Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Campbell warns of challenging quarter as winter storm disrupts production

Stock MarketsMar 10, 2021 10:35AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. The logo and ticker for Campbell Soup Co. are displayed on a screen on the floor of the NYSE in New York

(Reuters) - Campbell Soup (NYSE:CPB) Co said on Wednesday it expects current-quarter sales to be pressured due to supply chain disruptions caused by a major winter storm and deep freeze that engulfed several U.S. states.

The soups and snacks maker, which benefited from rising demand for its ready-to-eat or quick-fix meals during the pandemic, said its plant in Texas, where it makes Prego pasta sauces, was closed for two weeks in December.

An increasing number of COVID-19 cases also led to fewer staff operating its plant during winter, a key period for the soup maker when consumers seek comfort food.

"We crossed the double-digit line on absenteeism, which was really the highest we had seen," Chief Executive Officer Mark Clouse told analysts, adding that it led to delayed shipments.

"It really did reduce a little bit of our firepower as we had expected to be able to get in front of consumption and ship a bit ahead of it."

The company forecast sales to fall 3.5% to 2.5% in fiscal 2021, following a year when demand surged as consumers stockpiled on soups and snacks before the pandemic-induced lockdowns. A gradual reopening of restaurants and the rollout of vaccines could reduce consumers' reliance on packaged food.

J.P. Morgan analyst Ken Goldman said the forecast would be a let down to some investors, considering the food-at-home category has performed better than anticipated in general.

Campbell expects adjusted annual earnings between $3.03 and $3.11 per share, compared with analysts' average estimate of $3.03 per share, according to IBES data from Refinitiv.

Second-quarter sales rose 5.4% to $2.28 billion, but fell below expectations of $2.30 billion.

Shares of Campbell were down about 2% in early trading.

Campbell warns of challenging quarter as winter storm disrupts production
 

Related Articles

Cognac sales jump 31% as drinkers go upmarket
Cognac sales jump 31% as drinkers go upmarket By Reuters - Jan 17, 2022 2

PARIS (Reuters) - Cognac sales surged by a nearly a third last year as American and Chinese drinkers guzzled old vintages, in the latest sign premium drinks makers are putting the...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email