Campbell Soup Company Reports Operating Results (10-Q)
Campbell Soup Company has a market cap of $11.37 billion; its shares were traded at around $33.87 with a P/E ratio of 14 and P/S ratio of 1.5. The dividend yield of Campbell Soup Company stocks is 3.2%. Campbell Soup Company had an annual average earning growth of 3% over the past 10 years.CPB is in the portfolios of Mason Hawkins of Southeastern Asset Management, Mark Hillman of Hillman Capital Management, John Hussman of Hussman Economtrics Advisors, Inc., Mario Gabelli of GAMCO Investors, Tom Gayner of Markel Gayner Asset Management Corp, Jeremy Grantham of GMO LLC, Arnold Van Den Berg of Century Management, Jim Simons of Renaissance Technologies LLC, Pioneer Investments, Manning & Napier Advisors, Inc, Steven Cohen of SAC Capital Advisors.
Highlight of Business Operations: Net earnings were $279 million compared to $304 million a year ago. The decline was primarily due to the decline in sales and gross margin performance, resulting from increased promotional spending. Earnings per share were $.82 compared to $.87 a year ago. Earnings per share benefited from a reduction in the weighted average diluted shares outstanding, which was primarily due to share repurchases under the companys strategic share repurchase program.
Interest expense increased to $32 million from $28 million in the prior year, primarily due to an increase in fixed-rate debt.
The company used cash from operations of $29 million in 2011, compared to cash used from operations of $36 million last year. The benefit of lower pension contributions in 2011 was mostly offset by higher working capital requirements and lower earnings.
Capital expenditures were $27 million in 2011 compared to $44 million a year ago. Capital expenditures in 2011 included the ongoing implementation of SAP in Australia and New Zealand (approximately $3 million), expansion of beverage production capacity (approximately $2 million), expansion of Pepperidge Farms production capacity (approximately $1 million), and continued enhancement of the companys corporate headquarters (approximately $1 million). Capital expenditures are expected to total approximately $300 million in 2011.
October 31, 2010 and 3 million shares at a cost of $94 million during the three-month period ended November 1, 2009. Approximately 2.7 million of the shares repurchased in the current year and approximately 1.5 million of the shares repurchased in the prior-year period were repurchased pursuant to the companys June 2008 publicly announced share repurchase program. Approximately $453 million remains available under the June 2008 repurchase program as of October 31, 2010. In addition to the June 2008 publicly announced share repurchase program, the company also purchased shares to offset the impact of dilution from shares issued under the companys stock compensation plans. The company expects to continue this practice in the future. See Unregistered Sales of Equity Securities and Use of Proceeds for more information.
At October 31, 2010, the company had $1,134 million of short-term borrowings due within one year and $24 million of standby letters of credit issued on behalf of the company. The company has a $975 million committed 364-day revolving credit facility that matures in September 2011. The company also has a $975 million committed revolving credit facility that matures in September 2013. The facilities remained unused at October 31, 2010, except for $2 million of standby letters of credit issued on behalf of the company. The agreements support the companys commercial paper programs.
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