McCormick income up 21% in quarter

by FoodBusinessNews.net Staff
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SPARKS, MD. — For the third quarter ended Aug. 31, McCormick & Co., Inc. posted net income of $68.6 million, equal to 53c per share on the common stock, up 21% from $56.8 million, or 44c per share, during the same quarter of the previous year.

Net sales for the quarter were $781.6 million, up 9% from $716.2 million during the same quarter of the previous year.

"Despite a tough economy and volatile material costs, we continue to grow sales and achieve higher profit as reflected in our latest financial results," said Alan D. Wilson, president and chief executive officer. "A double-digit increase in sales of our consumer products was driven by higher volume and product mix, which included results from our 2008 acquisitions of the Lawry’s business and Bill Bee honey, and by pricing actions. Pricing led to an increase in industrial business sales for the third quarter, which was offset in part by reduced volume and product mix to restaurant customers in the U.S. and Europe."

For the nine months ended Aug. 31, McCormick posted net income of $173.4 million, or $1.35 per share, up 22% from $142.5 million, or $1.10 per share, during the same period of the previous year. Net sales for the nine months were $2,269.7 million, up 10% from $2,056.1 million during the same period of the previous year.

"We are committed to investing in the growth of our business, and during the third quarter we completed the acquisition of Lawry’s and also increased the marketing support behind our leading brands," Mr. Wilson said. "The integration of Lawry’s is well under way, and we are making progress with the transition of production as well as product innovation and marketing plans. In the third quarter we stepped up marketing support behind this year’s new products as well as Grill Mates, grinders and seafood items. Acquisitions, marketing support and other investments in our business have us well-positioned for the upcoming holiday season and on-track for strong results in 2008."

For the full-year 2008, the company expects to grow sales 9% to 10% and has increased its earnings per share range by 1c to $2.04 to $2.08.

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