Campbell Soup updates 2008 profit guidance

Campbell Soup Co. said Monday its 2008 profit will be at the upper end of the range it had previously expected, a hopeful sign for a company coming off a down quarter.

The news sent the Camden-based company's stock up 4 percent.

Campbell says it now expects earnings per share excluding one-time charges and gains to be at the top end of its range of 5 percent to 7 percent growth. That works out to $2.05 to $2.09 per share.

Thomson Financial says analysts expect profit of $2.06 per share for the year.

"Maybe it's the end of the earnings misses, which they've had a string of this year," said Mitchell Pinheiro, who follows Campbell for Janney Montgomery Scott.

Pinheiro said investors were also glad to see Monday's announcement of a stock buyback program _ a sign that the company's cash-flow is strong.

Campbell's had stabilized, then even spurred growth in sales of its iconic and high-margin condensed soup business over the last several years. But its third-quarter results reported May 19 showed that progress had stopped.

Company officials vowed to do better as they announced that declining soup sales and higher ingredient prices contributed to a difficult quarter. That news sent the stock down by more than 6 percent; the price still has not recovered.

It rose Monday $1.28 to close at $33.46.

Tuesday is another big day for those who follow the company: Campbell's is giving a report on its fledgling efforts to sell its soups in China and Russia as part of a series of presentations to investors.

Campbell's entered those huge markets a year ago with the hopes of making money there within about three years.

The food maker also says it will buy back up to $1.2 billion of its shares. The company says its board authorized the new share buyback program through the end of the company's 2011 fiscal year.

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AP Business Writer Lauren Shepherd in New York contributed to this article.