Adjusted Net Earnings Per Share Were $0.65

CAMDEN, N.J.–(BUSINESS WIRE)–Feb. 23, 2009–
Campbell Soup Company (NYSE:CPB) today reported net earnings for
the quarter ended February 1, 2009 of $233 million, or $0.64 per share,
compared to $274 million, or $0.71 per share, in the prior year. The
fiscal 2009 reported net earnings included charges associated with
previously announced restructuring initiatives, the impact of
unrealized losses on the company’s commodity hedging activities and a
tax adjustment related to the divestiture of the Godiva business.
Excluding all items impacting comparability, adjusted net
earnings were $234 million in the current quarter compared to adjusted
net earnings of $266 million in the prior year’s quarter. Adjusted net
earnings per share were $0.65 in the current quarter compared to
adjusted net earnings per share of $0.69 in the prior year’s quarter.
Reflecting strengthening of the U.S. dollar, adjusted net earnings per
share for the quarter were negatively impacted by $0.04 due to currency
translation.

The items impacting comparability of net earnings are summarized below:

		Second Quarter
		2009									2008
(millions, except per share amounts)		Earnings				EPS					Earnings				EPS
Net earnings, as reported		$	233			$	0.64				$	274			$	0.71
Continuing Operations
Earnings from continuing operations, as reported		$	229			$	0.63				$	260			$	0.67
Adjustment for restructuring related costs			5				0.01					–				–
Benefit from resolution of a state tax contingency			–				–					(13	)			(0.03	)
Adjusted Earnings from continuing operations		$	234			$	0.65		*		$	247			$	0.64
Discontinued Operations
Earnings from discontinued operations, as reported		$	4			$	0.01				$	14			$	0.04
Costs associated with the sale of Godiva Chocolatier			–				–					5				0.01
Adjustment to taxes on gain on sale of Godiva Chocolatier			(4	)			(0.01	)				–				–
Adjusted Earnings from discontinued operations		$	–			$	–				$	19			$	0.05
Adjusted Net earnings		$	234			$	0.65				$	266			$	0.69
* Does not add due to rounding.

A detailed reconciliation of the adjusted fiscal 2009 and 2008 financial
information to the reported information is attached to this release.

For the second quarter, sales declined 4 percent to $2.122 billion. The
decline in sales reflects the following factors:

• Volume and mix subtracted 3 percent
• Price and sales allowances added 9 percent
• Increased promotional spending subtracted 3 percent
• Currency subtracted 5 percent
• Divestitures subtracted 2 percent

Douglas R. Conant, Campbell’s President and Chief Executive Officer,
said, “For the first half, we delivered strong sales growth in our key
value-oriented businesses, including U.S. soup and sauces. U.S. soup
sales increased 8 percent with growth in all formats: condensed,
ready-to-serve and broth. As planned, we invested in our U.S. soup
portfolio and supported three major new product introductions. Beyond
soup, other parts of our portfolio, such as beverages and premium
breads, continued to grow but at slower rates during these difficult
economic times. Overall, the categories in which we compete are growing,
and our businesses are performing well within those categories.

“In the second quarter, we maintained momentum in our U.S. soup
business, building on very strong sales in the first quarter. Our
product innovations in ready-to-serve soups and effective marketing of
our condensed portfolio have resonated with consumers as they eat more
meals at home. We remain encouraged by the successful launches of
‘Campbell’s Select Harvest’ and ‘Campbell’s’ ‘V8’ ready-to-serve soups
and ‘Swanson’ stock. ‘Prego’ and ‘Pace’ sauces also benefited from
consumers eating more meals at home.”

Conant continued, “Overall, we are pleased with our performance in the
quarter, especially considering that currency negatively impacted
results and major retailers significantly reduced inventory levels.
While these inventory reductions have impacted our U.S. soup, sauces and
beverages businesses, encouragingly consumer takeaway has outpaced sales
growth. Campbell’s portfolio continues to provide great value, quality
and convenience, and consumer response to our products remained strong.

“As expected, our adjusted gross margin trend performance improved on a
quarter-to-quarter basis, and we expect that to continue for the balance
of the fiscal year.”

Conant concluded, “Campbell remains well positioned during this economic
downturn due to the focused and value-oriented nature of our portfolio,
the relative vitality of the categories in which we compete and our
position within those categories. Despite broad economic challenges, we
are optimistic about the second half of the year.”

Fiscal 2009 Guidance

On a currency-neutral basis, the company now expects to deliver sales
growth, excluding the negative impact of one less week in the fiscal
year and divestitures, within its long-term target range of between 3
and 4 percent; adjusted earnings before interest and taxes (EBIT)
growth slightly below its long-term growth target of between 5
and 6 percent, reflecting the impact of one less week, higher marketing
spending and increased investment spending in Russia and China. Campbell
expects growth in adjusted net earnings per share to be at the high end
of the 5 to 7 percent range, reflecting improved margin outlook and
favorable interest costs, from the fiscal 2008 adjusted base of $2.09.

At quarter-end rates of exchange, the company’s fiscal 2009 sales, EBIT
and EPS growth rates would be negatively impacted by approximately 5
percentage points as a result of currency translation.

