Campbell's profits increase
HADDONFIELD, N.J. — During a summer of record-breaking heat through much of the U.S., the Campbell Soup Co. struggled to sell its cold weather-friendly soups, but got another boost from broth, a staple for home cooks.
The company on Friday reported its fourth-quarter net income rose 63 percent to $113 million, or 33 cents per share over the same period last year. Excluding one-time items from 2009, including a charge for nontangible assets, profit rose 7 percent.
The higher profit was due largely to productivity improvements, a share buyback program and lower taxes as sales of $1.52 billion were down 1 percent.
Sales of both ready-to-serve and condensed soups were down by 7 percent for the quarter.
But broth sales rose 9 percent as the company continues to promote quick, affordable meals — including homemade soups — that can be made with its broths.
In trading Friday morning, Campbell's stock slid $1.32 to $36.
Chief Financial Officer Craig Owens said the company's research shows shoppers are sticking closely to their lists, looking for bargains and not doing much stocking up.
