Campbell Soup Co. Reports 4 Percent Earnings Decline In Second Quarter

For the first half, sales decreased 2 percent to $311 million. A breakdown of the change in sales follows:

• Volume and mix subtracted 4 percent;
• Price and sales allowances added 1 percent;
• Currency added 1 percent;
• Operating earnings were $44 million compared with $43 million in the year-ago period.

In cookies and crackers, sales increased driven by solid gains in "Goldfish" snack crackers, "Baked Naturals" crackers, and "Milano" and Home-style cookies.

Strong sales growth in bakery products was driven by gains in stuffing, Swirl Bread, and the successful expansion of the "Deli Flats" line.

Operating earnings rose to $81 million compared with $73 million in the prior-year period. The increase in operating earnings was due to volume-driven growth at Pepperidge Farm.

For the first half, sales increased 5 percent to $1.070 billion. A breakdown of the change in sales follows:

• Volume and mix added 2 percent;
• Price and sales allowances added 1 percent;
• Increased promotional spending subtracted 1 percent;
• Currency added 3 percent;
• Operating earnings grew to $181 million compared with $173 million in the year-ago period. The increase in operating earnings was due to gains at Pepperidge Farm and the impact of currency, partly offset by lower earnings at Arnott's.