News Release
Campbell Reports First-Quarter Fiscal 2021 Results and Increases Quarterly Dividend
Net Sales increased 7%; OrganicNet Sales increased 8% reflecting continued elevated demand for Campbell's brands.- Earnings Before Interest and Taxes (EBIT) increased 45% to
$461 million . Adjusted EBIT increased 18% to$463 million . - Earnings Per Share (EPS) from Continuing Operations of
$1.02 increased 82%. Adjusted EPS of$1.02 increased 31%. - Increases quarterly dividend by 6% to
$0.37 per share. - Provides guidance for the second quarter of fiscal 2021.
Continuing Operations |
Three Months Ended |
|||||||
($ in millions, except per share) |
|
|
|
|
% Change |
|||
|
|
|
|
|
|
|||
As Reported (GAAP) |
$ |
2,340 |
|
$ |
2,183 |
|
7 |
% |
Organic |
|
|
|
|
8 |
% |
||
Earnings Before Interest and Taxes (EBIT) |
|
|
|
|
|
|||
As Reported (GAAP) |
$ |
461 |
|
$ |
317 |
|
45 |
% |
Adjusted |
$ |
463 |
|
$ |
392 |
|
18 |
% |
Diluted Earnings Per Share |
|
|
|
|
|
|||
As Reported (GAAP) |
$ |
1.02 |
|
$ |
0.56 |
|
82 |
% |
Adjusted |
$ |
1.02 |
|
$ |
0.78 |
|
31 |
% |
Note: A detailed reconciliation of the reported (GAAP) financial information to the adjusted financial information is included at the end of this news release. |
CEO Comments
Clouse continued: “The Board approved a 6% increase in our quarterly dividend, reflecting the company’s strong earnings performance, cash flows and increasing confidence in our long-term growth prospects, as well as our continued commitment to shareholder returns.”
Items Impacting Comparability for Continuing Operations
The table below presents a summary of items impacting comparability in each period. A detailed reconciliation of the reported (GAAP) financial information to the adjusted information is included at the end of this news release.
|
Diluted Earnings Per Share |
||||||
|
Three Months Ended |
||||||
|
|
|
|
||||
As Reported (GAAP) |
$ |
1.02 |
|
|
$ |
0.56 |
|
Restructuring charges, implementation costs and other related costs associated with cost savings initiatives |
$ |
0.02 |
|
|
$ |
0.03 |
|
Net pension settlement gains |
$ |
(0.01 |
) |
|
$ |
— |
|
Charges associated with divestiture |
$ |
— |
|
|
$ |
0.20 |
|
Adjusted* |
$ |
1.02 |
|
|
$ |
0.78 |
|
*Numbers may not add due to rounding. |
First-Quarter Results from Continuing Operations
Net sales increased 7% to
Gross margin increased from 33.8% to 34.7%. Excluding items impacting comparability in the current year, adjusted gross margin increased 100 basis points to 34.8% driven primarily by moderated promotional spending and favorable mix, offset partly by slightly higher net supply chain costs as productivity improvements and improved operating leverage were more than offset by cost inflation, other operational costs and COVID-19 related costs.
