Campbell Soup cuts profit forecast as costs rise

Higher costs are hurting Campbell Soup. The food maker slashed its annual profit forecast on Wednesday, saying rising expenses related to raw materials and transportation will bite into earnings.

The company plans to hike prices later this year, but it still expects higher costs to dent its profit margins.

Food manufacturers like Campbell are facing global shipping logjams amid surging demand as the U.S. economy reopens.

And customers who had stocked up on Campbell products like its Pepperidge Farm cookies, namesake soups, and Prego pasta sauces amid the health crisis are dining out. Quarterly sales of soups and pasta sauces dropped 14%, contributing to the overall sales decline of 11%.

The company now expects annual sales will fall more steeply than it previously projected.

Shares of Campbell Soup, which have fallen 8% this quarter, dropped 7% in early trading Wednesday.