First Half Results

The current and prior period’s net earnings included items that impacted
comparability. These items are summarized below:

		Six Months
		2009								2008
(millions, except per share amounts)		Earnings				EPS				Earnings				EPS
Net earnings, as reported		$	493			$	1.35			$	544			$	1.41
Continuing Operations
Earnings from continuing operations, as reported		$	489			$	1.34			$	528			$	1.36
Adjustment for restructuring related costs			10				0.03				–				–
Adjustment for unrealized losses on commodity hedges			16				0.04				–				–
Benefit from resolution of a state tax contingency			–				–				(13	)			(0.03	)
Adjusted Earnings from continuing operations		$	515			$	1.41			$	515			$	1.33
Discontinued Operations
Earnings from discontinued operations, as reported		$	4			$	0.01			$	16			$	0.04
Costs associated with the sale of Godiva Chocolatier			–				–				5				0.01
Adjustment to taxes on gain on sale of Godiva Chocolatier			(4	)			(0.01	)			–				–
Adjusted Earnings from discontinued operations		$	–			$	–			$	21			$	0.05
Adjusted Net earnings		$	515			$	1.41			$	536			$	1.39		*
* Does not add due to rounding.

Net earnings for the first half were $493 million, or $1.35 per share,
compared to $544 million, or $1.41 per share, in the year-ago period.
Excluding items impacting comparability, adjusted net earnings were $515
million compared to $536 million in the year-ago period. Adjusted net
earnings per share were $1.41 in the current period compared to $1.39 in
the prior period, an increase of 1 percent. Adjusted net earnings per
share growth benefited from a decline in average diluted shares
outstanding due to repurchases utilizing the net proceeds from the
Godiva divestiture and Campbell’s strategic share repurchase programs.
In the first half of 2009, adjusted net earnings per share were
negatively impacted by $0.05 due to currency translation.

For the first half of fiscal 2009, sales were $4.372 billion, a decrease
of 1 percent. The change in sales for the period reflects the
following factors:

• Volume and mix subtracted 1 percent
• Price and sales allowances added 8 percent
• Increased promotional spending subtracted 3 percent
• Currency subtracted 3 percent
• Divestitures subtracted 2 percent

Second Quarter Financial Details

• Gross margin was 39.4 percent compared to 40.1 percent a year ago. The
  current year included $8 million of costs related to initiatives to
  improve operational efficiency and long-term profitability. After
  adjusting for this item, gross margin percentage for the quarter was
  39.8 percent. The decline in gross margin percentage was primarily due
  to cost inflation and increased promotional spending, partly offset by
  higher selling prices and productivity improvements.
• Marketing and selling expenses decreased to $315 million due to the
  impact of currency, partly offset by higher advertising mainly in the
  U.S. soup and sauces businesses.
• Excluding items impacting comparability, earnings before interest and
  taxes were $363 million as compared to $400 million in the prior-year
  quarter, a reduction of 9 percent. Five percentage points of this
  decline were due to the unfavorable impact of currency translation.
  The balance of the decline was due to higher advertising and lower
  gross margin.
• At the end of the quarter, net debt, or total debt minus cash and cash
  equivalents, was $2.631 billion compared to $2.661 billion a year ago,
  a decrease of $30 million.
• Net interest expense declined to $25 million, compared to $42 million
  in the prior year due to the significant decline in the company’s
  short-term borrowing costs.

First Half Financial Details

• Marketing and selling expenses increased $7 million to $622 million
  due to higher advertising expenses mainly due to product launches in
  the U.S. soup business, partially offset by the impact of currency and
  lower selling expenses. In the first half, Campbell introduced
  “Campbell’s Select Harvest” and “Campbell’s” “V8” ready-to-serve soups
  and “Swanson” stock.
• Excluding items impacting comparability, earnings before interest and
  taxes were $795 million as compared to $828 million in the prior year,
  a decrease of 4 percent. Three percentage points of the decline were
  due to the unfavorable impact of currency translation.
• Average diluted shares outstanding declined to 364 million from 387
  million primarily due to repurchases utilizing net proceeds from the
  divestiture of the Godiva business and Campbell’s strategic share
  repurchase programs.
• During the first half, Campbell repurchased 9 million shares for $295
  million under its June 2008 strategic share repurchase program
  and the company’s ongoing practice of buying back shares sufficient to
  offset shares issued under incentive compensation plans.

Summary of Fiscal 2009 Second Quarter and First Half Results by
Segment

U.S. Soup, Sauces and Beverages

Sales for U.S. Soup, Sauces and Beverages were $1.128 billion, an
increase of 3 percent compared to a year ago. The change in sales
reflects the following factors:

• Volume and mix subtracted 3 percent
• Price and sales allowances added 10 percent
• Increased promotional spending subtracted 4 percent

U.S. soup sales, especially condensed varieties, were negatively
impacted by significant reductions in retailer inventory levels. Total
soup sales for the quarter increased 4 percent, driven by the following:

• Sales of “Campbell’s” condensed soups increased 1 percent with gains
  in cooking varieties as consumers ate more meals at home.
• Sales of ready-to-serve soups increased 7 percent due to the
  successful launches of “Campbell’s Select Harvest” and “Campbell’s”
  “V8” soups and gains in “Campbell’s Chunky” canned soups. These gains
  were partially offset by declines in sales of Campbell’s convenience
  platform, which includes soup in microwavable bowls and cups.
• Broth sales increased 3 percent due to the successful
  introduction of “Swanson” cooking stock, partially offset by increased
  promotional spending in response to competitive activity.

