Campbell Reports Fourth-Quarter And Full-Year Results

For the full year, sales decreased 4 percent to $1.404 billion. Organic sales declined 2 percent. A breakdown of the change in sales follows:

• Volume and mix subtracted 3 percent
• Price and sales allowances added 2 percent
• Increased promotional spending subtracted 1 percent
• Currency subtracted 2 percent

Excluding the impact of currency, sales declines in Canada, Europe and the Asia Pacific region were partly offset by gains in Latin America.

Operating earnings fell to $153 million compared with $185 million in the year-ago period. The decrease in operating earnings was primarily due to lower earnings in the Asia Pacific region and Canada, as well as increased costs associated with the company’s market expansion in China.

U.S. Beverages

Sales for U.S. Beverages were $181 million for the fourth quarter, an increase of 3 percent compared to the year-ago period, due to gains from volume and mix.

Sales gains continued to outpace category growth and were primarily driven by double-digit increases in “V8 Splash” beverages and gains in “V8 V-Fusion” beverages, partially offset by declines in “V8” vegetable juice. Sales of “V8 V-Fusion” beverages benefited from the launch of new items, including Smoothies, Energy, Sparkling and Kids’ drinks.

Operating earnings for the quarter were $25 million compared with $30 million in the year-ago period. The decrease in earnings was primarily due to an increase in marketing expenses and a decline in gross margin percentage, partly offset by higher sales volume.

For the full year, sales increased 2 percent to $774 million. A breakdown of the change in sales follows:

• Volume and mix added 3 percent
• Increased promotional spending subtracted 1 percent

Sales of both “V8 Splash” beverages and “V8 V-Fusion” beverages increased, while sales of “V8” vegetable juice declined.

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