Campbell Soup Cuts Earnings Guidance Amid ‘Challenges’ as CEO Morrison Leaves

11:30 AM, May 18, 2018 — Campbell Soup Company (CPB) said Chief Executive Officer Denise Morrison “has chosen to retire” in a decision that has immediate effect, as the food maker cut its earnings guidance for 2018 and said it’s reviewing its strategic plans and portfolio.

Morrison, a 15-year veteran of the company, will be replaced on an interim basis by board member Keith McLoughlin. She said in a statement that she’s “proud of Campbell’s accomplishments and how we have transformed our portfolio amid changing consumer tastes for food and health and well-being.”

The CEO change comes as the maker of Goldfish crackers, Prego sauce and Chunky soup said fiscal third quarter adjusted earnings rose to $0.70 per share from $0.59 a year earlier, beating the Capital IQ consensus forecast of $0.60. Net sales rose 15% to $2.13 billion, in line with analysts’ view.

“In the third quarter, we made some progress against our key priorities,” Chief Financial Officer Anthony DiSilvestro said. “However, we are not satisfied with our financial results. Our performance has been impacted by both execution-related and external challenges.”

The company lowered its full-year 2018 adjusted EPS guidance to a range of $2.85 to $2.90 from $3.10 to $3.17 that was projected in its second-quarter results. But the recent acquisition of Snyder’s-Lance lifted the outlook for net sales, which are now seen rising between 10% and 11% from $7.89 billion in fiscal 2017, compared to the prior outlook for down 1% to up 1%. Analysts are expecting 2018 earnings of $3.12 and revenue of $8.76 billion.

“We will be reviewing all aspects of our strategic plans and portfolio composition,” DiSilvestro said. “We anticipate that our review, which will take several months to complete, will lead to changes designed to improve our operating performance and create long-term shareholder value.”

Campbell also said Chief Operating Officer Luca Mignini will focus on the integration of Snyder’s-Lance and Pacific Foods along with “stabilizing the company’s US soup business.”

Companies: Campbell Soup Company
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