Further details of the sales results of this segment’s other businesses
include:

• Beverage sales increased slightly following double-digit growth a year
  ago. The increase was driven by the continued strong performance of
  “V8 V-Fusion” juice and growth in “V8 Splash” juice drinks, partially
  offset by declines in “V8” vegetable juice and “Campbell’s” tomato
  juice.
• “Prego” pasta sauce sales increased and sales of “Pace” Mexican sauces
  were unchanged. Sales of both products were significantly impacted by
  reductions in retailer inventory levels. Growth in consumer takeaway
  of these products remained strong driven by “Prego” Heart Smart
  varieties and “Pace” specialty salsas.

Operating earnings were $270 million compared to $286 million in the
prior-year period. The decrease in operating earnings was due to costs,
including advertising associated with the introduction of new products
in the U.S. soup business, partially offset by increased sales.

For the first half, U.S. Soup, Sauces and Beverages sales increased 6
percent to $2.326 billion. A breakdown of the change in sales follows:

• Price and sales allowances added 9 percent
• Increased promotional spending subtracted 3 percent

For the first half, soup sales increased 8 percent:

• Sales of condensed soup increased 8 percent with gains in both eating
  and cooking varieties.
• Sales of ready-to-serve soup increased 7 percent due to the successful
  launches of “Campbell’s Select Harvest” and “Campbell’s” “V8” soups.
• Broth sales increased 13 percent due to the continued growth of the
  base business and the successful introduction of “Swanson” cooking
  stock.

Operating earnings were $584 million compared to $595 million in the
year-ago period. The decrease in operating earnings was due to an
inflation-driven decline in gross margin percentage and higher levels of
marketing for new product launches, partially offset by higher sales.

Baking and Snacking

Sales for Baking and Snacking were $440 million, a decrease of 10
percent from a year ago. A breakdown of the change in sales follows:

• Volume and mix subtracted 1 percent
• Price and sales allowances added 9 percent
• Increased promotional spending subtracted 2 percent
• Currency subtracted 8 percent
• Divestitures subtracted 8 percent

Further details of sales results include the following:

• Sales of Pepperidge Farm products increased driven by gains in the
  cookies and crackers and bakery businesses.
  • In the cookies and crackers business, sales increases were driven
    by double-digit gains in “Goldfish” snack crackers and in “Milano”
    cookies, as well as the introduction of Baked Naturals, an adult
    savory snack cracker.
  • The bakery business also delivered solid sales growth behind
    whole-grain and Swirl breads.
• On a reported basis, Arnott’s sales declined due to the divestiture of
  certain salty snack foods brands in May 2008 and the unfavorable
  impact of currency. Excluding these factors, sales increased due to
  growth in all segments: savory, chocolate and sweet.
• Sales of biscuits in Indonesia grew strongly.

Operating earnings were $53 million compared with $68 million in the
prior-year period. The decrease in operating earnings was due to
a decline in Pepperidge Farm and the unfavorable impact of currency,
partially offset by significant growth in Arnott’s. The current quarter
included $2 million in accelerated depreciation and other exit costs
related to the previously announced restructuring initiative.

For the first half, sales decreased 7 percent to $949 million. A
breakdown in the change in sales follows:

• Volume and mix subtracted 1 percent
• Price and sales allowances added 9 percent
• Increased promotional spending subtracted 2 percent
• Currency subtracted 5 percent
• Divestitures subtracted 8 percent

Operating earnings were $136 million compared to $140 million in the
year-ago period. The decrease in operating earnings was due to the
unfavorable impact of currency. Excluding currency, significant growth
in Arnott’s was partly offset by a decline in Pepperidge Farm. The
current period included $2 million in accelerated depreciation and other
exit costs related to the previously announced restructuring initiative.

International Soup, Sauces and Beverages

Sales for International Soup, Sauces and Beverages were $391 million, a
decrease of 15 percent compared to a year ago. The change in sales
reflects the following factors:

• Volume and mix subtracted 5 percent
• Price and sales allowances added 5 percent
• Decreased promotional spending added 1 percent
• Currency subtracted 13 percent
• Divestitures subtracted 3 percent

Excluding the unfavorable impact of currency, further details of sales
results include the following:

• In Europe, sales declined primarily due to the divestiture of the
  company’s French sauce and mayonnaise business in September 2008 and
  lower sales in Germany.
• In Asia Pacific, sales increased primarily due to gains in the
  Australian soup business and Malaysia.
• In Canada, sales increased due to gains in the soup business.

Operating earnings decreased to $50 million from $61 million a year ago
due to the impact of currency. Excluding the impact of currency,
operating earnings increased in Europe, reflecting the benefit of cost
savings initiatives, and in Canada, primarily offset by the cost to establish
businesses in Russia and China.

