Campbell Soup Company has announced that its second-quarter profits rose to $285 million from $254 million a year ago. Although soup sales in the U.S. fell by 1%, sales of baked goods made up for the difference. Like other food companies, Campbell also implemented cost-cutting measures to improve margins. Last year, the company increased prices for V8 juices, soups, and sauces by about 2.3% while reducing advertising costs. The company also introduced all-natural sea salt in some of its most popular soups and vegetable juices and lowered the levels of salt in many soups marketed to children. With demand in the emerging markets rising faster than demand in the U.S., the company plans to start testing soups in China and Russia this year.
Whole Foods to buy Wild Oats
Whole Foods Market, Inc., an Austin-based retailer of natural and organic foods, will acquire Wild Oats Markets, Inc. The deal will cost around $565 million, including $106 million in debt. Whole Foods was founded in 1980 and currently operates more than 180 locations in the U.S., Canada, and the UK. The firm has a history of successful acquisitions adding to its growth. Wild Oats Markets, a leading retailer of natural and organic foods, has annual sales of approximately $1.2 billion. It was founded in Boulder, CO, in 1987 and currently operates 110 stores in the U.S. and Canada. For Whole Foods, the move comes on the heels of growing competition in the organic foods arena with larger players like Wal-Mart stepping in.
Goodyear Tire & Rubber Co. posts loss
Ohio-based Goodyear Tire & Rubber Company posted a loss of $358 million for the fourth quarter. This occurred in the face of a three-month strike in which nearly 14,000 workers from its 16 plants staged a protest. The strike cost the company $367 million, or $2.07 per share. However, a small increase in sales was noted in the fourth quarter of 2006 due to higher prices in the company's international businesses. Additionally, it recently gained about $0.86 per share due to a tax dispute concluding in its favor in Germany.
Chiquita appoints new sales and customer development VP
Chiquita Brands International, a marketer and distributor of fresh and value-added food products, has named Michael J. Holcomb Vice President of Sales and Customer Development. With nearly two decades of experience in the consumer packaged-goods industry, Holcomb will now look after the company's global sales. Prior to this appointment, he worked for the U.S. division of Kao Brands—a Japanese consumer packaged-goods company—as general manager and vice president. He also has 18 years of experience in different capacities at Procter & Gamble. Holcomb takes over from Jim Gallagher, who is leaving Chiquita to pursue a business venture.
J.C. Penney posts fourth-quarter results
J.C. Penney Corporation, Inc., has reported that its fourth-quarter profits decreased by 13% from their level last year. For the period ending February 3, the company earned $477 million; the figure was $551 million for the same quarter a year ago. However, revenue grew by nearly 7% this year, spurred by an increase of 4.1% in store sales of jewelry, shoes, and children's apparel. Revenue for this year now stands at $6.66 billion, compared to $6.2 billion last year. The net income for the entire year of 2006 was $1.15 billion, compared to $1.09 billion for the previous year.
CSK Auto Corp. posts strong sales figures
CSK Auto Corporation, a U.S.-based auto-parts retailer, has announced a 15% increase in sales for the fiscal year ending February 4. With this, total sales have increased to $1.87 billion. Revenue for the fourth quarter also increased to $464 million from $396 million last year. It should be noted that the latest fourth quarter and fiscal year had an extra week of sales. The company also achieved its goal of opening 55 new stores over the past year. At the fiscal year's end, the company managed 1,327 stores in 22 states, although no reports have yet been released on earnings for the period.
