NEW YORK (AP) — Campbell Soup Co. said Monday that its fiscal third quarter earnings rose 11 percent as sales increases in its snack, food service and international businesses offset a decline in its core U.S. soup, sauce and beverage division.
Its U.S. soup sales were hurt as it shifted away from heavy discounting in the first half of its fiscal year.
The earnings still beat Wall Street expectations. But its shares slipped 9 cents to $35.15 in pre-market trading.
The Camden, New Jersey company said Monday that its net income rose to $187 million, or 57 cents per share, compared with $168 million, or 49 cents per share, a year earlier.
Revenue edged up to $1.81 billion from $1.80 billion a year ago.
Analysts expected earnings of 52 cents a share on revenue of $1.81 billion.
Sales in the company's baking and snacking unit, which includes Pepperidge Farm products, rose 10 percent. Foodservice segment sales were up 5 percent. Sales of soup, sauces and beverages outside the U.S. rose 7 percent.
But sales in its U.S. soup, sauce and beverage unit fell 8 percent. The company blamed lower volume due in part to fewer promotions and higher prices that deterred some customers.
The company said in a statement that it is "not satisfied with this performance and clearly have more work to do."
"We are stepping up our game across the company with plans that include innovation, brand marketing excellence, superior consumer insights and relentless cost management," the company added.
For the fiscal year ending in July, Campbell Soup expects revenue to be up 3 to 5 percent, up from a previous estimate of between 2 and 4 percent growth.