McCormick income up 13% in quarter
March 29, 2011
SPARKS, MD. — With the help of pricing actions and strong results in emerging markets, first-quarter income for McCormick & Co. rose 13%.
For the quarter ended Feb. 28, the company had an income of $76.8 million, equal to 58c per share on the common stock, which compared with an income of $67.9 million, equal to 51c per share, during the same quarter of the previous year. Sales for the quarter were $782.8 million, up 2% from $764.5 million during the same quarter of the previous year.
“We are operating effectively in a tough environment as demonstrated by our first-quarter results,” said Alan D. Wilson, chairman, president and chief executive officer. “In response to a significant increase in raw and packaging material costs, we now have pricing actions in place on a majority of our products. As an additional offset to these cost increases, employees throughout McCormick are engaged in our Comprehensive Continuous Improvement program. CCI is our on-going initiative to improve productivity and reduce cost throughout the organization.
“While conditions in Europe continue to challenge our consumer business in that region, we are growing sales in our other regions with product innovation, new distribution and brand marketing support. Product innovation and new distribution are also driving sales for our industrial business. Across both businesses, we have a growing presence in emerging markets and had particularly strong results in Mexico and China this quarter. Through our joint ventures we are gaining further access to emerging markets and reported a significant increase in profit from these businesses early in 2011.”
The Consumer Business segment had an operating income of $86.9 million, up 9% from $79.7 million during the same period of the previous year. Sales for the segment were $454.1 million, up slightly from $453.6 million during the same quarter of the previous year.
The Industrial Business segment had an operating income of $23.7 million, up 12% from $21.1 million during the same quarter of the previous year. Sales for the segment were $328.7 million, up 6% from $310.9 million during the same quarter of the previous year.