McCormick Beats Q1 Expectations

reported stronger-than-expected results for the fiscal first quarter on Tuesday. The Sparks, Maryland-based company posted quarterly profit of $70.5 million, or $0.55 per share, compared to $82.5 million, or $0.62 per share, in the year-earlier quarter. Excluding non-recurring items, the company's earnings climbed 13% to $0.70 per share from $0.62 per share. Its revenue gained 2% to $1.01 billion, while sales rose 6% in constant currency. However, analysts were expecting earnings of $0.64 per share on revenue of $985 million. Consumer business sales gained 5% in constant currency, while industrial business sales climbed 7% in constant currency. Adjusted operating income dropped to $122 million from $125 million. Alan D. Wilson, Chairman and CEO, said, "Our first quarter results demonstrated progress with our sales growth strategies, and our profit result has us off to a strong start in 2015…Although we grew sales in the first quarter, operating income was unfavorably impacted by several factors including special charges, unfavorable currency rates and higher material costs. We anticipate that these headwinds will continue in 2015, but expect the benefit of our pricing actions and cost reduction efforts to build in the upcoming quarters." McCormick reaffirmed its full-year earnings forecast of $3.44 to $3.51 per share. McCormick shares rose 2.46% to $75.00 in pre-market trading.