UPDATE: McCormick Reports Upbeat Q1 Profit

McCormick & Company Inc

reported a drop in its first-quarter profit. McCormick's quarterly profit declined to $74.5 million, or $0.55 per share, versus $76.8 million, or $0.57 per share, in the year-earlier period. The company's sales climbed to $906.7 million from $782.8 million. However, analysts were expecting earnings of $0.53 per share on sales of $863.7 million. Cost of goods surged to $551.4 million versus $454.6 million, while selling and administrative expenses rose to $242.8 million from $217.6 million. McCormick continues to project 2012 earnings of $3.01 to $3.06 per share, versus analysts' estimates of $3.04 per share. McCormick shares closed at $53.02 yesterday.