(CPB) Campbell Rewards Shareholders

Campbell Soup Co. (CPB), diligent in rewarding shareholders, announced a share buyback of $1 billion sans expiration date. The new share buyback plan replaces the $1.2 billion which the company had announced in June 2008.

To further accelerate shareholder value, the company also announced a regular quarterly dividend of 29 cents a share payable on August 1, 2011, to shareholders of record as on July 11, 2011.

In a separate development, Campbell also named Denise Morrison as the President and Chief Executive Officer of the company. Denise will take over the reins, effective August 1, 2011, which is also the first day of Campbell’s next fiscal year. The 57 year old lady, Denise, will be the first woman executive to run the world’s largest soup company.

Campbell Soup is one of the world’s leading manufacturers of convenience food products. Furthermore, a strong portfolio of well-established brands, including Campbell’s, Erasco, Liebig, Pepperidge Farm, V8, Pace, Prego, Swanson, and Arnott’s, offer a competitive edge to the company and strengths its well-established position in the market.

The management has been stimulating growth particularly in the U.S. Soup, Sauces and Beverages business segment through investments in product quality, convenient packaging and introduction of new products. The company has also upgraded its marketing efforts and improved retail execution. These initiatives will facilitate in boosting the company’s top-line growth.

However, Campbell Soup operates in a highly competitive food industry and experiences worldwide competition in all of its principal products from such well-established rivals as General Mills Inc. (GIS), H. J. Heinz Co. (HNZ) and Sara Lee Corporation (SLE). This may dent the company’s future performance.

We are maintaining a long-term Neutral recommendation on Campbell Soup. Moreover, the company has a Zacks #3 Rank, implying a short-term Hold rating on the stock.

CAMPBELL SOUP (CPB): Free Stock Analysis Report

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