McCormick Reports Financial Results For Second Quarter And Reaffirms 2014 Financial Outlook

SPARKS, Md., June 26, 2014 /PRNewswire/ -- McCormick & Company, Incorporated (NYSE: MKC), a global leader in flavor, today reported sales and profit results for the second quarter ended May 31, 2014 and reaffirmed its outlook for fiscal year 2014.

Chairman's Remarks

• McCormick grew second quarter sales 3%, with increases in both its consumer and industrial businesses.
• Earnings per share rose 8% to $0.64 from $0.59 in the year-ago period.
• For fiscal year 2014, the company reaffirmed its plans to grow sales 3% to 5% and report earnings per share of $3.22 to $3.29.

Alan D. Wilson, Chairman, President and CEO, commented, "We achieved further growth in our business this quarter, with year-to-date increases of 5% in sales, 9% in earnings per share and nearly $50 million of additional cash flow from operations.  Demand for flavor is growing globally and McCormick is meeting this demand with its range of products that include innovative new items, healthy recipe ideas, ethnic cuisine and family favorites.   In the second half, we are expanding our product offerings with new skillet sauces, gluten-free recipe mixes, premium herbs and other items. We also plan an increase in marketing support to build our brand equity and drive sales.  We are fueling this growth with our Comprehensive Continuous Improvement (CCI) program.  Through CCI, we are improving productivity in operations around the world and are on-track to reach at least $45 million in 2014 cost savings.

"We continue to adapt to a changing environment as we pursue global growth opportunities and address competitive challenges in certain markets.  We are making progress with our actions to drive sales and reaffirm our financial outlook for 2014.  In addition to higher sales and profit, we continue to expect strong cash flow from our business and remain committed to a balanced use of cash to build shareholder return and invest in growth.  Through the first half, we returned $223 million to shareholders in the form of dividends and share repurchases, up 22% from the first half of 2013.  McCormick is well-positioned for the future, with a great business, effective growth strategies and employees around the world engaged in our success." Full report.