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MOUNT LAUREL — Campbell Soup Co. officials said Wednesday that they expect to surpass their long-range earnings growth target this year despite a down economy and continued investment in its fledgling businesses in China and Russia.
The Camden-based company told analysts at a presentation at its Maxton, N.C., plant that its fiscal 2009 adjusted profit growth will be above the 5 to 7 percent target.
Given the $2.09 per share in profit recorded by the food company in fiscal 2008, Campbell's target would imply income of $2.19 to $2.24 per share in 2009.
On average, analysts polled by Thomson Reuters predict profit of $2.17 per share. Analysts' estimates normally exclude one-time items.
Campbell, whose brands include its namesake canned soup, Pepperidge Farm cookies and V8 juice, also foresees revenue climbing 3 percent to 4 percent, excluding the effect of divestitures and one less week in the period. With 2008 revenue of $8 billion, this would imply full-year sales of $8.24 billion to $8.32 billion.
Analysts expect revenue of $7.59 billion in 2009.
The world's largest soup maker said both its earnings and sales will be hurt by about 5 percentage points due to the stronger dollar.
Campbell Soup reports results Sept. 11 for the fiscal year, which ends Aug. 2.
Chief Financial Officer Craig Owens also said he expected a "quality year" in fiscal 2010, but stopped short of offering any specific financial guidance.
He said the company has not sacrificed its future for the sake of earnings now. "All of those things that are going to drive our growth long-term, we've continued to invest it," he said.
Company officials said they have continued to move forward in their efforts to sell soup in China and Russia, the two countries where the most soup is consumed — though most of it is homemade.
Campbell said the company is using Coca-Cola bottlers to distribute their soups more widely.
In Russia, the company is planning to broaden distribution from the Moscow area to 100 cities across the country.
Domestically, the company is continuing plans for several new and remade products, including a retooled line of its ready-to-serve Chunky soups. After years of hot sales, Chunky has struggled lately. Campbell says the line will be relaunched later this calendar year with healthier varieties.
Absent from Wednesday's presentation was Campbell President and CEO Doug Conant who was injured in a car accident on the New Jersey Turnpike on July 2.
The company has said he broke some ribs and needed surgery but was not in life-threatening condition, but has not offered medical details.
Owens said Wednesday that Conant remained in an undisclosed hospital. "While he's not mobile, he's on the phone and he's in charge of the company," Owens said.
Campbell stock rose 35 cents, or 1.2 percent, to $29.74.
