This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Mead Johnson Nutrition Reports Third Quarter Earnings; Year To Date Constant Dollar Sales Up 7 Percent

Stocks in this article: MJN

Mead Johnson Nutrition Company (NYSE: MJN) announced today its financial results for the third quarter ended September 30, 2012.

  • Net sales of $921.3 million in the quarter were down one percent versus the third quarter of 2011. Excluding the unfavorable impact of foreign exchange, sales increased one percent.
  • GAAP net earnings were $0.69 per diluted share for the third quarter of 2012 compared to $0.70 per diluted share in 2011.
  • Non-GAAP (1) net earnings were $0.71 per diluted share for the third quarter of 2012 compared to $0.78 per diluted share a year earlier.
  • Constant dollar sales for the Asia/Latin America segment grew three percent in the quarter. Sales growth for the segment was reduced by eight percent from planned distributor inventory reductions in China, as well as the difficult comparison to the prior year period when customers in Asia made higher purchases in advance of our SAP launch. Excluding China/Hong Kong, the rest of the Asia/Latin America segment delivered double-digit growth.
  • For the North America/Europe segment, both regions contributed to a four percent constant dollar sales decline. The decline in Europe was due to a challenging comparison with higher sales in the prior year after the transition to a new distributor model and weak current year economic conditions. Sales in North America were down from lower market share, attributed to the impact of the unfounded media reports in December 2011 alleging product contamination, and market contraction.
  • Notwithstanding lower sales, demand-generation investments increased as compared to the prior year, which reduced current year earnings by $0.04 per diluted share.
  • Earnings in the third quarter of 2012 included a $0.02 loss per diluted share from foreign currency re-measurement on U.S. dollar denominated balances held by our foreign subsidiaries. In contrast, earnings in the third quarter of 2011 benefited from a $0.05 gain per diluted share from the foreign currency re-measurement .
  • Earnings in the third quarter of 2012 also included a benefit of $0.06 per diluted share from adjustments to prior years’ tax accruals.
  • Full-year GAAP EPS guidance, which includes specified items estimated at $0.11 per diluted share, is expected to be in the range of $2.91 to $2.96, previously estimated at $2.95 to $3.05. Full-year non-GAAP EPS is expected to be in the range of $3.02 to $3.07, previously estimated at $3.04 to $3.14. (1) See “Non-GAAP Financial Measures” and the reconciliation of GAAP and non-GAAP results included in this release.

“We are pleased with the strong growth we delivered in most of our emerging markets during the third quarter,” said Chief Executive Officer Stephen W. Golsby. “As detailed in our July earnings call, however, we entered the third quarter with lower market share as well as distributors carrying higher inventories in China. While the sales impact from these factors dampened growth for the Asia/Latin America segment, we are seeing good progress in both share recovery and inventory reductions in China, with further improvement expected in the fourth quarter. Importantly, sales growth for the Asia/Latin America segment excluding China/Hong Kong was at a strong double-digit rate. In the North America/Europe segment, while we still see category contraction in the U.S. due to lower births and reduced consumption, we continue to recover market share following the unfounded media reports in December 2011 of alleged product contamination. Despite the temporary challenges we face in China, we are encouraged by recent trends, have full confidence in our strategies, and continue to invest strongly in the business.”

1 of 7

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs