PHILADELPHIA — Campbell Soup Co. lowered its fiscal 2010 sales forecast Wednesday as competition heats up in the soup business and said it will cut sodium and revamp the packaging for some of its soups.
The moves come as food makers are competing vigorously to sell penny-pinching consumers meals that are easy to prepare at home and convince them not to trade down to store brands.
The world's biggest soup maker now anticipates full-year sales will rise 2.5 percent to 3.5 percent, down from its prior outlook for a 4 percent to 5 percent increase.
Based on 2009 revenue of $7.6 billion, that implies sales of about $7.79 billion to $7.87 billion. Analysts polled by Thomson Reuters expect 2010 revenue of $7.87 billion.
Speaking to analysts Wednesday at Consumer Analyst Group of New York convention in Boca Raton, Fla., Campbell President and CEO Douglas Conant said the lower revenue expectations reflect what happened in the first six months of fiscal 2010. He said the company would go into detail Monday when it releases its quarterly earnings report.
Campbell, based in Camden, N.J., also maintained its outlook for 2010 adjusted earnings per share to climb 9 percent to 11 percent from fiscal 2009's $2.21 per share. This would put 2010 profit between approximately $2.41 and $2.45 per share. Analysts predict earnings of $2.46 per share for the year. These estimates typically remove one-time items.
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