Marketing and selling expenses increased 1% to
Other income was
As reported EBIT increased 45% to
Net interest expense was
As reported and adjusted EPS from continuing operations were
Cash flows from operations of
Cost Savings Program from Continuing Operations
In the first quarter of fiscal 2021, Campbell achieved
Quarterly Dividend Increase
The company’s Board of Directors has approved an increase in its quarterly dividend from
Campbell Provides Second-Quarter Fiscal 2021 Guidance
The impact of the continuing pandemic on the company's fiscal 2021 results is uncertain and makes it difficult to provide a full-year outlook at this time. Based on our expectation of a continued elevated demand landscape and increased investment in our brands, the company is providing second-quarter fiscal 2021 guidance as set forth in the table below:
Continuing Operations |
|
Q2 2020 |
|
|
Q2 2021 |
($ in millions, except per share) |
|
|
|
|
|
|
|
|
|
|
+5% to +7% |
|
|
|
|
|
|
Adjusted EBIT |
|
|
|
|
+5% to +7% |
|
|
|
|
|
|
Adjusted EPS |
|
|
|
|
+12% to +15% |
|
|
|
|
|
|
* Adjusted - refer to the detailed reconciliation of the reported (GAAP) financial information to the adjusted financial information at the end of this news release. |
Note: A non-GAAP reconciliation is not provided for 2021 guidance as certain amounts are not estimable, such as pension and postretirement mark-to-market adjustments, and these items are not considered to reflect the company's ongoing business results. |
Segment Operating Review
An analysis of net sales and operating earnings by reportable segment follows:
|
Three Months Ended |
|||||
|
($ in millions) |
|||||
|
Meals & Beverages* |
|
Snacks* |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volume and Mix |
11% |
|
1% |
|
6% |
|
Price and Sales Allowances |
—% |
|
—% |
|
—% |
|
Promotional Spending |
2% |
|
2% |
|
2% |
|
Organic |
12% |
|
4% |
|
8% |
|
Divestiture |
—% |
|
(3)% |
|
(1)% |
|
% Change vs. Prior Year |
12% |
|
1% |
|
7% |
|
|
|
|
|
|
|
|
Segment Operating Earnings |
|
|
|
|
|
|
% Change vs. Prior Year |
18% |
|
11% |
|
|
*Numbers may not add due to rounding. |
Note: A detailed reconciliation of the reported (GAAP) net sales to organic net sales is included at the end of this news release. |
Meals & Beverages
Net sales, both reported and organic, in the quarter increased 12% reflecting increases across
Segment operating earnings increased 18%. The increase was primarily due to sales volume gains and improved gross margin performance, offset partly by increased marketing investment. Gross margin performance was impacted by the lower levels of promotional spending and favorable mix, as productivity improvements and improved operating leverage were offset by other operational costs, cost inflation and COVID-19 related costs.
Snacks
Net sales in the quarter increased 1%. Excluding the impact from the sale of the European chips business, organic sales increased 4% fueled by our power brands. Contributors to growth were lower levels of promotional spending as well as healthy velocity on the majority of the base business including volume gains in fresh bakery products, Late July snacks, Pop Secret popcorn,
Segment operating earnings increased 11% driven by lower selling expenses, lower marketing overhead and sales volume gains partly offset by higher administrative expenses. Gross margin performance was consistent with prior year as lower levels of promotional spending were offset by higher net supply chain costs as productivity improvements, cost savings initiatives and improved operating leverage were more than offset by cost inflation and COVID-19 related costs.
Corporate
Corporate expenses were
Conference Call and Webcast
Campbell will host a conference call to discuss these results today at
Reportable Segments
Meals & Beverages includes the retail and foodservice businesses in the
Snacks includes
About
Campbell (NYSE:CPB) is driven and inspired by our purpose, "Real food that matters for life's moments." For generations, people have trusted Campbell to provide authentic, flavorful and affordable snacks, soups and simple meals, and beverages. Founded in 1869, Campbell has a heritage of giving back and acting as a good steward of the planet's natural resources. The company is a member of the Standard and Poor's 500 and the FTSE4Good Index. For more information, visit www.campbellsoupcompany.com or follow company news on Twitter via @CampbellSoupCo.
