McCormick Q3 Profit Misses Expectations

reported weaker-than-expected earnings for its fiscal third quarter on Thursday. The Sparks, Maryland-based company reported quarterly net income of $97.6 million, or $0.76 per share, compared to $122.9 million, or $0.94 per share, in the year-earlier quarter. Excluding non-recurring items, the company's adjusted earnings declined to $0.85 per share from $0.95 per share. Its revenue gained 2 percent year-over-year to $1.06 billion, while sales in constant currency surged 7 percent. Analysts were expecting earnings of $0.87 per share on revenue of $1.06 billion. The average estimate among 14 Estimize users was for earnings of $0.89 per share and revenue of $1.06 billion. Consumer business sales gained 1 percent in the latest quarter, while Industrial business sales climbed 2 percent year-over-year. Its operating income slipped to $139 million from $157 million. Alan D. Wilson, Chairman and CEO, said, "McCormick's third quarter and year-to-date 2015 financial results reflect the effectiveness of our growth strategies and engagement of our employees. Through the third quarter we have grown sales 6% in constant currency. Both our consumer and industrial businesses are delivering mid-single digit constant currency sales increases, driven by innovation, effective brand marketing support, expanded distribution and customer intimacy. In addition to this strong growth in our base business, we have completed three acquisitions that are excellent additions to our global portfolio of flavors." For the full year, McCormick projects adjusted earnings at the lower end of the range of $3.47 to $3.54 per share. The company expects sales in constant currency to rise at the upper end of its 4 percent to 6 percent guidance range. McCormick shares gained 1.21 percent to close at $82.17 yesterday.