Campbell Issues Profit Warning, Restructures

Campbell Soup Co. issued its second profit warning of the year and launched a restructuring that will combine its U.S. soup operation and grocery division with its stronger Canadian business. The world’s leading soup maker said fiscal fourth-quarter earnings would be 8 to 10 cents per share below Wall Street estimates of a break-even 38 cents, because shipments of its condensed soups were not keeping pace with a 3% rise in soup consumption. Campbell said its new North America unit will be headed by F. Martin Thrasher, who previously oversaw Campbell’s businesses in Canada and Europe. Mark Leckie, who had headed the grocery division, resigned--a development that some analysts said was more of a concern than the profit warning. Campbell expects the restructuring to result in savings of $18 million to $25 million a year, and in a fourth-quarter charge of $35 million to $45 million. Its shares fell 31 cents to close at $42.13 on the NYSE.