This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Mead Johnson Nutrition Management Discusses Q2 2012 Results - Earnings Call Transcript

These were partially offset by a lower gross margin due in large part to higher dairy cost in North America, increased investments in advertising and promotion and the timing of pension settlement expenses.

While we are justifiably pleased with our past 2012 results, we expect lower growth in the second half of the year, due in part to a weak global economy. With several European countries now in recession and the continued weak performance of the U.S. economy, economic growth and consumer spending in key exporting market, most notably China, have slowed. Consequently, we're experiencing a reduction in the rate of category growth in China. Despite this near-term softness, we have continued high confidence for longer-term category growth in China, supported by a rapidly growing middle class. Kasper will go into more detail on market share trends in China, but it's also clear we gave back some market share in the second quarter after exceptional gains over the last few years.

We believe this is a temporary phenomenon, and our clear intent is to rebuild share growth in the second half of the year. As we stated previously, the market in China is highly competitive and we will inevitably see share fluctuations from time to time. We have operated in China for almost 20 years and have seen and overcome bumps in the road in the past. We're confident in our business model, strategies and investments, and we intend to continue to deliver compelling growth in China over the medium and longer term.

We currently anticipate full year global sales growth of 8% to 9% on a constant dollar basis, down from the 9% to 11% guidance in our last call. While our growth in China has slowed, we continue to see strong performance across markets in Southeast Asia and Latin America and an improving position in the United States. In absolute terms, our projected sales growth in 2012 remains very strong. We continue to expect non-GAAP earnings on a full year basis to range from $3.04 to $3.14 per share. There are always a number of moving parts at work, and 2012 is no exception. A sustainable and lower tax rate coupled with favorable foreign exchange gain is expected to offset the impact of lower sales growth.

Read the rest of this transcript for free on seekingalpha.com

3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

Chart of I:DJI
DOW 17,745.98 -5.41 -0.03%
S&P 500 2,108.63 +0.06 0.00%
NASDAQ 5,128.7850 +17.0520 0.33%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs