sales rose 15 percent to $2.09 billion, boosted by the
acquisition of Bolthouse. Analysts expected $2.05 billion.
Campbell also sells Prego pasta sauces, Pepperidge Farm cookies
and V8 vegetable juices.
Sales rose 11 percent in its U.S. simple meals business, and
were up 5 percent in the global baked goods business, and 2
percent in the international simple meals and drinks business.
Sales fell 5 percent in the U.S. drink business.
The company forecast full-year earnings of $2.58 to $2.62
per share, up from a prior outlook of $2.51 to $2.57. It said
sales growth should be at the upper end of its range of 10
percent to 12 percent.
Shares dipped 0.7 percent to $47.31 after rising as much as
2.5 percent in early trading.