For fiscal 2010, the company posted earnings of $2.75 per share, which was well above the Zacks Consensus Estimate of $2.61.

The spice maker projects fiscal 2011 earnings between $2.80 and $2.85 per share, in line with the Zacks Consensus Estimate of $2.82.

Quarterly Details

For the fourth quarter total revenue grew 5.9% year-over-year to $979.5 million from the year-earlier quarter, benefiting from positive currency translation, higher volume and product mix. Revenues were also above the Zacks Consensus Estimate of $938 million.

For fiscal 2010, revenues grew 4.5% year-over-year to $3,336.8 million versus $3,192.1 million in fiscal 2009. Annual revenues were higher than the Zacks Consensus Estimate of $3,295 million.

The company provided its outlook for sales for fiscal 2011. McCormick expects sales to grow in the range of 5% – 7% in local currency. Based on the current currency translation rate, the sales growth in fiscal 2011 will be positively affected by 1%.

Segments and Margins

Quarterly revenue for the consumer segment jumped 6% year over year due to an extensive distribution channel and the introduction of new products. For fiscal 2010, revenues for the segment grew 4.6%.

For the industrial segment, fourth quarter sales surged 7% annually in the quarter, benefiting from new product launches in each region, favorable volume and product mix with strong increases in all the three regions; namely Europe, the Middle East and Africa (EMEA) region and China. Annual revenue for the segment expanded 4.4%.

To improve productivity and reduce costs, McCormick has been implementing the CCI program and generated savings of $54 million in 2010, which was well above the company's initial target.

Cash and Balance Sheet

Exiting the year, the company had cash and cash equivalents of $50.8 million, up 28.6% compared with $39.5 million in the prior year. However, the company's cash flow from operating activities dropped to $387.5 million in the year compared with $415.8 million in the prior year.

McCormick primarily competes with Del Monte Foods (DLM) which is expected to report its fiscal third quarter 2011 earnings on March 3, 2010.