US food maker Campbell Soup Company has raised its quarterly earnings guidance due to better-than-expected volume results for its US soup and beverage businesses.

The company said it now expects earnings per share of 57 cents for second quarter to 1 February, compared to a previous estimate of between 52 cents and 54 cents per share. In the year-ago quarter, Campbell reported earnings per share of 56 cents.

However, the company is maintaining its earnings per share guidance for fiscal 2004 of approximately $1.58. In the second half of the fiscal year the company said it expects to have continued higher marketing investment in its US soup business. In addition, the company cited slower category growth in its US pasta sauce business and increased competitive challenges in its Australian snack foods business.