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Campbell's serves 3Q profit
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May 18, 1999: 11:07 a.m. ET
Soup and broth maker's earnings meet expectations despite lower sales
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NEW YORK (CNNfn) - Campbell Soup Co. Tuesday served up a 3.2 percent rise in fiscal third-quarter earnings despite lower sales.
Profit from continuing operations for the quarter ended May 2 rose to $162 million, or 37 cents a share, compared with a loss of $90 million, or 20 cents, a year ago. Sales declined 5.1 percent to $1.49 billion from $1.57 billion.
The year-ago loss included a one-time restructuring charge of $262 million
The latest results were in line with analysts' forecasts, according to the consensus forecast of First Call Corp.
Stable U.S. sales of its wet soups and other products helped push earnings slightly higher in the latest quarter, though sagging sales in other parts of the world offset some of those gains, said Dale Morrison, president and CEO of the Camden, N.J.-based company.
An end to promotional incentives for retail customers in the previous quarter also damped profits, Morrison said. Promotional considerations include bulk discounts to retailers, who then can price items on their store shelves lower than competitors.
Worldwide soup shipments declined 6 percent in the latest quarter, and shipments in the U.S. also fell 6 percent.
Campbell stock was up 1-1/2 to 42-15/16 in midmorning New York trading. 
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Campbell's Soup
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