Forward-Looking Statements
This release contains “forward-looking statements” that reflect the company’s current expectations about the impact of its future plans and performance on the company’s business or financial results. These forward-looking statements, including any statements made regarding sales, EBIT and EPS guidance, rely on a number of assumptions and estimates that could be inaccurate and which are subject to risks and uncertainties. The factors that could cause the company’s actual results to vary materially from those anticipated or expressed in any forward-looking statement include: (1) impacts of, and associated responses to, the COVID-19 pandemic; (2) the company’s ability to execute on and realize the expected benefits from its strategy, including growing sales in snacks and maintaining its market share position in soup; (3) the impact of strong competitive responses to the company’s efforts to leverage its brand power with product innovation, promotional programs and new advertising; (4) the risks associated with trade and consumer acceptance of product improvements, shelving initiatives, new products and pricing and promotional strategies; (5) the ability to realize projected cost savings and benefits from cost savings initiatives and the integration of recent acquisitions; (6) disruptions to the company’s supply chain and/or operations, as well as fluctuations in the supply of and inflation in energy and raw and packaging materials cost; (7) the company’s ability to manage changes to its organizational structure and/or business processes, including selling, distribution, manufacturing and information management systems or processes; (8) changes in consumer demand for the company’s products and favorable perception of the company’s brands; (9) changing inventory management practices by certain of the company’s key customers; (10) a changing customer landscape, with value and e-commerce retailers expanding their market presence, while certain of the company’s key customers maintain significance to the company’s business; (11) product quality and safety issues, including recalls and product liabilities; (12) the possible disruption to the independent contractor distribution models used by certain of the company’s businesses, including as a result of litigation or regulatory actions affecting their independent contractor classification; (13) the uncertainties of litigation and regulatory actions against the company; (14) the costs, disruption and diversion of management’s attention associated with activist investors; (15) a material failure in or breach of the company’s information technology systems; (16) impairment to goodwill or other intangible assets; (17) the company’s ability to protect its intellectual property rights; (18) increased liabilities and costs related to the company’s defined benefit pension plans; (19) the company’s ability to attract and retain key talent; (20) negative changes and volatility in financial and credit markets, deteriorating economic conditions and other external factors, including changes in laws and regulations; (21) unforeseen business disruptions in one or more of the company’s markets due to political instability, civil disobedience, terrorism, armed hostilities, extreme weather conditions, natural disasters, other pandemics or other calamities; and (22) other factors described in the company’s most recent Form 10-K and subsequent
|
||||||||
CONSOLIDATED STATEMENTS OF EARNINGS (unaudited) |
||||||||
(millions, except per share amounts) |
||||||||
|
|
Three Months Ended |
||||||
|
|
|
|
|
||||
Net sales |
|
$ |
2,340 |
|
|
$ |
2,183 |
|
Costs and expenses |
|
|
|
|
||||
Cost of products sold |
|
1,527 |
|
|
1,445 |
|