For the first half, sales decreased 9 percent to $771 million. A
breakdown of the change in sales follows:

• Volume and mix subtracted 2 percent
• Price and sales allowances added 4 percent
• Increased promotional spending subtracted 1 percent
• Currency subtracted 8 percent
• Divestitures subtracted 2 percent

Excluding the impact of currency and divestitures, sales increased due
to gains in Asia Pacific and Canada, partially offset by a decline in
Europe.

Operating earnings were $88 million compared to $112 million in the
year-ago period. The decrease in operating earnings was due to the cost
to establish businesses in Russia and China and the
unfavorable impact of currency, partially offset by gains in Europe and
Asia Pacific.

North America Foodservice

Sales were $163 million, a decrease of 7 percent compared to a year ago.
A breakdown of the change in sales follows:

• Volume and mix subtracted 9 percent
• Price and sales allowances added 6 percent
• Increased promotional spending subtracted 1 percent
• Currency subtracted 3 percent

Sales were significantly impacted by weakness in the food service sector.

Operating earnings were $10 million compared to $20 million in the prior
period. The current quarter included $6 million in accelerated
depreciation and other exit costs related to the previously
announced restructuring initiative. The remaining decline in operating
earnings was primarily due to lower volumes.

For the first half, sales were $326 million compared to $342 million in
the year-ago period. A breakdown of the change in sales follows:

• Volume and mix subtracted 8 percent
• Price and sales allowances added 6 percent
• Increased promotional spending subtracted 1 percent
• Currency subtracted 2 percent

Operating earnings were $21 million compared to $44 million in the prior
period. The current period included $13 million in accelerated
depreciation and other exit costs related to the previously
announced restructuring initiative. The remaining decline in operating
earnings was primarily due to lower volumes.

Unallocated Corporate Expenses

Unallocated corporate expenses decreased from $35 million a year ago to
$28 million in the current quarter. The decrease was primarily due to
lower expenses associated with the company’s North American SAP
implementation. For the first half, unallocated corporate expenses
increased from $63 million to $75 million. The increase was due to $26
million of unrealized losses on commodity hedging included in the
current year, partially offset by lower expenses related to the North
American SAP implementation. During the second quarter, there was no
change in the aggregate unrealized losses on commodity hedging
activities. In the prior year, unrealized gains and losses on commodity
hedging activities were not material.

Non-GAAP Financial Information

A reconciliation of the adjusted fiscal 2009 and 2008 financial
information to the reported financial information is attached to this
release and can also be found on the company’s website at www.thecampbellscompany.com
in the “Investor Center” section.

Conference Call

The company will host a conference call to discuss these results on
February 23, 2009 at 10:00 a.m. Eastern Standard Time. U.S. participants
may access the call at 1-866-847-7860 and non-U.S. participants at
1-703-639-1427. Participants should call at least five minutes prior to
the starting time. The passcode is “Campbell Soup” and the conference
leader is Len Griehs. The call will also be broadcast live over the
Internet at www.thecampbellscompany.com
and can be accessed by clicking on the “Shareholder Event / Webcast”
banner. A recording of the call will be available approximately two
hours after it is completed through midnight March 2, 2009 at
1-888-266-2081 or 1-703-925-2533. The access code is 1331351.

Reporting Segments

Campbell Soup Company earnings results are reported for the following
segments:

U.S. Soup, Sauces and Beverages includes the following retail
businesses: “Campbell’s” brand condensed and ready-to-serve soups,
“Swanson” broth and canned poultry businesses, “Prego” pasta sauce,
“Pace” Mexican sauce, “Campbell’s Chunky” chili, “Campbell’s” canned
pasta, gravies and beans, “V8” vegetable juices, “V8 V-Fusion” juices,
“V8 Splash” juice beverages, “Campbell’s” tomato juice, and “Wolfgang
Puck” soups, stocks and broths.

Baking and Snacking includes the following businesses:
“Pepperidge Farm” cookies, crackers, breads and frozen products in U.S.
retail, “Arnott’s” biscuits in Australia and Asia Pacific, and
“Arnott’s” salty snacks in Australia.

International Soup, Sauces and Beverages includes the soup, sauce
and beverage businesses outside of the United States, including Europe,
Mexico, Latin America, the Asia Pacific region, as well as the
emerging markets of Russia and China, and the retail business in
Canada.

North America Foodservice includes the Away From Home
business in the U.S. and Canada.

About Campbell Soup Company

Campbell Soup Company is a global manufacturer and marketer of
high-quality foods and simple meals, including soup, baked snacks, and
healthy beverages. Founded in 1869, the company has a portfolio of
market-leading brands, including “Campbell’s,” “Pepperidge Farm,”
“Arnott’s,” and “V8.” For more information on the company, visit
Campbell’s website at www.campbellsoup.com.

