Campbell Soup Company (NYSE:CPB) Q4 2019 Earnings Conference Call Transcript
Aug 30, 2019 • 08:30 am ET
Anthony P. DiSilvestro
calculate the dilution from our divestitures, please note that the interest benefits shown here is only a partial year. There was an estimated incremental $0.07, which will wrap into 2021.
Turning to some of the key assumptions underlying our guidance. Although moderating somewhat, we expect cost inflation to be approximately 3% in 2020. As we have successfully delivered in the past, we expect ongoing supply chain productivity gains excluding the benefit of our cost savings program of approximately 2% to 3% of cost of products sold. Against our cost savings program, we expect to deliver an additional $140 million of cost savings, including a meaningful contribution from Snyder's-Lance synergies. Including the anticipated benefit of divestiture proceeds, we are forecasting interest expense in the range of $290 million to $300 million.
Below the line and comparable to this year, we expect the adjusted tax rate to be approximately 24%. We are forecasting capital expenditures of approximately $350 million, a decrease from 2019 spending, reflecting the divestiture program. Lastly, and as Mark mentioned, I will be leaving the Company to pursue other interests. I have very much enjoyed my time here and certainly wish the Company all the success going forward.
That completes my review, and now I'll turn it back to Ken for the Q&A.
Thanks, Anthony. We'll be happy to take your questions. Candace, let's open the lines and take our first question.