Anything but Duck Soup
There's a little more soup in kitchens these days and Campbell's shareholder's are the better off for it:
The Campbell Soup Co. said Thursday its profit rose 46 percent from a year ago, as it raised prices on many of its products and got a lift from an extra week in the latest reporting period. Company President Douglas Conant told analysts on a conference call that the company was able to turn in that performance despite unusual inflation for ingredients. "In my 33 year career, I cannot recall a more challenging environment in the food industry," he said. Conant said he expected costs to continue to rise for the company — but for price increases to be enough to offset it in fiscal 2009.
In addition to higher prices and an extra week, there are several other reasons for the higher profits:
Domestic soup sales were also strong during the quarter which covered a part of the year when soup consumption is usually low. ... Campbell's said sales of its condensed soups were up by 6 percent and its ready-to-serve products were up 5 percent. But the company says its beverage sales increased by over 10 percent, partly because of an agreement to have Coca-Cola Enterprises Inc. distribute its V-8 and V-8 V-Fusion juices. International sales were up by 17 percent — largely due to a weak dollar that makes exports more attractive and strong sales of its Arnott's brand of biscuits in Australia and the Pacific Rim region.
This is not duck soup.
