Campbell Soup profit beats Wall Street but sales still light

Campbell reported higher-than-expected quarterly earnings on Friday, helped by cost cuts and sales of V8 juice drinks, even as U.S. soup sales fell.

Campbell has been battling growth from lower-priced private-label soup competitors and companies that make other simple meals like frozen foods. It had tried to counter that pressure with promotional spending and new products.

The company on Friday forecast a sales increase of 2 percent to 3 percent for the year, below its long-term target of 3 percent to 4 percent. That would put 2011 sales at US$7.84 billion to US$7.92 billion. Analysts on average forecast US$7.91 billion.

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