||
Marketing and selling expenses |
|
208 |
|
|
206 |
|
||
Administrative expenses |
|
141 |
|
|
134 |
|
||
Research and development expenses |
|
20 |
|
|
22 |
|
||
Other expenses / (income) |
|
(18 |
) |
|
56 |
|
||
Restructuring charges |
|
1 |
|
|
3 |
|
||
Total costs and expenses |
|
1,879 |
|
|
1,866 |
|
||
Earnings before interest and taxes |
|
461 |
|
|
317 |
|
||
Interest, net |
|
55 |
|
|
80 |
|
||
Earnings before taxes |
|
406 |
|
|
237 |
|
||
Taxes on earnings |
|
97 |
|
|
68 |
|
||
Earnings from continuing operations |
|
309 |
|
|
169 |
|
||
Loss from discontinued operations |
|
— |
|
|
(3 |
) |
||
Net earnings |
|
309 |
|
|
166 |
|
||
Net loss attributable to noncontrolling interests |
|
— |
|
|
— |
|
||
Net earnings attributable to |
|
$ |
309 |
|
|
$ |
166 |
|
Per share - basic |
|
|
|
|
||||
Earnings from continuing operations attributable to |
|
$ |
1.02 |
|
|
$ |
.56 |
|
Loss from discontinued operations |
|
— |
|
|
(.01 |
) |
||
Net earnings attributable to |
|
$ |
1.02 |
|
|
$ |
.55 |
|
Weighted average shares outstanding - basic |
|
302 |
|
|
301 |
|
||
Per share - assuming dilution |
|
|
|
|
||||
Earnings from continuing operations attributable to |
|
$ |
1.02 |
|
|
$ |
.56 |
|
Loss from discontinued operations |
|
— |
|
|
(.01 |
) |
||
Net earnings attributable to |
|
$ |
1.02 |
|
|
$ |
.55 |
|
Weighted average shares outstanding - assuming dilution |
|
304 |
|
|
303 |
|
|
|||||||||||
CONSOLIDATED SUPPLEMENTAL SCHEDULE OF SALES AND EARNINGS (unaudited) |
|||||||||||
(millions, except per share amounts) |
|||||||||||
|
Three Months Ended |
|
|
||||||||
|
|
|
|
|
Percent |
||||||
Sales |
|
|
|
|
|
||||||
Contributions: |
|
|
|
|
|
||||||
Meals & Beverages |
$ |
1,342 |
|
|
$ |
1,194 |
|
|
12 |
% |
|
Snacks |
998 |
|
|
989 |
|
|
1 |
% |
|||
Total sales |
$ |
2,340 |
|
|
$ |
2,183 |
|
|
7 |
% |
|
Earnings |
|
|
|
|
|
||||||
Contributions: |
|
|
|
|
|
||||||
Meals & Beverages |
$ |
333 |
|
|
$ |
282 |
|
|
18 |
% |
|
Snacks |
139 |
|
|
125 |
|
|
11 |
% |
|||
Total operating earnings |
472 |
|
|
407 |
|
|
16 |
% |
|||
Corporate |
(10 |
) |
|
(87 |
) |
|
|
||||
Restructuring charges |
(1 |
) |
|
(3 |
) |
|
|
||||
Earnings before interest and taxes |
461 |
|
|
317 |
|
|
45 |
% |
|||
Interest, net |
55 |
|
|
80 |
|
|
|
||||
Taxes on earnings |
97 |
|
|
68 |
|
|
|
||||
Earnings from continuing operations |
309 |
|
|
169 |
|
|
|
||||
Loss from discontinued operations |
— |
|
|
(3 |
) |
|
|
||||
Net earnings |
309 |
|
|
166 |
|
|
86 |
% |
|||
Net loss attributable to noncontrolling interests |
— |
|
|
— |
|
|
|
||||
Net earnings attributable to |
$ |
309 |
|
|
$ |
166 |
|
|
86 |
% |
|
Per share - assuming dilution |
|
|
|
|
|
||||||
Earnings from continuing operations attributable to |
$ |
1.02 |
|
|
$ |
.56 |
|
|
82 |
% |
|
Loss from discontinued operations |
— |
|
|
(.01 |
) |
|
|
||||
Net earnings attributable to |
$ |
1.02 |
|
|
$ |
.55 |
|
|
85 |
% |
|
||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) |
||||||||
(millions) |
||||||||
|
|
|
|
|||||
Current assets |
$ |
2,463 |
|
|
$ |
1,738 |
|
|
Current assets of discontinued operations |
— |
|
|
315 |
|
|||
Plant assets, net |
2,352 |
|
|
2,352 |
|
|||
Intangible assets, net |
7,327 |
|
|
7,371 |
|
|||
Other assets |
275 |
|
|
390 |
|
|||
Noncurrent assets of discontinued operations |
— |
|
|
944 |
|
|||
Total assets |
$ |
12,417 |
|
|
$ |
13,110 |
|
|
Current liabilities |
$ |
2,906 |
|
|
$ |
3,252 |
|
|
Current liabilities of discontinued operations |
— |
|
|
183 |
|
|||
Long-term debt |
4,996 |
|
|
6,706 |
|
|||
Other liabilities |
1,742 |
|
|
1,679 |
|
|||
Noncurrent liabilities of discontinued operations |
— |
|
|
41 |
|
|||
Total equity |
2,773 |
|
|
1,249 |
|
|||
Total liabilities and equity |
