Profit strong at Campbell Soup despite sales slump

 
City A.M. Reporter
CAMPBELL Soup yesterday reported a better-than-expected quarterly profit and forecast full-year results at the high end of its range, after moving its focus from profit-sapping promotions to advertisements.

But the world’s top soup maker saw US sales fall for the fourth straight quarter, a sign that it may take some time for operations chief Denise Morrison to turn around the company when she takes over as chief executive this summer.

Campbell reported net income of $187m (£116m), or 57 cents per share, in its third-quarter that ended on 1 May, up from $168m, or 49 cents per share, a year earlier. Analysts on average expected 52 cents per share. Sales rose slightly to $1.81bn from $1.80bn a year ago. Foreign exchange rates boosted sales by two percentage points, but were offset by weak sales volume.