Chicago, May 21 - Campbell Soup Co posted a third-quarter profit that beat Wall Street estimates on Thursday, helped by higher prices and cost-cutting measures.
The world's largest soup maker said earnings, excluding restructuring charges, were 48 cents a share in the fiscal quarter ended May 3, up from 43 cents a year earlier. Year earlier results exclude a gain from the sale of the Godiva chocolate business and restructuring charges.
Analysts had expected the Camden, New Jersey-based company to report earnings of 42 cents a share, according to Reuters Estimates.
Campbell's results come after Hormel Foods Corp, maker of Spam and other meat products, also posted a better-than-expected quarterly profit. The results suggest that cash-strapped consumers are eating more meals at home, a trend that would benefit both Hormel and Campbell. ID:nN21514211
The company reported net income of $174 million or 49 cents a share, compared to $532 million or $1.40 per share a year earlier.
Sales fell 10 percent to $1.69 billion. Sales for U.S. soup, sauces and beverages -- a key market for the company-- were down slightly to $808 million from $811 million a year earlier.
Excluding the impact of currency, the company expects growth in earnings before interest and taxes to fall slightly below its target of between 5 and 6 percent, reflecting the impact of one less week in 2009, higher marketing spending and increased investment spending in Russia and China.
The company said it expects its fiscal 2009 sales, earnings before interest and taxes and earnings-per-share growth rates will be hurt by about 5 percentage points due to the stronger dollar.
Shares rose 3 percent in extended trade to $27.60