Tags: mccormick | earn | spice

Spice Maker McCormick's Results Beat Street Estimates

Tuesday, 27 March 2012 09:37 AM

Spice maker McCormick & Co. reported first-quarter results above analysts' estimates and kept its profit and sales forecast for the year, as demand rose despite price increases.

Sparks, Maryland-based McCormick also said its results were helped by its joint venture with India's Kohinoor Foods Ltd , known for its special variety of "Basmati" rice, and its acquisition of privately held Polish food maker Kamis.

McCormick, which sells spices, herbs, seasoning blends and sauces to grocers, warehouse clubs and discount and drug stores, posted a first-quarter profit of $74.5 million, or 55 cents a share, compared with $76.8 million, or 57 cents a share, a year ago.

Sales rose 16 percent to $906.7 million in the quarter ended Feb. 29.

Analysts were expecting earnings of 53 cents a share on sales of $869.8 million, according to Thomson Reuters I/B/E/S.

Rising costs of materials like pepper, wheat and soybean oil have forced McCormick to raise prices. Higher prices accounted for 5 percentage points out of the 16 percent sales growth, while volume and product mix rose 4 percent in the quarter.

McCormick kept its 2012 per-share profit forecast of $3.01 to $3.06. It expects sales for the year to rise between 9 percent and 11 percent.

The company's shares rose 1 percent before the opening bell Tuesday. They had closed at $53.02 on Monday on the New York Stock Exchange.

© 2019 Thomson/Reuters. All rights reserved.

1Like our page
Tuesday, 27 March 2012 09:37 AM
Newsmax Media, Inc.

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

© Newsmax Media, Inc.
All Rights Reserved