McCormick Reports First Quarter Results, Provides Latest 2015 Financial Outlook

March 24, 2015

SPARKS, Md., March 24, 2015 /PRNewswire/ -- McCormick & Company, Incorporated, a global leader in flavor, today reported financial results for the first quarter ended February 28, 2015 and provided the latest outlook for fiscal year 2015.

First Quarter 2015 Results

McCormick's first quarter sales rose 2% from the year-ago period and in constant currency, the increase was 6%.  In constant currency, consumer business sales rose 5% due to increased volume and product mix driven by product innovation, brand marketing support and expanded distribution.  Industrial business sales grew 7% in constant currency, with higher volume and product mix, as well as pricing actions.

Operating income was $94 million in the first quarter and excluding special charges, adjusted operating income was $122 million compared to $125 million in the first quarter of 2014.  In constant currency, adjusted operating income rose 1% from the year-ago period, with the favorable impact of sales growth and cost savings, offset in part by the unfavorable impact of higher material input costs and increased retirement benefit expense.  In the upcoming quarters, the company expects a more favorable impact on operating income from the execution of pricing actions and increase in cost savings.  In 2015, the company expects to record $30 million in special charges mainly for costs associated with the company's North America effectiveness initiative and actions in EMEA, and of this amount, $28 million of special charges were recorded in the first quarter.

Earnings per share was $0.55 in the first quarter of 2015.  Excluding the $0.15 impact of special charges, adjusted earnings per share was $0.70 compared to $0.62 in the first quarter of 2014.  This increase of $0.08 was mainly due to a more favorable tax rate and higher income from unconsolidated operations. Net cash provided by operating activities was $96 million compared to $77 million in the first quarter of 2014.

For the 2015 fiscal year, the company reaffirmed its expected constant currency growth rate for sales, adjusted operating income and adjusted earnings per share. View full report here.