McCormick income up 23% in year

by Staff
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SPARKS, MD. — Cost savings and higher sales driven by new product innovation and expanded distribution helped contribute to a 23% increase in net income for McCormick & Co. during fiscal year 2010.

For the year ended Nov. 30, the company had income of $370.2 million, equal to $2.79 per share on the common stock, which compared with income of $299.8 million, or $2.29 per share, during the previous year. Sales for the year were $3,336.8 million, up 5% from $3,192.1 million during fiscal 2009.

“In an economic environment that remains difficult in many of our major markets, we delivered strong financial performance that met or exceeded each of our financial goals for 2010,” said Alan D. Wilson, president and chief executive officer. “Our growth initiatives and operational achievements drove increases in both sales and profit. Interest in flavor continues to grow, and consumers and customers rely on McCormick for great-tasting, high quality products. That’s the essence of our business — we bring passion to flavor.

“In 2010 we grew sales with new product innovation and expanded distribution, as well as a $21 million increase in brand marketing support. This investment in our brands was fueled by our margin improvement. To achieve this higher margin, we improved productivity and reduced costs throughout our operations with C.C.I., our Comprehensive Continuous Improvement program. Cost savings reached $54 million in 2010, which was 35% ahead of our initial target for the year. Margins were also positively impacted by our progress toward a more favorable mix of products in our industrial business. We not only improved gross profit margin for the total company but reached an 8% operating income margin for our industrial business.”

For the fourth quarter ended Nov. 30, the company had income of $133.6 million, or $1 per share, up 15% from $116.4 million, or 89c per share, during the same quarter of the previous year. Sales for the quarter were $979.5 million, up 6% from $924.5 million during the same quarter of the previous year.

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