McCormick Posts Upbeat Q2 Earnings, Lifts FY15 Earnings Forecast

reported stronger-than-expected earnings for its fiscal second quarter. The Sparks, Maryland-based company reported a quarterly profit of $84.3 million, or $0.65 per share, versus $84.5 million, or $0.64 per share, in the year-ago period. Excluding items, profit surged to $0.75 per share from $0.64 per share. Its revenue fell 0.9 percent to $1.02 billion. However, analysts were expecting a profit of $0.68 per share on revenue of $1.04 billion. The average estimate among 13 Estimize users was for earnings of $0.69 per share and revenue of $1.04 billion. Sales in its consumer business fell 2.5 percent to $599.8 million, while revenue from its industrial segment climbed 1.4 percent to $424.3 million. Its adjusted operating income rose to $123 million, from $122 million in the year-ago quarter. Alan D. Wilson, Chairman and CEO, said, "Our second quarter results demonstrated the effectiveness of our sales and profit growth strategies and continued the momentum from the first quarter. Both our consumer and industrial segments delivered higher sales in constant currency across each region. We are driving this growth by developing innovative products, building brand equity and strengthening our customer relationships." McCormick now expects FY15 adjusted earnings of $3.47 to $3.54 per share, versus its prior forecast of $3.44 to $3.51 per share. The company affirmed its revenue growth forecast of 4 percent to 6 percent. McCormick shares gained 0.99 percent to close at $80.95 yesterday.