$ |
12,417 |
|
|
$ |
13,110 |
|
|
Total debt* |
$ |
6,080 |
|
|
$ |
8,344 |
|
|
Total cash and cash equivalents* |
$ |
722 |
|
|
$ |
176 |
|
*Includes discontinued operations as of |
|
||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) |
||||||||
(millions) |
||||||||
|
Three Months Ended |
|||||||
|
|
|
|
|||||
Cash flows from operating activities: |
|
|
|
|||||
Net earnings |
$ |
309 |
|
|
$ |
166 |
|
|
Adjustments to reconcile net earnings to operating cash flow |
|
|
|
|||||
Restructuring charges |
1 |
|
|
3 |
|
|||
Stock-based compensation |
16 |
|
|
14 |
|
|||
Pension and postretirement benefit income |
(20 |
) |
|
(18 |
) |
|||
Depreciation and amortization |
76 |
|
|
81 |
|
|||
Deferred income taxes |
25 |
|
|
(9 |
) |
|||
Loss on sales of businesses |
— |
|
|
104 |
|
|||
Other |
21 |
|
|
28 |
|
|||
Changes in working capital, net of divestitures |
|
|
|
|||||
Accounts receivable |
(189 |
) |
|
(174 |
) |
|||
Inventories |
(38 |
) |
|
(37 |
) |
|||
Prepaid assets |
8 |
|
|
6 |
|
|||
Accounts payable and accrued liabilities |
(28 |
) |
|
32 |
|
|||
Other |
(1 |
) |
|
(14 |
) |
|||
Net cash provided by operating activities |
180 |
|
|
182 |
|
|||
Cash flows from investing activities: |
|
|
|
|||||
Purchases of plant assets |
(74 |
) |
|
(98 |
) |
|||
Purchases of route businesses |
(1 |
) |
|
(3 |
) |
|||
Sales of route businesses |
3 |
|
|
2 |
|
|||
Sales of businesses, net of cash divested |
— |
|
|
368 |
|
|||
Net cash provided by (used in) investing activities |
(72 |
) |
|
269 |
|
|||
Cash flows from financing activities: |
|
|
|
|||||
Short-term borrowings, including commercial paper |
— |
|
|
2,508 |
|
|||
Short-term repayments, including commercial paper |
(123 |
) |
|
(2,447 |
) |
|||
Long-term repayments |
— |
|
|
(399 |
) |
|||
Dividends paid |
(108 |
) |
|
(107 |
) |
|||
|
— |
|
|
1 |
|
|||
Payments related to tax withholding for stock-based compensation |
(13 |
) |
|
(9 |
) |
|||
Other |
(1 |
) |
|
— |
|
|||
Net cash used in financing activities |
(245 |
) |
|
(453 |
) |
|||
Effect of exchange rate changes on cash |
— |
|
|
(1 |
) |
|||
Net change in cash and cash equivalents |
(137 |
) |
|
(3 |
) |
|||
Cash and cash equivalents — beginning of period |
859 |
|
|
31 |
|
|||
Cash balance of discontinued operations — beginning of period |
— |
|
|
148 |
|
|||
Cash balance of discontinued operations — end of period |
— |
|
|
(115 |
) |
|||
Cash and cash equivalents — end of period |
$ |
722 |
|
|
$ |
61 |
|
Reconciliation of GAAP to Non-GAAP Financial Measures
First Quarter Ended
Organic
Organic net sales are net sales excluding the impact of currency, acquisitions, and divestitures. Management believes that excluding these items, which are not part of the ongoing business, improves the comparability of year-to-year results. A reconciliation of net sales as reported to organic net sales follows.
Three Months Ended |
||||||||||||||||||||||||||||||
|
|
|
|
|
% Change |
|||||||||||||||||||||||||
(millions) |
|
Impact of |
Organic |
|
|
Impact of |
Organic |
|
|
Organic |
||||||||||||||||||||
Meals & Beverages |
$ |
1,342 |
|
$ |
— |
|
$ |
1,342 |
|
|
$ |
1,194 |
|
$ |
— |
|
$ |
1,194 |
|
|
12 |
% |
12 |
% |
||||||
Snacks |
998 |
|
— |
|
998 |
|
|
989 |
|
(25 |
) |
964 |
|
|
1 |
% |
4 |
% |
||||||||||||
Total |
$ |
2,340 |
|
$ |
— |
|
$ |
2,340 |
|
|
$ |
2,183 |
|
$ |
(25 |
) |
$ |
2,158 |
|
|
7 |
% |
8 |
% |
Items Impacting Earnings
Management believes that financial information excluding certain items that are not considered to reflect the ongoing operating results, such as those listed below, improves the comparability of year-to-year results. Consequently, management believes that investors may be able to better understand its results excluding these items.
