Campbell Soup Q4 Profit Rises 46 Percent

Mount Laurel, NJ (AHN) - The Campbell Soup Co. announced Thursday that fourth quarter profit rose 46 percent due to a 13 percent increase in sales and product price increases.

The food company posted fourth quarter earnings of $89 million or 24 cents a share, compared with $61 million or 16 cents a share in the same period a year ago. Revenue grew to $1.72 billion from $1.52 billion last year.

Excluding the costs of selling the Godiva chocolate and Australian salty snacks businesses, the company earned 26 cents a share. The results topped analyst estimates of 25 cents a share, according to a Thomson Financial poll.

Campbell was pleased with results as they fought continued price increases for input products. The company expects costs to continue increasing but believes product price increases and better productivity can offset such rises.

"In my 33 year career, I cannot recall a more challenging environment in the food industry," said President Douglas Conant.

Sales of condensed soups rose 6 percent while beverages sales jumped 10 percent in the fourth quarter.

Campbell is forecasting 5 to 7 percent earnings growth for fiscal year 2009.

Shares of Campbell rose 3.8 percent on Thursday, closing at $39.00.