Campbell Soup first-quarter earnings fall, US soup sales down

CAMDEN, N.J.— Campbell Soup Co.’s increased promotional spending didn’t pan out in the first quarter as the company had hoped, as U.S. soup sales declined and net income fell 8 percent.

The world’s biggest soup maker also is reiterating its 2011 guidance Tuesday.

Campbell earned $279 million, or 82 cents per share, compared with $304 million, or 87 cents per share, a year ago.

The performance missed analysts’ expectations by a penny.

Revenue for the period ended Oct. 31 dipped 1 percent to $2.17 billion from $2.2 billion, shy of Wall Street’s $2.2 billion.

The revenue results are not a surprise, as the Camden, New Jersey, company previously cautioned that heavy promotional spending in the quarter didn’t spur sales as expected. Campbell, which also sells foods including cookies and salsa, chose not to match rivals’ steep promotions in the quarter.

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