The cost-cutting efforts was part of a larger effort to make the soup giant a leaner company and drove Campbell's 11 percent earnings increase in the second quarter over the prior year despite major declines in core sales categories.
The Maxton plant, which has 1,200 employees, streamlined its operations by adding an aseptic line that is filling the local manufacturer's needs that had normally been provided by an outside plant, according to company spokesman Anthony Sanzio. This cut transit costs between the two plants.
The plant opened in 1980 and produces condensed soups and ready-to-serve soups, such as Select Harvest and Swanson broth.
He did not have a breakdown of savings at individual plants.
This and other cost-cutting initiatives, including reduced marketing expenditures, was the largest part of the company's earning gains, driving the gross profit margin up more than a full percentage point to 40.1 for the quarter and more than two percentage points to 41.2 for the first half of the fiscal year.
Sales had a marginal increase with a 1 percent rise over last year's second quarter, with U.S. soup sales declining by 8 percent, the company reported. This drop was largely due to a decline in ready-to-serve soups as sales in that segment dropped 18 percent. Condensed soup sales were the same as last year.
Douglas R. Conant, Campbell's president and CEO, discussed the quarterly increases in a press release.
"In the (second) quarter, we delivered good earnings growth driven mainly by overall strong cost management, productivity gains and favorable currency," Conant said. "In particular, our baking and snacking and international soup, sauces and beverages segments improved their earnings performance."
Despite the large drop in soup sales, Conant said the company remains competitive in the field and must do a better job competing with ready-to-serve meals other than soup."
He was optimistic about the company's long-term outlook.
"Looking ahead, we remain on track to deliver good bottom-line growth for the year supported by continued cost management and productivity gains. Based on our results through the first half and our plans for the remainder of the year, last week we reiterated our full-year guidance for adjusted net earnings per share growth and adjusted earnings growth before interest and taxes, despite more modest assumptions for sales growth."
Campbell Soup, A Fortune 500 company founded in 1869, is a leading manufacturer of soup and other food products worldwide.
The company owns a number of major brands, including Campbell's, Pepperidge Farm, Arnott's and V8.
Campbell Soup employs 18,700 and generated $7.6 billion in sales in 2009.






