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