McCormick income up 36% in quarter

by Staff
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SPARKS, MD. — Cost savings and a favorable business mix in the industrial segment helped boost income for McCormick & Co. 36% during the third quarter.

For the quarter ended Aug. 31, the company had income of $102.4 million, equal to 77c per share on the common stock, which compared with income of $75.1 million, or 57c per share, during the same quarter of the previous year. The company posted sales of $794.6 million, nearly equal to $791.7 million during the same quarter of the previous year.

“In the face of a global economy that remains challenging, we are growing sales, improving margins and increasing profit,” said Alan D. Wilson, chairman, president and chief executive officer. “Recent product introductions like Recipe Inspirations in the U.S., Perfect Shake in the U.K. and Thai chili sauce in China are driving sales, along with new flavor solutions for industrial customers. Our marketing programs are emphasizing the convenience, value, health and great taste of our leading brands. McCormick employees are improving productivity and reducing costs throughout the business with our Comprehensive Continuous Improvement (C.C.I.) program. C.C.I.-led cost savings are now expected to exceed $45 million in 2010. These savings, together with a more favorable mix of products, increased gross profit margin nearly 2 percentage points in the third quarter. Due in large part to our excellent progress with margin improvement initiatives, we have raised our projected growth rate for 2010 earnings per share.”

For the nine months ended Aug. 31, the company had income of $236.5 million, or $1.78 per share, up 29% from $183.5 million, or $1.40 per share, during the same period of the previous year. Sales for the nine months were $2,357.4 million, up 4% from $2,267.5 million.

For the full-year, the company anticipates earnings per share are expected to be $2.57 to $2.61 on a comparable basis.

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