The following items impacted earnings:
Continuing Operations
(1) |
The company has implemented several cost savings initiatives in recent years. |
|
|
|
|
|
In the first quarter of fiscal 2021, the company recorded Restructuring charges of |
|
|
|
|
(2) |
In the first quarter of fiscal 2021, the company recognized pre-tax pension settlement gains in Other expenses / (income) of |
|
|
|
|
(3) |
In the first quarter of fiscal 2020, the company recorded a loss in Other expenses / (income) of |
|
|
|
|
(4) |
In the second quarter of fiscal 2020, the company recorded a loss in Interest expense of |
Discontinued Operations
(3) |
In the first quarter of fiscal 2020, the company incurred charges of |
The following tables reconcile financial information, presented in accordance with GAAP, to financial information excluding certain items:
|
Three Months Ended |
|
|
||||||||||||||||||||||||
|
|
|
|
|
|
||||||||||||||||||||||
(millions, except per share amounts) |
As |
|
Adjustments(a) |
|
Adjusted |
|
As |
|
Adjustments(a) |
|
Adjusted |
|
Adjusted |
||||||||||||||
Gross margin |
$ |
813 |
|
|
$ |
1 |
|
|
$ |
814 |
|
|
$ |
738 |
|
|
$ |
— |
|
|
$ |
738 |
|
|
10 |
% |
|
Gross margin percentage |
34.7 |
% |
|
|
|
34.8 |
% |
|
33.8 |
% |
|
|
|
33.8 |
% |
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Administrative expenses |
$ |
141 |
|
|
$ |
(4 |
) |
|
$ |
137 |
|
|
$ |
134 |
|
|
$ |
(8 |
) |
|
$ |
126 |
|
|
|
||
Other expenses / (income) |
$ |
(18 |
) |
|
$ |
4 |
|
|
$ |
(14 |
) |
|
$ |
56 |
|
|
$ |
(64 |
) |
|
$ |
(8 |
) |
|
|
||
Restructuring charges |
$ |
1 |
|
|
$ |
(1 |
) |
|
$ |
— |
|
|
$ |
3 |
|
|
$ |
(3 |
) |
|
$ |
— |
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Earnings before interest and taxes |
$ |
461 |
|
|
$ |
2 |
|
|
$ |
463 |
|
|
$ |
317 |
|
|
$ |
75 |
|
|
$ |
392 |
|
|
18 |
% |
|
Interest, net |
55 |
|
|
— |
|
|
55 |
|
|
80 |
|
|
— |
|
|
80 |
|
|
|
||||||||
Earnings before taxes |
$ |
406 |
|
|
$ |
2 |
|
|
$ |
408 |
|
|
$ |
237 |
|
|
$ |
75 |
|
|
$ |
312 |
|
|
|
||
Taxes |
97 |
|
|
— |
|
|
97 |
|
|
68 |
|
|
7 |
|
|
75 |
|
|
|
||||||||
Effective income tax rate |
23.9 |
% |
|
|
|
23.8 |
% |
|
28.7 |
% |
|
|
|
24.0 |
% |
|
|
||||||||||
Earnings from continuing operations |
$ |
309 |
|
|
$ |
2 |
|
|
$ |
311 |
|
|
$ |
169 |
|
|
$ |
68 |
|
|
$ |
237 |
|
|
31 |
% |
|
Earnings (loss) from discontinued operations |
— |
|
|
— |
|
|
— |
|
|
(3 |
) |
|
27 |
|
|
24 |
|
|
n/m |
||||||||
Net earnings attributable to |
$ |
309 |
|
|
$ |
2 |
|
|
$ |
311 |
|
|
$ |
166 |
|
|
$ |
95 |
|
|
$ |
261 |
|
|
19 |
% |
|
Diluted earnings per share - continuing operations attributable to |
$ |
1.02 |
|
|
$ |
.01 |
|
|
$ |
1.02 |
|
|
$ |
.56 |
|
|
$ |
.22 |
|
|
$ |
.78 |
|
|
31 |
% |
|
Diluted earnings (loss) per share - discontinued operations |
— |
|
|
— |
|
|
— |
|
|
(.01 |
) |
|
.09 |
|
|
.08 |
|
|
n/m |
||||||||
Diluted net earnings per share attributable to |
$ |
1.02 |
|
|
$ |
.01 |
|
|
$ |
1.02 |
|
|
$ |
.55 |
|
|
$ |
.31 |
|
|
$ |
.86 |
|
|
19 |
% |
|
(a)See following table for additional information. |
|||||||||||||||||||||||||||
*The sum of individual per share amounts may not add due to rounding. |
|||||||||||||||||||||||||||
