Campbell Soup Co. (CPB), the world's largest soup maker, on Friday reported a decline in fourth-quarter profit with sales declining across all segments, and the company incurring a higher impairment charge in the latest period. However, adjusted earnings grew from the previous year, and beat analysts' consensus estimate. Further, the company issued profit outlook for fiscal 2010.
The Camden, New Jersey-based company said its fourth-quarter net earnings declined to $69 million or $0.20 per share from $89 million or $0.24 per share reported in the year-ago period. Results of the latest period included adjustments related to commodity hedging and a non-cash impairment charge related to certain European trademarks. In the previous year, results included restructuring charges and related costs.
Excluding items impacting comparability in both periods, adjusted net earnings rose to $107 million from $96 million in the prior year's quarter. On a per share basis, adjusted net earnings grew 15% to $0.30 from $0.26 in the year-ago quarter. On average, 15 analysts polled by Thomson Reuters expected the company to report earnings of $0.26 per share for the quarter. Analysts' estimates typically exclude special items.
The company noted that adjusted net earnings per share for the quarter were hurt by $0.02 due to currency translation.
Campbell manufactures and markets branded convenience food products. It operates in four segments: U.S. Soup, Sauces, and Beverages; Baking and Snacking; International Soup, Sauces, and Beverages; and North America Foodservice.
Net sales for the quarter were $1.528 billion, compared to $1.715 billion in the prior year quarter. Analysts had a consensus revenue estimate of $1.52 billion for the quarter.
With the economic crisis discouraging discretionary spending, eating at home has become popular. Campbell noted today that that excluding the impact of one less week and the acquisition of Wolfgang Puck soups, broths and stocks, U.S. soup sales increased 7%, driven partly by Campbell's condensed soups and ready-to-serve soups.
Segment-wise, at U.S. Soup, Sauces and Beverages, sales declined to $650 million from $673 million in the previous year. Baking and Snacking sales were down at $466 million from $533 million in the prior year. International Soup, Sauces and Beverages reported quarterly sales of $289 million, compared to $362 million last year. At North America Foodservice, sales declined to $123 million from $147 million in the prior year.
For the fourth quarter, the company's gross margin was 41.6%, compared to 38.7% in the prior year's quarter. Campbell's total costs and expenses for the fourth quarter declined to $1.383 billion from $1.527 billion in the prior year, mainly due to lower cost of products as well as a dip in marketing and selling expenses in the just concluded quarter.
In May, the company said its third quarter profit dropped 67% from the year-ago quarter, when results were boosted by a hefty gain from the sale of the Godiva Chocolatier business. The company reported third-quarter net income of $174 million or $0.49 per share, compared to $532 million or $1.40 per share for the year-ago quarter. Net sales for the third quarter fell 10% to $1.69 billion from $1.88 billion in the same quarter last year.
For the full year, net earnings plunged to $736 million or $2.06 per share from $1.165 billion or $3.06 per share in the prior year. Net sales declined to $7.586 billion from $7.998 billion in the previous year. For the 12-month period, analysts expected earnings to be $2.17 per share on revenues of $7.59 billion.
Among others in the industry, HJ Heinz Co. (HNZ) last month said first-quarter profit declined from the year-ago period, as unfavorable currency effects drove down sales. First-quarter net income attributable to company was $212.56 million or $0.67 per share, compared to $228.96 million or $0.72 per share last year. Sales for the quarter totaled $2.47 billion, lower than $2.58 billion generated in the prior-year quarter.
General Mills Inc. (GIS), another peer, is scheduled to announce its financial results on September 23. Sixteen Wall Street analysts polled by Thomson Reuters expect the company to report earnings of $1.02 per share for the quarter. Revenues for the quarter are estimated to be $3.49 billion.
For fiscal 2010, Campbell expects adjusted net earnings per share growth of between 5% and 7% from the fiscal 2009 adjusted base of $2.22. The company expects a rise in net sales of 3% - 4% and an increase in adjusted earnings before interest and taxes of 5% - 6%. Analysts polled by Thomson Reuters expect the company to report earnings of $2.31 per share for fiscal 2010 on revenues of $7.88 billion.
The company expects benefits from its ongoing efforts to drive product innovation and expand margins through reduced costs and increased productivity, offset in part by the negative impact of an estimated $0.06 per share in increased pension expense.
CPB is currently trading at $33.23, up $0.11 or 0.33%, on 1.17 million shares.
For comments and feedback contact: editorial@rttnews.com
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.