Campbell’s 4Q profit up 46%

The Campbell Soup Co. today said its profit rose 46 percent from a year ago on higher prices and a quarter that contained an extra week.

The Camden food company reported fourth-quarter net earnings of $89 million, or 24 cents per share, compared to $61 million, or 16 cents per share, a year ago.

The results were in line with Wall Street expectations.

Including a charge for restructuring, the company earned $96 million, or 26 cents per share, up 81 percent from the adjusted year-ago profit of $53 million, or 14 cents per share.

Sales rose 13 percent to $1.72 billion during the quarter from $1.52 billion a year ago.

Campbell said an extra week in the fiscal year added 8 percent to fourth-quarter sales. Charging higher prices and currency adjustments also boosted sales.

Company President and Chief Executive Officer Douglas R. Conant said he expected 2009 sales growth to exceed the company's long-term target range of 3 to 4 percent. He described the past year as challenging because of "unprecedented cost inflation."

"They are running a healthy business in general and recovering from some miscues earlier this year," Edgar Roesch, an analyst with Soleil Securities Corp. in New York said. He has a buy on the shares.

Campbell shares were up 95 cents, to $38.53 in afternoon trading on the New York Stock Exchange.

Sales of the company's condensed soups rose 6 percent, and its ready-to-serve products increased 5 percent. For the full year, soup sales were almost flat, increasing just 1 percent after adjusting for the extra week.

Beverage sales jumped more than 10 percent, partly because of an agreement to have Coca-Cola Enterprises Inc. distributed its V-8 and V-8 Fusion juices. The company also reported doubled-digit growth in its Pepperidge Farm and baked goods business thanks to stronger sales of Goldfish crackers and cookies.

Adjusting for restructuring charges this year and a loss on the sale of businesses in the United Kingdom and Ireland last year, net income per share was 26 cents in the most recent quarter and 14 cents per share a year ago.

A weak dollar drove a 17 percent increase in international sales.