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Press release from Business Wire

Campbell to Outline New Strategic Direction

<p class='bwalignc'> <b>Updates Fiscal 2011 Guidance; Provides Annual Guidance for Fiscal 2012</b> </p>

Tuesday, July 12, 2011

Campbell to Outline New Strategic Direction08:30 EDT Tuesday, July 12, 2011 CAMDEN, N.J. (Business Wire) -- Campbell Soup Company (NYSE: CPB) will outline a new strategic direction today at a meeting with investors led by Chief Operating Officer Denise Morrison, who will become the company's President and Chief Executive Officer on Aug. 1. A web cast of the presentation will be available at investor.campbellsoupcompany.com. “During the past nine months, Campbell's new leadership team has worked closely with the Board of Directors on a comprehensive strategic review in which we have examined our business with fresh eyes, and charted a new course for our company,” Morrison said. “Our central mission and overarching priority is long-term value creation for our shareholders. We believe that the strategic transition we are announcing today will set the stage for a new chapter of profitable net sales growth and sustainable growth in total shareholder returns.” Campbell's new business strategy will focus on expansion of the company's category platforms in its three core categories of simple meals, baked snacks and healthy beverages; consumer-driven innovation in products and packaging as the primary driver of organic growth; and expansion of the company's international presence, particularly in emerging markets. Details of the new strategy, and key elements of Campbell's plans for beginning to implement its strategic transition in the fiscal year that will commence on Aug. 1, will be reviewed at the investor meeting by Morrison and other members of the company's senior leadership team, including Sean Connolly, President, Campbell North America; Mark Alexander, President, Campbell International; Pat Callaghan, President, Pepperidge Farm; and Craig Owens, Senior Vice President and Chief Financial and Administrative Officer. Guidance The company will update its previous guidance for the current fiscal year. In fiscal 2011, Campbell now expects net sales to be comparable to the prior year, a decline in adjusted earnings before interest and taxes (EBIT)of approximately (2) percent and an increase in adjusted earnings per share (EPS) of approximately 1 percent from the fiscal 2010 adjusted base of $2.47. This fiscal 2011 guidance excludes the impact of the recently announced restructuring program. A detailed reconciliation of the fiscal 2010 adjusted financial information to the 2010 reported financial information is included at the end of this news release. Morrison and Owens will also announce Campbell's guidance for fiscal 2012. The company expects net sales growth of between 0 to 2 percent, a decline in adjusted EBIT of between (8) to (6) percent and a decline in adjusted EPS of between (6) to (4) percent from the fiscal 2011 adjusted base. “Implementing our new strategic direction will require substantial investment to fund our new innovation process, accelerate innovation across our portfolio and reinvigorate consumer-focused marketing to expand the equities of important brands,” said Morrison. “Thus, fiscal 2012 will be a year of transition and investment, in which we will build the foundation for a sustainable, profitable growth trajectory in fiscal 2013 and beyond.” Over the longer term, Campbell expects to deliver annual sales growth between 3 and 4 percent, adjusted EBIT growth between 4 and 6 percent and growth in adjusted net EPS between 5 and 7 percent. “When you look at Campbell a few years from now, you will see a company with a broader and stronger flywheel for growth,” Morrison said. “We will be better balanced across our product portfolios and in our international footprint, better positioned to compete based on our impressive brand strengths, and better equipped to respond to the evolving needs of both our loyal consumer base and other important consumer groups. We are fully committed to this strategic transition, convinced that it is the right course for our shareholders and inspired by the opportunity to lead an exciting new era of growth at Campbell.” About Campbell Soup Company Campbell Soup Company is a global manufacturer and marketer of high-quality foods and simple meals, including soup and sauces, baked snacks and healthy beverages. Founded in 1869, the company has a portfolio of market-leading brands, including “Campbell's,” “Pepperidge Farm,” “Arnott's” and “V8.” Through its corporate social responsibility program, the company strives to make a positive impact in the workplace, in the marketplace and in the communities in which it operates. Campbell is a member of the Standard & Poor's 500 and the Dow Jones Sustainability Indexes. For more information, visit www.campbellsoup.com. Cautionary Note Regarding Forward-looking Statements This release contains “forward-looking statements”. Forward-looking statements can be identified by words such as “anticipates,” “intends,” “plans,” “believes,” “estimates,” “expects” and similar references to future periods. Examples of forward-looking statements include, but are not limited to, statements we make on guidance for fiscal 2011 and 2012 and long-term profitable net sales growth, on our ability to execute our new business strategies successfully, and on our expectations that we can accelerate innovation across our portfolio and expand our international footprint. Forward-looking statements are based on our current expectations and assumptions regarding our business, our industry and other future conditions. Forward-looking statements are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Our actual results may differ materially from those contemplated by the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include the impact of strong competitive response to our marketing strategies, risks associated with trade and consumer acceptance of the company's initiatives, including innovation, renovation and new products, the ability to realize projected cost savings, and the other factors described in “Risk Factors” in the company's most recent Form 10-K and subsequent SEC filings. We undertake no obligation to update these statements to reflect new information or future events. Reconciliation of GAAP and Non-GAAP Financial Measures Fiscal Year Ended Aug. 1, 2010 Campbell Soup Company uses certain non-GAAP financial measures as defined by the Securities and Exchange Commission in certain circumstances. These non-GAAP financial measures are measures of performance not defined by accounting principles generally accepted in the United States and should be considered in addition to, not in lieu of, GAAP reported measures. The company believes that financial information excluding certain transactions not considered to be part of the ongoing business improves the comparability of year-to-year results. Consequently, the company believes that investors may be able to better understand its earnings results if these transactions are excluded from the results.   Adjusted EBIT(dollars in millions)   2010 Earnings before interest and taxes, as reported $ 1,348   Restructuring charges (1) 12       Adjusted Earnings before interest and taxes   $1,360     Adjusted Diluted Net Earnings Per Share     2010 Diluted net earnings per share, as reported $ 2.42   Restructuring charges (1) 0.02   Tax expense from health care legislation (2)     0.03 Adjusted Diluted net earning per share   $2.47   (1)   In 2008, the company announced initiatives to improve operational efficiency and long-term profitability, including selling certain salty snack food brands and assets in Australia, closing certain production facilities in Australia and Canada, and streamlining the company's management structure. In 2010, the company recorded pre-tax restructuring charges of $12 million ($8 million after tax or $.02 per share) for pension benefit costs related to these initiatives.   (2) In 2010, the company recorded deferred tax expense of $10 million ($.03 per share) due to the enactment of U.S. health care legislation in March 2010. Campbell Soup CompanyAnthony Sanzio (Media)(856) 968-4390orJennifer Driscoll (Analysts/Investors)(856) 342-6081