Forward-Looking Statements

This release contains “forward-looking statements” that reflect the
company’s current expectations about its future plans and performance,
including statements concerning the impact of marketing investments and
strategies, pricing, share repurchase, new product introductions and
innovation, cost-saving initiatives, quality improvements, inflation,
commodity hedging, currency translation and portfolio strategies,
including divestitures, on sales, earnings, and margins. These
forward-looking statements rely on a number of assumptions and estimates
that could be inaccurate and which are subject to risks and
uncertainties. The factors that could cause the company’s actual results
to vary materially from those anticipated or expressed in any
forward-looking statement include (1) the impact of strong competitive
responses to the company’s efforts to leverage its brand power in the
market; (2) the risks associated with trade and consumer acceptance of
the company’s initiatives; (3) the company’s ability to realize
projected cost savings and benefits; (4) the company’s ability to manage
changes to its business processes; (5) the increased significance of
certain of the company’s key trade customers; (6) the impact of
fluctuations in the supply or costs of energy and raw and packaging
materials; (7) the risks associated with portfolio changes; (8) the
uncertainties of litigation; (9) the impact of changes in currency
exchange rates, tax rates, interest rates, debt and equity markets,
inflation rates, economic conditions and other external factors; (10)
the impact of unforeseen business disruptions in one or more of the
company’s markets due to political instability, civil disobedience,
armed hostilities, natural disasters or other calamities; and (11) other
factors described in the company’s most recent Form 10-K and subsequent
Securities and Exchange Commission filings. The company disclaims any
obligation or intent to update the forward-looking statements in order
to reflect events or circumstances after the date of this release.

CAMPBELL SOUP COMPANY CONSOLIDATED
STATEMENTS OF EARNINGS (unaudited)
(millions, except per share amounts)
		THREE MONTHS ENDED
		February 1,			January 27,
		2009			2008
Net sales		$	2,122		$	2,218
Costs and expenses
Cost of products sold			1,285			1,329
Marketing and selling expenses			315			319
Administrative expenses			138			141
Research and development expenses			27			25
Other expenses / (income)			2			4
Total costs and expenses			1,767			1,818
Earnings before interest and taxes			355			400
Interest, net			25			42
Earnings before taxes			330			358
Taxes on earnings			101			98
Earnings from continuing operations			229			260
Earnings from discontinued operations			4			14
Net earnings		$	233		$	274
Per share – basic
Earnings from continuing operations		$	.65		$	.69
Earnings from discontinued operations			.01			.04
Net earnings		$	.66		$	.73
Dividends		$	.25		$	.22
Weighted average shares outstanding – basic			355			377
Per share – assuming dilution
Earnings from continuing operations		$	.63		$	.67
Earnings from discontinued operations			.01			.04
Net earnings		$	.64		$	.71
Weighted average shares outstanding – assuming dilution			362			386

In fiscal 2009, the company recorded pre-tax restructuring related costs in cost of products sold of $8 ($5 after tax or $.01 per share) related to the initiatives announced in April 2008 to improve operational efficiency.

In fiscal 2009, the company recognized a $4 (or $.01 per share) tax benefit in discontinued operations related to the sale of the Godiva Chocolatier business.

In fiscal 2008, the company recognized a $13 (or $.03 per share) tax benefit in continuing operations related to the favorable resolution of a state tax contingency.

CAMPBELL SOUP COMPANY CONSOLIDATED
STATEMENTS OF EARNINGS (unaudited)
(millions, except per share amounts)
		SIX MONTHS ENDED
		February 1,				January 27,
		2009				2008
Net sales		$	4,372			$	4,403
Costs and expenses
Cost of products sold			2,664				2,622
Marketing and selling expenses			622				615
Administrative expenses			278				282
Research and development expenses			56				52
Other expenses / (income)			(2	)			4
Total costs and expenses			3,618				3,575
Earnings before interest and taxes			754				828
Interest, net			57				84
Earnings before taxes			697				744
Taxes on earnings			208				216
Earnings from continuing operations			489				528
Earnings from discontinued operations			4				16
Net earnings		$	493			$	544
Per share – basic
Earnings from continuing operations		$	1.37			$	1.40
Earnings from discontinued operations			.01				.04
Net earnings		$	1.38			$	1.44
Dividends		$	.50			$	.44
Weighted average shares outstanding – basic			356				378
Per share – assuming dilution
Earnings from continuing operations		$	1.34			$	1.36
Earnings from discontinued operations			.01				.04
Net earnings		$	1.35			$	1.41
Weighted average shares outstanding – assuming dilution			364				387

In fiscal 2009, the company recorded pre-tax restructuring related costs in cost of products sold of $15 ($10 after tax or $.03 per share) related to the initiatives announced in April 2008 to improve operational efficiency.

In fiscal 2009, the company recognized $26 ($16 after tax or $.04 per share) in cost of products sold related to unrealized losses on commodity hedges.

In fiscal 2009, the company recognized a $4 (or $.01 per share) tax benefit in discontinued operations related to the sale of the Godiva Chocolatier business.

In fiscal 2008, the company recognized a $13 (or $.03 per share) tax benefit in continuing operations related to the favorable resolution of a state tax contingency.

The sum of the individual per share amounts does not equal due to rounding.

