This Day On The Street
Continue to site right-arrow
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

On a non-GAAP basis, which excludes specified items, net earnings attributable to shareholders totaled $144.8 million, or $0.71 per diluted share, for the third quarter of 2012, compared with $161.0 million, or $0.78 per diluted share, for the same quarter a year ago.

Third Quarter Segment Results

Sales in the Asia/Latin America segment were $639.9 million for the third quarter of 2012, up one percent from $636.1 million in 2011. Sales growth increased eight percent from price, offset by a decline of five percent from volume and a two percent reduction from foreign exchange. Sales growth for the segment was reduced by planned distributor inventory reductions in China, as well as a difficult comparison to the prior year period when customers made higher purchases in advance of our SAP launch in Asia. Excluding these factors, constant dollar sales would have increased by 11 percent. In addition, a sales loss from lower market share in China was more than offset by sales increases in the other markets of Asia/Latin America and from the Argentine acquisition in March 2012. EBIT totaled $190.7 million, down four percent compared with $198.4 million in the third quarter a year ago. The decrease in EBIT was mainly related to higher advertising and promotion investment to support new product launches.

The North America/Europe segment reported net sales of $281.4 million for the third quarter of 2012, down six percent from $297.8 million in 2011. Sales growth increased three percent from price, offset by a decline of seven percent in volume and a two percent reduction from foreign exchange. The volume reflected a challenging comparison in Europe from higher sales in the prior year after the transition to a new distributor model, and weak economic conditions in the current year. In addition, the decrease in volume reflected lower U.S. category consumption and births, as well as lower market share due to the impact of unfounded media reports in December 2011 of alleged product contamination. EBIT totaled $55.6 million, compared with $71.9 million in the third quarter a year ago. The decrease was primarily related to the sales decline, as well as lower gross margins from higher commodity costs and unfavorable manufacturing variances from lower production volumes.

3 of 7

Select the service that is right for you!

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!


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

  • 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