Reuters: Global Markets: Campbell Soup profit beats and outlook strong; stock up

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Campbell Soup profit beats and outlook strong; stock up Sep 4th 2012, 13:19 By Martinne Geller Tue Sep 4, 2012 9:19am EDT (Reuters) - Campbell Soup Co (CPB.N) posted a bigger-than-expected quarterly profit and gave an upbeat full-year outlook on Tuesday, helped by improved soup sales, and its shares rose more than 4 percent. After several winters when soup sales suffered from heavy discounting and a lack of innovation, Campbell and its new chief executive officer are trying to improve performance with a range of new products, including Thai green curry skillet sauce. CEO Denise Morrison, who has held the top job for just over a year, said retailers were responding favorably to the new products, even though much of the quarter's soup demand came from the timing of promotions, which spurred sales of Campbell's iconic red-and-white canned varieties. The company's U.S. soup sales rose 9 percent in the just-ended fourth quarter, with condensed products up 14 percent and ready-to-serve up 1 percent. Broth sales increased 4 percent, helped by the introduction of the Swanson Flavor Boost line. Net income was $127 million, or 40 cents per share, in the fourth quarter ended on July 31, up from $100 million, or 31 cents per share, a year earlier. Excluding costs from last month's acquisition of Bolthouse Farms, earnings were 41 cents per share, topping the analysts' average estimate of 38 cents, according to Thomson Reuters I/B/E/S. Sales were flat at $1.61 billion. At an investor meeting in July, Campbell executives said the turnaround they are trying to implement was taking longer than expected because of a difficult market. Their plan includes stabilizing and expanding Campbell's North American soup and simple meals business, increasing the company's international presence and expanding the beverage and baked snack units, which include V8 juices and Pepperidge Farm cookies. Campbell forecast fiscal 2013 earnings of $2.51 to $2.57 per share, excluding special items. Analysts were expecting $2.52. The outlook includes a boost of 5 cents to 7 cents per share from Bolthouse Farms, which is also expected to contribute about $750 million in 2013 sales. Campbell forecast overall sales growth at 10 percent to 12 percent this year. The company's shares were up 4.4 percent at $36.69 in premarket trading. (Additional reporting by Brad Dorfman in Chicago; Editing by Maureen Bavdek, John Wallace and Lisa Von Ahn) Link this Share this Digg this Email Reprints

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