Specialty food company McCormick & Co., Inc. (MKC) is slated to release its third-quarter results before the market's open Thursday. The company recently had noted that it is well-positioned for further increases in sales and profit. On average, nine analysts surveyed by Thomson Reuters expect the company to post earnings of $0.54 per share for the quarter, with estimates ranging between $0.52 and $0.56 per share. Analysts' estimates typically exclude special items. Revenues for the quarter are estimated to be $801.36 million, representing a 2.5% growth from last year.
In the same period a year ago, the Sparks, Maryland-based maker of spices, seasonings, flavorings and specialty foods had recorded net income of $68.6 million or $0.52 per share, and adjusted net income of $65.5 million or $0.50 per share, on net sales of $781.6 million. The company, like others in the industry, is expected to benefit from the eat-at-home trend imposed by the tough economy, together with the reduction in ingredient costs.
While announcing its second-quarter results back in June, Alan Wilson, Chairman, President and CEO, had stated, "McCormick continues to achieve solid financial results in a tough economy. Sales growth for our U.S. consumer business was particularly strong this quarter as a result of effective marketing support, the addition of Lawry's and continued consumer interest in our leading brands. This more favorable business mix, together with CCI, our restructuring program and other cost reductions, led to profit and margin increases that were right in line with our 2009 objectives." Wilson also said, "We are effectively navigating through a difficult global economic environment. We were able to manage an unexpected bankruptcy cost this quarter, along with further volatility in raw material costs and foreign currency exchange rates, and still deliver our targeted profit growth. McCormick employees are effectively managing through these challenges and have remained focused on sales growth, cost containment and meeting objectives. Our business fundamentals are sound and we are well-positioned for further increases in sales and profit." Based on strong profit performance in the first half and a positive outlook for the second half, McCormick has also reaffirmed its 2009 earnings per share projection of $2.24 to $2.28, representing an increase of 7% to 9% from last year on a comparable basis, excluding items. Sales in 2009 are expected to grow 2% to 3%, and the company expects to achieve a gross profit margin increase of at least 0.5 percentage points for the fiscal year. Analysts currently expect the company to report full year 2009 earnings of $2.31 per share, on sales of $3.24 billion that represents a 1.9% rise from last year.
Founded in 1889, McCormick manufactures, markets, and distributes flavor products and other specialty food products to the food industry. It operates in two segments: Consumer, which offers spices, herbs, extracts, seasoning blends, sauces, marinades, and specialty foods to the consumer food market, and Industrial segment, which provides seasoning blends, natural spices and herbs, wet flavors, coating systems, and compound flavors to food manufacturers and the food service industry through distributors. The company sells its products directly to customers and through brokers and wholesalers.
In its preceding second quarter, McCormick posted a 5% decline in profit to $50.7 million or $0.38 per share, hurt by restructuring charges and a 1% drop in quarterly sales, despite a 90 basis points improvement in gross margins. Excluding the restructuring charges, adjusted net income for the quarter advanced to $55.4 million or $0.42 per share. Net sales edged down to $757.3 million as unfavorable foreign currency exchange rates reduced sales 8%, while total sales rose 7% in local currency.
McCormick's consumer business sales in the second quarter advanced 4% over last year to $435.1 million and increased 19% in local currency, primarily driven by 13% of additional sales from the Lawry's acquisition. For the industrial business, sales decreased 7%, but grew 3% in local currency, from the year-ago quarter to $322.2 million.
Among others in the industry, New York-based International Flavors & Fragrances Inc.(IFF), a manufacturer of fragrance and flavor products, on August 5 reported that its second-quarter net income dropped to $48.08 million or $0.60 per share from $67.03 million or $0.83 per share in the previous year. Excluding certain items, earnings were $0.65 a share, compared to $0.81 a share in the year-ago period. Net sales for the period decreased 11% to $568.26 million, and the drop was 4% on a constant currency basis.
On Tuesday, McCormick said its Board of Directors declared a quarterly dividend of $0.24 per share on its common stocks payable October 16, 2009, to shareholders of record on October 2, 2009. The dividend is the 85th year of consecutive dividend payments by the company.
MKC closed Wednesday's regular trading session at $34.75, up $0.58 or 1.70%, on a volume of 995,916 shares. The company's shares have been trading in a range of $28.08 - $39.64 in the past 52 weeks, with a 3-month average volume of 728,329 shares.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.