CAMPBELL SOUP COMPANY CONSOLIDATED
SUPPLEMENTAL SCHEDULE OF SALES AND EARNINGS (unaudited)
(millions, except per share amounts)
		THREE MONTHS ENDED
		February 1,				January 27,				Percent
Sales		2009				2008				Change
Contributions:
U.S. Soup, Sauces and Beverages		$	1,128			$	1,093			3	%
Baking and Snacking			440				491			(10	%)
International Soup, Sauces and Beverages			391				458			(15	%)
North America Foodservice			163				176			(7	%)
Total sales		$	2,122			$	2,218			(4	%)
Earnings
Contributions:
U.S. Soup, Sauces and Beverages		$	270			$	286			(6	%)
Baking and Snacking			53				68			(22	%)
International Soup, Sauces and Beverages			50				61			(18	%)
North America Foodservice			10				20			(50	%)
Total operating earnings			383				435			(12	%)
Unallocated corporate expenses			(28	)			(35	)
Earnings before interest and taxes			355				400			(11	%)
Interest, net			(25	)			(42	)
Taxes on earnings			(101	)			(98	)
Earnings from continuing operations			229				260			(12	%)
Earnings from discontinued operations			4				14
Net earnings		$	233			$	274			(15	%)
Per share – assuming dilution
Earnings from continuing operations		$	.63			$	.67			(6	%)
Earnings from discontinued operations			.01				.04
Net earnings		$	.64			$	.71			(10	%)

In fiscal 2009, the company recorded pre-tax restructuring related costs in cost of products sold of $8 ($5 after tax or $.01 per share) related to the initiatives announced in April 2008 to improve operational efficiency. The restructuring related costs were recognized in the following segments: North America Foodservice – $6, and Baking and Snacking – $2.

In fiscal 2009, the company recognized a $4 (or $.01 per share) tax benefit in discontinued operations related to the sale of the Godiva Chocolatier business.

In fiscal 2008, the company recognized a $13 (or $.03 per share) tax benefit in continuing operations related to the favorable resolution of a state tax contingency.

CAMPBELL SOUP COMPANY CONSOLIDATED
SUPPLEMENTAL SCHEDULE OF SALES AND EARNINGS (unaudited)
(millions, except per share amounts)
		SIX MONTHS ENDED
		February 1,				January 27,				Percent
Sales		2009				2008				Change
Contributions:
U.S. Soup, Sauces and Beverages		$	2,326			$	2,190			6	%
Baking and Snacking			949				1,023			(7	%)
International Soup, Sauces and Beverages			771				848			(9	%)
North America Foodservice			326				342			(5	%)
Total sales		$	4,372			$	4,403			(1	%)
Earnings
Contributions:
U.S. Soup, Sauces and Beverages		$	584			$	595			(2	%)
Baking and Snacking			136				140			(3	%)
International Soup, Sauces and Beverages			88				112			(21	%)
North America Foodservice			21				44			(52	%)
Total operating earnings			829				891			(7	%)
Unallocated corporate expenses			(75	)			(63	)
Earnings before interest and taxes			754				828			(9	%)
Interest, net			(57	)			(84	)
Taxes on earnings			(208	)			(216	)
Earnings from continuing operations			489				528			(7	%)
Earnings from discontinued operations			4				16
Net earnings		$	493			$	544			(9	%)
Per share – assuming dilution
Earnings from continuing operations		$	1.34			$	1.36			(1	%)
Earnings from discontinued operations			.01				.04
Net earnings		$	1.35			$	1.41			(4	%)

In fiscal 2009, the company recorded pre-tax restructuring related costs in cost of products sold of $15 ($10 after tax or $.03 per share) related to the initiatives announced in April 2008 to improve operational efficiency. The restructuring related costs were recognized in the following segments: North America Foodservice – $13, and Baking and Snacking – $2.

In fiscal 2009, the company recognized $26 ($16 after tax or $.04 per share) in cost of products sold related to unrealized losses on commodity hedges. The losses are included in Unallocated corporate expenses.

In fiscal 2009, the company recognized a $4 (or $.01 per share) tax benefit in discontinued operations related to the sale of the Godiva Chocolatier business.

In fiscal 2008, the company recognized a $13 (or $.03 per share) tax benefit in continuing operations related to the favorable resolution of a state tax contingency.

The sum of the individual per share amounts does not equal due to rounding.

CAMPBELL SOUP COMPANY CONSOLIDATED
BALANCE SHEETS (unaudited)
(millions)
		February 1,			January 27,
		2009			2008
Current assets		$	1,638		$	1,755
Current assets held for sale			–			123
Plant assets, net			1,760			1,930
Intangible assets, net			2,189			2,566
Other assets			324			384
Non-current assets held for sale			–			118
Total assets		$	5,911		$	6,876
Current liabilities		$	1,865		$	2,289
Current liabilities held for sale			–			71
Long-term debt			1,957			1,780
Other liabilities			1,052			1,129
Non-current liabilities held for sale			–			12
Shareowners’ equity			1,037			1,595
Total liabilities and shareowners’ equity		$	5,911		$	6,876
Total debt		$	2,711		$	2,756
Cash and cash equivalents		$	80		$	95
Net debt		$	2,631		$	2,661

Reconciliation of GAAP and Non-GAAP Financial Measures
Second
Quarter Ended February 1, 2009

Campbell Soup Company uses certain non-GAAP financial measures as
defined by the Securities and Exchange Commission in certain
communications. These non-GAAP financial measures are measures of
performance not defined by accounting principles generally accepted in
the United States and should be considered in addition to, not in lieu
of, GAAP reported measures.

