Income for McCormick down 5% in quarter

by Staff
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SPARKS, MD. — Net income for McCormick & Co., Inc. was down 5% in the quarter ended May 31.

For the second quarter, the company posted income of $50.7 million, equal to 39c per share on the common stock, which compared with $53.3 million, or 41c per share, during the same quarter of the previous year. Net sales for the quarter were $757.3 million, down 1% compared with $764.1 million during the same quarter of the previous year.

"McCormick continues to achieve solid financial results in a tough economy," said Alan D. Wilson, chairman, president and chief executive officer. "Sales growth for our U.S. consumer business was particularly strong this quarter as a result of effective marketing support, the addition of Lawry’s and continued consumer interest in our leading brands. This more favorable business mix, together with CCI, our restructuring program and other cost reductions, led to profit and margin increases that were right in line with our 2009 objectives.

"We are effectively navigating through a difficult global economic environment. We were able to manage an unexpected bankruptcy cost this quarter along with further volatility in raw material costs and foreign currency exchange rates and still deliver our targeted profit growth."

For the six months ended May 31, the company had net income of $108.4 million, or 83c per share, up 3% from $104.8 million, or 82c per share, during the same period of the previous year. Sales for the six months were $1,475.8 million, down 1% from $1,488.1 million.

The company has reaffirmed its 2009 earnings per share projection of $2.24 to $2.28.

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