McCormick Reports Mixed Results, Reiterates 2011 Guidance In
March 29, 2011
McCormick & Company (NYSE:MKC) reported Q1 EPS of $0.57, beating the consensus estimate for $0.54 per share. Revenue for the quarter was up 2.4% year-over-year to $782.8 million, vs. the expected $802.9 million.The company expects 2011 EPS of $2.80 to $2.85, vs. the consensus estimate for $2.82 per share.Alan D. Wilson, Chairman, President and CEO, commented, "We are operating effectively in a tough environment as demonstrated by our first quarter results. 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."