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Campbell edges 2Q
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February 14, 2001: 10:27 a.m. ET
Soup maker sees small gain, says it will miss 3Q forecasts on increased spending
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NEW YORK (CNNfn) - Campbell Soup Co., the world's biggest soup maker, edged Wall Street estimates by a penny a share in its second quarter Wednesday but warned it will miss third-quarter expectations as a result of increased spending.
For the quarter ended Jan. 28, the Camden, N.J.-based company, which also makes Godiva chocolates, Pepperidge Farm cookies, V8 juices, Prego pasta sauce and Franco American products among others, reported earnings of 65 cents a share, flat compared with a year ago and a penny ahead of analysts' consensus forecast of 64 cents a share, according to earnings tracker First Call.
 However, net earnings declined 4 percent to $271 million from $281 million a year earlier. The company blamed increased marketing investments.
Sales increased 2 percent to $2 billion from $1.9 billion.
Campbell also said it now expects earnings per share between 28 cents and 30 cents a share in the third quarter. Analysts were expecting 32 cents a share, according to First Call.
Campbell stock (CPB: Research, Estimates) was hit hard in early trading, slumping 22 cents, or nearly 1 percent, to $30.51.
Campbell cited renewed investment in its popular "M'm! M'm! Good!" advertising campaign and more seasonable winter weather for driving soup sales.
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Campbell also said it expects 2001 earnings to be flat with a year ago as it further steps up marketing spending.
Soup and sauce sales increased 2 percent to $1.4 billion in the quarter, excluding the impact of negative currency exchanges while U.S. soup shipments increased 6 percent, led by its Chunky brand and ready-to-serve varieties. 
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