Mead Johnson Nutrition Company (MJN) reported that its first-quarter net income to shareholders increased to $172.5 million or $0.85 per share, from $164.2 million or $0.80 per share prior-year. Adjusted net earnings attributable to shareholders totaled $174.0 million or $0.85 per share, compared to $167.4 million or $0.82 per share, a year ago.
The company said its earnings benefited from higher sales and a lower effective tax rate, partially offset by higher demand-generation investments and pension settlement expense.
Sales totaled $1.04 billion, up five percent from $986.6 million a year ago. Sales benefited six percent from price, offset by a one percent decline in volume. The company said the sales growth was driven by seven percent growth in the Asia/Latin America segment and one percent growth in the North America/Europe segment. Excluding the impact of several non-core businesses exited in late 2012, sales growth in the first quarter of 2013 was six percent compared to the same quarter a year ago.
On average, 14 analysts polled by Thomson Reuters expected the company to report profit of $0.85 per share for the quarter. Analysts' estimates typically exclude special items. Analysts expected revenue of $1.02 billion for the quarter.
Mead Johnson confirmed its full-year GAAP profit per share to be in the range of $3.20 to $3.28. Excluding specified items, estimated at $0.02 per share, the full-year 2013 adjusted profit per share is expected to be in the range of $3.22 to $3.30. Analysts expect the company to report fiscal 2013 profit per share of $3.29.
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