Mead Johnson Nutrition Company (NYSE: MJN) announced today its financial results for the fourth quarter and year ended December 31, 2012.
- Net sales of $3,901.3 million for the full year 2012 were up six percent from $3,677.0 million in the prior year. Excluding an unfavorable foreign exchange impact, sales increased seven percent. Constant dollar sales for the Asia/Latin America segment grew 12 percent, partially offset by a three percent decline in the North America/Europe segment.
- GAAP net earnings were $2.95 per diluted share for 2012, an increase of 19 percent compared to $2.47 per diluted share in the prior year.
- Non-GAAP (1) net earnings of $3.08 per diluted share for 2012 were up 10 percent from $2.79 per diluted share in 2011.
- Fourth quarter 2012 sales of $981.1 million were up eight percent from $911.3 million in 2011, with constant dollar sales up seven percent. Sales for the Asia/Latin America segment grew nine percent excluding a favorable foreign exchange impact, while the North America/Europe segment grew four percent.
- GAAP net earnings in the fourth quarter were $0.66 per diluted share, compared to $0.42 per diluted share in the prior year, benefiting from higher sales, the timing of pension settlement expense and a lower effective tax rate, partially offset by higher demand-generation investments.
- Non-GAAP net earnings totaled $0.72 per diluted share for the fourth quarter of 2012, compared to $0.52 per diluted share in 2011.
- The company provided full-year 2013 GAAP EPS guidance of $3.20 to $3.28. Excluding specified items, estimated at $0.02 per diluted share, the full-year 2013 non-GAAP EPS is expected to be in the range of $3.22 to $3.30.
(1) See “Non-GAAP Financial Measures” and the reconciliation of GAAP and non-GAAP results included in this release.
“We are pleased with our strong sales and earnings performance in the fourth quarter and the overall performance of the business in 2012,” said Chief Executive Officer Stephen W. Golsby. “The Asia/Latin America segment delivered strong growth, while notably in China, we recovered additional market share in the fourth quarter, with distributors' inventory restored to normal levels by the end of the year. The North America/Europe segment contributed four percent sales growth in the fourth quarter as we made excellent progress building non-WIC* market share in the United States. For the company, full-year constant dollar sales grew at seven percent with non-GAAP earnings per share increasing 10 percent. Tight management of general and administrative spending, coupled with further reductions in our effective tax rate, more than offset the impact of higher commodity costs and helped to fund continued increases in demand-generation investments to drive longer-term growth. Notably, the global Enfa brand reached a major milestone in 2012, exceeding $3 billion in sales.”