Net Debt

The company believes that net debt is a non-GAAP measure that provides
additional meaningful comparisons between the company’s financial
position at February 1, 2009 and January 27, 2008, and also a useful
perspective on the financial condition of the business. Interest income
earned on cash and cash equivalents partially offsets interest expense
on debt. Cash and cash equivalents are available to repay outstanding
debt upon maturity.

The table below summarizes information on total debt and cash and cash
equivalents:

(millions)		February 1, 2009				January 27, 2008
Current notes payable		$	754			$	976
Long-term debt			1,957				1,780
Total debt		$	2,711			$	2,756
Less: Cash and cash equivalents			(80	)			(95	)
Net debt		$	2,631			$	2,661

Items Impacting Gross Margin and Net
Earnings

The company believes that financial information excluding certain
transactions not considered to be part of the ongoing business improves
the comparability of year-to-year results. Consequently, the company
believes that investors may be able to better understand its gross
margin and earnings results if these transactions are excluded.

The following items impacted gross margin and/or net earnings:

(1)		In the first quarter of fiscal 2009, the company recognized in cost of products sold $26 million ($16 million after tax or $0.04 per share) of unrealized losses on the fair value of open commodity futures contracts. Beginning in fiscal 2009, unrealized gains and losses on commodity hedging activities are excluded from segment operating earnings and are recorded in unallocated corporate expenses as these open positions represent hedges of future purchases. Upon closing of the contracts, the realized gain or loss is transferred to segment operating earnings, which allows the segments to reflect the economic effects of the hedge without exposure to quarterly volatility of unrealized gains and losses. The volatility associated with the unrealized gains or losses will be treated as an item impacting comparability. In prior periods, unrealized gains and losses on commodity hedging were not material.
(2)		In fiscal 2008, the company announced initiatives to improve operational efficiency and long-term profitability, including selling certain salty snack food brands and assets in Australia, closing certain production facilities in Australia and Canada, and streamlining the company’s management structure. In the second quarter of fiscal 2009, the company recorded expenses of $8 million ($5 million after tax or $0.01 per share) in cost of products sold related to these initiatives. The aggregate year-to-date impact was $15 million ($10 million after tax or $0.03 per share). For the year ended August 3, 2008, the company recorded pre-tax restructuring charges of $175 million and $7 million of expenses in cost of products sold (aggregate impact of $107 million after tax or $0.28 per share) related to these initiatives.
(3)		In the second quarter of fiscal 2009, the company recorded a $4 million tax benefit ($0.01 per share) in discontinued operations related to the sale of the Godiva Chocolatier business.
(4)		In the second quarter of fiscal 2008, the company recorded a non-cash tax benefit of $13 million ($0.03 per share) in earnings from continuing operations from the favorable resolution of a state tax contingency in the United States.
(5)		In the second quarter of fiscal 2008, costs of $9 million ($5 million after tax or $0.01 per share) associated with the sale of the Godiva Chocolatier business were recognized in discontinued operations. In fiscal 2008, the company recognized a pre-tax gain of $698 million ($462 million after tax or $1.21 per share) in earnings from discontinued operations from the sale of the Godiva Chocolatier business.

The tables below reconcile financial information, presented in
accordance with GAAP, to financial information excluding certain
transactions:

(millions, except per share amounts)		Second Quarter
		Feb. 1, 2009				Jan. 27, 2008				% Change
Gross margin, as reported		$	837			$	889
Add: Restructuring related costs (2)			8				–
Adjusted Gross margin		$	845			$	889			(5	)%
Adjusted Gross margin percentage			39.8	%			40.1	%
Earnings before interest and taxes, as reported		$	355			$	400
Add: Restructuring related costs (2)			8				–
Adjusted Earnings before interest and taxes		$	363			$	400			(9	)%
Interest, net, as reported		$	25			$	42
Adjusted Earnings before taxes		$	338			$	358
Taxes on earnings, as reported		$	101			$	98
Add: Tax benefit from restructuring related costs (2)			3				–
Add: Tax benefit from resolution of a state tax contingency (4)			–				13
Adjusted Taxes on earnings		$	104			$	111
Adjusted effective income tax rate			30.8	%			31.0	%
Earnings from continuing operations, as reported		$	229			$	260
Add: Net adjustment from restructuring related costs (2)			5				–
Deduct: Benefit from resolution of a state tax contingency (4)			–				(13	)
Adjusted Earnings from continuing operations		$	234			$	247			(5	)%
Earnings from discontinued operations, as reported		$	4			$	14
Deduct: Tax benefit from the sale of the Godiva Chocolatier business (3)			(4	)			–
Add: Costs associated with the sale of the Godiva Chocolatier business (5)			–				5
Adjusted Earnings from discontinued operations		$	–			$	19
Adjusted Net earnings		$	234			$	266			(12	)%
Diluted earnings per share – continuing operations, as reported		$	0.63			$	0.67
Add: Net adjustment from restructuring related costs (2)			0.01				–
Deduct: Benefit from resolution of a state tax contingency (4)			–				(0.03	)
Adjusted Diluted earnings per share – continuing operations *		$	0.65			$	0.64			2	%
Diluted earnings per share – discontinued operations, as reported		$	0.01			$	0.04
Deduct: Tax benefit from the sale of the Godiva Chocolatier business (3)			(0.01	)			–
Add: Costs associated with the sale of the Godiva Chocolatier business (5)			–				0.01
Adjusted Diluted earnings per share – discontinued operations		$	–			$	0.05
Adjusted Diluted net earnings per share		$	0.65			$	0.69			(6	)%

*The sum of the individual per share amounts does not equal due to
rounding.

