Camden / NJ. (csc) Campbell Soup Company, manufacturer of convenient food products, reported a decline in earnings for the second quarter of 2008, hurt by higher commodity costs. Second quarter revenues increased from last year on improved volume and mix, combined with a favorable pricing. Campbell also reaffirmed its earnings guidance for fiscal 2008.
Baking and Snacking earnings down
Operating earnings within Campbell´s Baking and Snacking division fell twelve percent in the second quarter ended January 27 to 68 million USD from 77 million USD. Last year´s results included a 23 million USD gain from the sale of a Pepperidge Farm facility. Excluding that, operating earnings rose 26 percent.
Sales rose eight percent to 491 million USD, an increase of eight percent from a year ago. A breakdown of the change in sales follows:
- Price and sales allowances added four percent
- Currency added five percent
- The divestiture of the company´s Papua New Guinea operations subtracted one percent
Further details of sales results include the following:
- Pepperidge Farm achieved sales volume growth across all businesses: cookies and crackers, bakery, and frozen.
- In the cookies and crackers business, sales gains continued to be driven primarily by the growth of «Goldfish» crackers and the growth of Distinctive and 100 calorie pack cookies.
- The bakery business also delivered solid sales gains behind whole-grain breads and sandwich rolls.
- Arnott´s sales increased primarily due to the favorable impact of currency, which was partially offset by a decline in the snack foods business.
For the first half, sales increased nine percent to 1,023 billion USD. A breakdown of the change in sales follows:
- Volume and mix added one percent
- Price and sales allowances added four percent
- Currency added five percent
- The divestiture of the company´s Papua New Guinea operations subtracted one percent
Operating earnings were 140 million USD compared to 144 million USD in the year-ago period. Operating earnings in the prior period included a 23 million USD gain from the sale of the Pepperidge Farm facility. Excluding the gain from the sale, the increase in operating earnings was driven by gains in Pepperidge Farm, the favorable impact of currency, and gains in Arnott´s.
Overall results Q2/2008
Overall, Campbell Soup Company posted earnings of 274 million USD in the second quarter, down four percent from 285 million USD in the second quarter of fiscal 2007. Net sales were 2.218 million USD, up seven percent from 2.064 million USD. For the first six months of fiscal 2008, net earnings eased six percent to 544 million USD while sales increased seven percent to 4.403 million USD. More details are available at Campbell´s Investor Centre under the headline «Campbell Reports Second Quarter Results».
