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The Camden, New Jersey-based company reported net income for the fourth quarter of $89 million or $0.24 per share, compared to $61 million or $0.16 per share for the year-ago quarter.
In March, Campbell completed the $467 million sale of its Godiva business, the results of which are reported as discontinued operations for both the periods.
Income from continuing operations for the fourth quarter was $89 million or $0.24 per share, compared to $58 million or $0.15 per share in the prior year quarter.
The latest quarter results include $7 million or $0.02 per share in restructuring charges and costs related to the company's initiatives to improve operational efficiency and enhance long-term profitability, including the sale of certain salty snack foods brands and assets in Australia, the closure of production facilities in Australia and Canada, and the streamlining of its management structure. The prior year quarter results included a gain of $8 million or $0.02 per share on sale of UK/Ireland businesses and resolution of tax audits.
Excluding items, adjusted net income for the fourth quarter was $96 million or $0.26 per share, compared to $53 million or $0.14 per share a year earlier.
Adjusted income from continuing operations for the fourth quarter was $96 million or $0.26 per share, compared to $58 million or $0.15 per share in the fourth quarter of last year.
On average, 14 analysts polled by First Call / Thomson Financial expected the company to earn $0.25 per share for the fourth quarter.
The company, known for soups, Pepperidge Farm cookies and V8 V-Fusion juices, said net sales for the fourth quarter increased 13% to $1.72 billion from $1.52 billion in the same quarter last year. Ten analysts had a consensus revenue estimate of $1.72 billion for the fourth quarter.
Douglas Conant, Campbell's President and Chief Executive Officer, said, "We delivered a very strong quarter, including in our U.S. soup business, to complete a challenging year in which we faced unprecedented cost inflation.
Sales for U.S. soup, sauces and beverages rose 12% to $673 million in the fourth quarter from $601 million a year ago.
U.S. soup sales for the quarter increased 15%, with condensed soup sales up 14%, ready-to-serve soup sales up 13% and broth sales up 21%. Excluding the benefit of the extra week, U.S. soup sales increased 6%.
To boost growth in its soup business, the company earlier this year launched lower-sodium soups and reformulated its Campbell's Kids soups, part of its plans to improve and extend its product lines.
Fourth quarter sales for the company's baking and snacking business grew 13% year-over-year to $533 million. Pepperidge Farm achieved double-digit sales growth, mainly driven by gains in the cookies and crackers and bakery businesses and the positive impact of the extra week.
Sales for International soup, sauces and beverages jumped 17% year-over-year to $362 million in the fourth quarter, helped by a weaker dollar and the positive impact of the extra week.
In August, Campbell Soup named Craig Owens as senior vice president, chief financial officer and chief administrative officer, effective October 6. He would replace Robert Schiffner, who stepped down on August 1 and would retire from the company on January 31, 2009.
For the fiscal year 2008, the company reported net income of $1.17 billion or $3.06 per share, compared to $854 million or $2.16 per share for the fiscal year 2007.
Income from continuing operations for the fiscal year 2008 was $671 million or $1.76 per share, compared to $792 million or $2.00 per share in the prior fiscal year.
Adjusted net income for the fiscal year 2008 was $797 million or $2.09 per share, compared to $771 million or $1.95 per share in the fiscal year 2007.
Adjusted income from continuing operations for the fiscal 2008 was $765 million or $2.01 per share, compared to $740 million or $1.87 per share last year.
Net sales for the fiscal year 2008 increased 8% to $8.00 billion from $7.39 billion the prior year.
Analysts expected the company to earn $2.07 per share on revenue of $8.08 billion for the fiscal year 2008.
Looking forward, the company said it expects fiscal year 2009 sales, excluding the negative impact of one less week in the fiscal year and recent divestitures, to grow in excess of its long-term target of 3% to 4%.
The company also said it expects fiscal year 2009 earnings per share to grow 5% to 7% from its fiscal year 2008 adjusted earnings per share of $2.09, which is consistent with its long-term target growth rate.
Analysts currently expect the company to earn $2.23 per share on revenue of $8.45 billion for the fiscal year 2009. Campbell Soup is raising prices to offset rising costs for everything from oil to wheat. Higher prices and stiff competition from companies such as General Mills Inc. (GIS | Quote | Chart | News | PowerRating) have hurt the company's sales volume to some extent. The company has also been taking steps to refocus on its core businesses of simple meals, baked snacks and healthy beverages. It has been divesting itself of units and closing plants.
Campbell Soup completed the sale of its Godiva business for $467 million in July. In July, Campbell Soup agreed to sell its Generale Condimentaire business to Lesieur, a company indirectly held by Sofiproteol, the financial arm of the French oilseed producers. Financial terms of the deal were not disclosed.
Also in July, Campbell Soup bought Country Gourmet Foods' Wolfgang Puck soup division and signed a licensing agreement to use the Wolfgang Puck brand in U.S. stores.
Campbell shares are currently trading at $38.52, up 94 cents or 2.50%. The shares are trading in a 52-week range of $30.19 to $38.50.
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