(millions, except per share amounts)		Year-to-Date
		Feb. 1, 2009				Jan. 27, 2008				% Change
Gross margin, as reported		$	1,708			$	1,781
Add: Unrealized losses on commodity hedges (1)			26				–
Add: Restructuring related costs (2)			15				–
Adjusted Gross margin		$	1,749			$	1,781			(2	)%
Adjusted Gross margin percentage			40.0	%			40.4	%
Earnings before interest and taxes, as reported		$	754			$	828
Add: Unrealized losses on commodity hedges (1)			26				–
Add: Restructuring related costs (2)			15				–
Adjusted Earnings before interest and taxes		$	795			$	828			(4	)%
Interest, net, as reported		$	57			$	84
Adjusted Earnings before taxes		$	738			$	744
Taxes on earnings, as reported		$	208			$	216
Add: Tax benefit from unrealized losses on commodity hedges (1)			10				–
Add: Tax benefit from restructuring related costs (2)			5				–
Add: Tax benefit from resolution of a state tax contingency (4)			–				13
Adjusted Taxes on earnings		$	223			$	229
Adjusted effective income tax rate			30.2	%			30.8	%
Earnings from continuing operations, as reported		$	489			$	528
Add: Net adjustment from unrealized losses on commodity hedges (1)			16				–
Add: Net adjustment from restructuring related costs (2)			10				–
Deduct: Benefit from resolution of a state tax contingency (4)			–				(13	)
Adjusted Earnings from continuing operations		$	515			$	515			–	%
Earnings from discontinued operations, as reported		$	4			$	16
Deduct: Tax benefit from the sale of the Godiva Chocolatier business (3)			(4	)			–
Add: Costs associated with the sale of the Godiva Chocolatier business (5)			–				5
Adjusted Earnings from discontinued operations		$	–			$	21
Adjusted Net earnings		$	515			$	536			(4	)%
Diluted earnings per share – continuing operations, as reported		$	1.34			$	1.36
Add: Net adjustment from unrealized losses on commodity hedges (1)			0.04				–
Add: Net adjustment from restructuring related costs (2)			0.03				–
Deduct: Benefit from resolution of a state tax contingency (4)			–				(0.03	)
Adjusted Diluted earnings per share – continuing operations		$	1.41			$	1.33			6	%
Diluted earnings per share – discontinued operations, as reported		$	0.01			$	0.04
Deduct: Tax benefit from the sale of the Godiva Chocolatier business (3)			(0.01	)			–
Add: Costs associated with the sale of the Godiva Chocolatier business (5)			–				0.01
Adjusted Diluted earnings per share – discontinued operations		$	–			$	0.05
Adjusted Diluted net earnings per share *		$	1.41			$	1.39			1	%

*The sum of the individual per share amounts does not equal due to
rounding.

(millions, except per share amounts)
		Year Ended
		Aug. 3, 2008
Earnings before interest and taxes, as reported		$	1,098
Add: Restructuring charges and related costs (2)			182
Adjusted Earnings before interest and taxes		$	1,280
Interest, net, as reported		$	159
Adjusted Earnings before taxes		$	1,121
Taxes on earnings, as reported		$	268
Add: Tax benefit from restructuring charges and related costs (2)			75
Add: Tax benefit from resolution of a state tax contingency (4)			13
Adjusted Taxes on earnings		$	356
Adjusted effective income tax rate			31.8	%
Earnings from continuing operations, as reported		$	671
Add: Net adjustment from restructuring charges and related costs (2)			107
Deduct: Benefit from resolution of a state tax contingency (4)			(13	)
Adjusted Earnings from continuing operations		$	765
Earnings from discontinued operations, as reported		$	494
Deduct: Gain on sale of the Godiva Chocolatier business (5)			(462	)
Adjusted Earnings from discontinued operations		$	32
Adjusted Net earnings		$	797
Diluted earnings per share – continuing operations, as reported		$	1.76
Add: Net adjustment from restructuring charges and related costs (2)			0.28
Deduct: Benefit from resolution of state tax contingency (4)			(0.03	)
Adjusted Diluted earnings per share – continuing operations		$	2.01
Diluted earnings per share – discontinued operations, as reported		$	1.30
Deduct: Gain on sale of the Godiva Chocolatier business (5)			(1.21	)
Adjusted Diluted earnings per share – discontinued operations *		$	0.08
Adjusted Diluted net earnings per share*		$	2.09

* The sum of the individual per share amounts does not equal due to
rounding.

Source: Campbell Soup Company

Campbell Soup Company
Leonard F. Griehs (Analysts), 856-342-6428
Anthony
Sanzio (Media), 856-968-4390