McCormick Reports Growth In Sales And Profit For Third Quarter And Provides Latest 2014 Financial Outlook

SPARKS, Md., Oct. 2, 2014 /PRNewswire/ -- McCormick & Company, Incorporated (NYSE: MKC), a global leader in flavor, today reported increased sales and profit results for the third quarter ended August 31, 2014 and provided the latest outlook for fiscal year 2014.

• McCormick grew third quarter sales 3% and operating income 6%, with increases in both the consumer and industrial businesses.
• Earnings per share rose 21% to $0.94 from $0.78 in the year-ago period primarily due to higher operating income and a favorable tax rate.
• The company raised its outlook for 2014 adjusted earnings per share to $3.30 to $3.37, due primarily to the favorable tax rate recorded in the third quarter.

McCormick's third quarter sales rose 3% from the year-ago period and in local currency, the increase was 2%.  In local currency, consumer business sales rose 1%, mainly driven by pricing actions.  Industrial business sales grew 3% in local currency, with higher volume and product mix, as well as pricing actions.  Across both business segments, higher sales and cost savings from the company's CCI program led to a 6% increase in operating income in the third quarter of 2014, which included a $2 million impact from special charges.

Earnings per share rose 21% to $0.94 in the third quarter of 2014 from $0.78 in the year-ago period.  Together, higher operating income and income from unconsolidated operations accounted for $0.09 of this increase and a favorable tax rate contributed another $0.05.  The lower tax rate reflected the company's current business mix across tax jurisdictions, final regulations clarifying the impact of a tax law change in France and other discrete tax items.  Also contributing to the year-on-year increase in earnings per share this quarter was a reduction in shares outstanding.

For the first three quarters of 2014, net cash provided by operating activities reached $276 million, an increase of $48 million from the year-ago period.  Higher net income and lower retirement plan contributions had a favorable impact to cash flow this period. Full report.