n/m - not meaningful |
|
Three Months Ended |
||||||||||||||||||||||||
|
|
|
|
||||||||||||||||||||||
(millions, except per share amounts) |
Restructuring |
|
Pension |
|
Adjustments |
|
Restructuring |
|
Divestitures |
|
Adjustments |
||||||||||||||
Gross margin |
$ |
1 |
|
|
$ |
— |
|
|
|
$ |
1 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
Administrative expenses |
(4 |
) |
|
— |
|
|
|
(4 |
) |
|
(8 |
) |
|
— |
|
|
(8 |
) |
|||||||
Other expenses / (income) |
— |
|
|
4 |
|
|
|
4 |
|
|
— |
|
|
(64 |
) |
|
(64 |
) |
|||||||
Restructuring charges |
(1 |
) |
|
— |
|
|
|
(1 |
) |
|
(3 |
) |
|
— |
|
|
(3 |
) |
|||||||
Earnings before interest and taxes |
$ |
6 |
|
|
$ |
(4 |
) |
|
|
$ |
2 |
|
|
$ |
11 |
|
|
$ |
64 |
|
|
$ |
75 |
|
|
Interest, net |
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|||||||
Earnings before taxes |
$ |
6 |
|
|
$ |
(4 |
) |
|
|
$ |
2 |
|
|
$ |
11 |
|
|
$ |
64 |
|
|
$ |
75 |
|
|
Taxes |
1 |
|
|
(1 |
) |
|
|
— |
|
|
3 |
|
|
4 |
|
|
7 |
|
|||||||
Earnings from continuing operations |
$ |
5 |
|
|
$ |
(3 |
) |
|
|
$ |
2 |
|
|
$ |
8 |
|
|
$ |
60 |
|
|
$ |
68 |
|
|
Loss from discontinued operations |
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
27 |
|
|
27 |
|
|||||||
Net earnings attributable to |
$ |
5 |
|
|
$ |
(3 |
) |
|
|
$ |
2 |
|
|
$ |
8 |
|
|
$ |
87 |
|
|
$ |
95 |
|
|
Diluted earnings per share - continuing operations attributable to |
$ |
.02 |
|
|
$ |
(.01 |
) |
|
|
$ |
.01 |
|
|
$ |
.03 |
|
|
$ |
.20 |
|
|
$ |
.22 |
|
|
Diluted loss per share - discontinued operations |
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
.09 |
|
|
.09 |
|
|||||||
Diluted net earnings per share attributable to |
$ |
.02 |
|
|
$ |
(.01 |
) |
|
|
$ |
.01 |
|
|
$ |
.03 |
|
|
$ |
.29 |
|
|
$ |
.31 |
|
|
*The sum of individual per share amounts may not add due to rounding. |
|
Three Months Ended |
|||||||||||||||||||||||
|
|
|||||||||||||||||||||||
(millions) |
As Reported |
|
Restructuring |
|
Pension |
|
Divestitures |
|
Loss on debt |
|
Adjusted |
|||||||||||||
Earnings from continuing operations attributable to |
$ |
171 |
|
|
$ |
19 |
|
|
$ |
(8 |
) |
|
$ |
(19 |
) |
|
$ |
57 |
|
|
$ |
220 |
|
|
Add: Net earnings (loss) attributable to noncontrolling interests |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|||||||
Add: Taxes on earnings |
33 |
|
|
6 |
|
|
(3 |
) |
|
19 |
|
|
18 |
|
|
73 |
|
|||||||
Add: Interest, net |
146 |
|
|
— |
|
|
— |
|
|
— |
|
|
(75 |
) |
|
71 |
|
|||||||
Earnings before interest and taxes |
$ |
350 |
|
|
$ |
25 |
|
|
$ |
(11 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
364 |
|
|
Three Months Ended |
|||
|
|
|||
Diluted earnings per share - continuing operations attributable to |
$ |
.56 |
|
|
Add: Restructuring charges, implementation costs and other related costs (1) |
.06 |
|
||
Deduct: Pension settlement (2) |
(.03 |
) |
||
Deduct: Divestitures (3) |
(.06 |
) |
||
Add: Loss on debt extinguishment (4) |
.19 |
|
||
Adjusted Diluted earnings per share - continuing operations attributable to |
$ |
.72 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20201209005227/en/
INVESTOR CONTACT:
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