Campbell Soup plans to sell international, fresh units
By ASSOCIATED PRESSGeneral Food & Beverage Aluminum Campbell soup Steel tariffs
Company faces potentially costly tariffs on aluminum and steel.
Campbell Soup Co. plans to focus on its core snacks and soup business in North America and sell its international business, paying down debt.
The Camden, New Jersey, company said Thursday it’s working urgently to complete all the moves by next July.
The planned sales will leave Campbell Soup with brands including Goldfish, Pepperidge Farm and Snyder’s of Hanover.
The company announced a reorganization in May, along with the retirement of then CEO Denise Morrison, as it faces a mix of changing food trends and potentially costly tariffs on aluminum and steel.
Campbell’s has been wrestling with declining soup and juice sales in a market crowded with competitors at the same time that many families are seeking foods they consider healthier and less processed.
Earlier this year, Commerce Secretary Wilbur Ross famously held up a can of Campbell’s soup in a CNBC interview to make the case that the Trump administration’s steel and aluminum tariffs were “no big deal.” The company has said that it expects steel and aluminum costs to rise, pushing its overall costs higher.
Fourth-quarter profit plunged 70 per cent to US$94 million, or 31 cents per share, as surging costs outpaced a revenue boost. Still, the results topped Wall Street expectations.
Sales rose 33 per cent to $2.22 billion, but fell short of forecasts.
In premarket trading, shares of the company slipped 2.4 per cent to $39.05. Shares are down nearly 17 per cent in the year to date.