Milling & Baking News - January 12, 2010 - 25

Stock Market Review



International, after 20
years with the company.
During his tenure, Pep35.5%
siCo International grew to
be the corporation's largest division, consistently
19.2%
14.7%
achieving the highest lev13.2%
el of growth among Pep3.6% 3.0%
siCo's various units.
1.0%
During 2009, PepsiCo's
-1.4%
Frito-Lay business was
-4.9%
the strongest leg of its
-10.7%
PepsiCo Americas Food
business.
-21.5%
-28.0%
"Across P.A.F., we grew
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
share in virtually every
market where we operate,"
crops generally were key factors in the Richard Goodman, c.f.o., said during
an Oct. 8 conference call with analysts.
weak financial results.
Patricia Woertz, chairman, presi- "And key long-term growth platforms
Campbell Soup Co.
Shares of Campbell Soup Co., Cam- dent and c.e.o., was optimistic going outside of our core portfolio such as
nuts and seeds, bread snacks and baked
den, N.J., rose 13% in 2009 after declining into calendar 2010.
"Earnings were significantly better products gained traction, each growing
16% in 2008. The share price gains were
than the second half of fiscal 2009," more than 20% year-to-date."
achieved despite flagging net income.
While PepsiCo made no major exterThe company posted earnings of she said after announcing first-quarter
$736 million in the year ended Aug. results. "As we advance our growth nal acquisitions in 2009, the company,
2, equal to $2.09 per share on the com- strategy, we are using our financial together with The Pepsi Bottling Group,
mon stock, down from $1,165 million, strength to build shareholder value. announced plans to invest $1 billion in
Looking ahead, we see demand im- the food and beverage business in Rusor $3.12 per share, in fiscal 2008.
Operating earnings within the proving in some key markets, and we sia during the next three years.
"This investment reflects very clearly
Baking and Snacking division of the have the assets and acumen to capture
our great confidence in Russia and our
Campbell Soup Co. totaled $262 mil- value as the global economy resets."
Capped by an 83% decline in the long-term commitment to this very
lion in the year ended Aug. 2, up 118%
from $120 million in fiscal 2008. Ex- fourth quarter, net income at ADM in important market," said Indra Nooyi,
cluding special items, the division's the year ended June 30 was down 5%, PepsiCo chairman and c.e.o.
pressured by higher corn costs, lower
profits were up modestly.
During a September conference call, average selling prices and weaker de- Kraft Foods, Inc.
With only a 1% gain in 2009, shares
Douglas R. Conant, president and mand. Net sales were $69,207 million,
c.e.o., was asked whether consumers down 1% from $69,816 million in the of Kraft Foods Inc. did not nearly recover the 18% decline sustained in
were trading down from Pepperidge same period a year ago.
In May 2009, ADM said it completed 2008. The closing price of $27.18 was
Farm. Without denying there was any
effect, Mr. Conant remained upbeat the acquisition of the Schokinag-Scho- well above the March low of $20.81,
kolade-Industrie Herrmann GmbH & but was down 38% from the all-time
about the brand and its prospects.
"We did grow Pepperidge Farm last Co. KG. The acquisition first was an- high set in June 2002, not long after the
company's initial public offering.
year, top and bottom line, so we feel nounced on Jan. 23, 2009.
Late in the year, Northfield, Ill.Headquartered in Mannheim, Germavery good about it," Mr. Conant said.
"The growth slowed relative to prior ny, ADM Schokinag is one of Europe's based Kraft initiated an effort to acyears. Even in a tough year we've got a leading producers of industrial chocolate quire Cadbury P.L.C. in a transaction
great brand, and we actually are seeing and cocoa powder with manufacturing valued at roughly $17 billion. Cada little better traction of our brands in facilities in Mannheim and in Manage, bury has resisted the offer, and the
Pepperidge Farm right now. So, knock Belgium, as well as sales offices in Lud- saga continued last week with Kraft
raising its bid for Cadbury.
on wood, we should have another solid low, England, and Bakersfield, Calif.
After issuing Kraft's most recent
year in Pepperidge Farm."
quarterly financial results, the comPepsiCo, Inc.
Shares of PepsiCo, Inc., Purchase, pany's chairman and c.e.o. Irene
Archer Daniels Midland Co.
While its shares were up 9% in 2009, N.Y., were up 11% in 2009, partly recov- Rosenfeld, said Kraft would maintain
Archer Daniels Midland Co., Decatur, ering from a 28% decline in 2008. For a disciplined approach in its pursuit of
Ill., struggled in its efforts to grow the first nine months of fiscal 2009, net acquisition candidates.
profitability in 2009. The share price income was $4,424 million, or $2.81 per
"Our criteria include accretion
share, down slightly from $4,499 mil- to cash e.p.s. in the second year,
gain followed a drop of 38% in 2008.
Earnings in the company's fiscal lion, or $2.79 per share. Net sales for the delivering a return on investment
2010 first quarter were down 53% from first nine months were $29,935 million, well in excess of our cost of capital,
the same period a year earlier, though down 2% from $30,522 million.
and maintaining both our investNotable at the company in 2009 was ment grade credit rating and our
a large part of the decline reflected a
the retirement of Michael D. White, dividend," she said. "With or withchange in LIFO inventory valuations.
Sluggish demand for ethanol and vice-chairman and c.e.o. of PepsiCo out Cadbury, Kraft Foods is well
same period of fiscal 2009. Net
sales in the first half of fiscal
2010 totaled $7,597 million, up
1.2% from $7,508.2 million.
"Our businesses are growing, and General Mills people
in our plants, sales teams and
offices worldwide are delivering great performance,"
said Kendall Powell, chairman and c.e.o. "As we move
into the second half of fiscal
2010, we plan to make additional reinvestments in marketing and merchandising
programs to fuel continued
growth for our brands this
year and into fiscal 2011."

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Milling & Baking News - January 12, 2010

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