Campbell Soup Co. Anticipates Recovery

In a time when everyone is looking for signs that the economy may be approaching greener pastures, Campbell Soup Co. has stated that it expects the economy to become more normal and stable soon. However, the end of tough times may also harm Campbell in the long run, a company that has traditionally benefited from weak economies by specializing in a value product.
 
Campbell, the world’s largest soupmaker, has reported $69 million in earnings for the quarter ended August 2, a significant decline from the $89 million the company pulled in a year ago. All in all, though, Campbell managed to do better than analysts expected, posting 30 cents per share in profits compared to an expected 26 cents per share.
 
The company credits its price cuts earlier this year with helping it to generate more revenue as other food companies increased prices. While many other pricier brands have struggled throughout the recession, Campbell has stated that its high profit margin soups have performed exceptionally well.

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