Earnings
McCormick Loses Its Spice, Posts 5% Drop
Jeanine Poggi
06/25/09 - 09:09 AM EDT
For a company that specializes in spices, McCormick's(MKC Quote) quarterly earnings report was surprisingly bland.
The food and seasoning maker posted a 5% decline in second-quarter earnings, hurt by lower sales in its industrial segments, predominantly overseas.
During the quarter the company earned $50.7 million, or 38 cents a share, compared with $53.3 million, or 41 cents, in the year-ago period.
Still, excluding restructuring charges, the company earned 42 cents, beating Wall Street's forecast by a penny.
The quarter was helped by a $20 million increase in marketing spending during the year. McCormick turned its focus to pushing its Lawry's business, which it acquired last summer from Unilever(UL Quote).
Total revenue dropped to $757.3 million, a 1% decline. In McCormick's industrial segment, which sells seasonings and flavors to food manufacturers and the food service industry, revenue fell 7% to $322.2 million, with the most weakness in its Europe, Middle East and Africa market, where sales tumbled 28%.
Sales in McCormick's larger consumer segment, which sells food products through retail outlets, rose 4% to $435.1 million.
The company reaffirmed its full-year outlook in the range of $2.24 to $2.28 per share.