McCormick's earnings robust in fourth quarter, fiscal year

January 10, 1991|By Liz Atwood | Liz Atwood,Evening Sun Staff

Aided by a strong fourth quarter, McCormick & Co. Inc. today confirmed that its 1990 operating profits hit a record high, as the company previously predicted.

Earnings in the fourth quarter increased 32 percent and sales increased 10 percent compared with the year-ago quarter, the company said. During the quarter ending Nov. 30, 1990, the company reported earnings of $25.5 million, or 62 cents a share, on sales of $399 million compared with earnings of $20.3 million, or 47 cents a share, on sales of $361.5 million in 1989. The per share figure in 1989 included 6 cents from the sale of operations in Brazil.

The Hunt Valley-based spice maker said net income for its fiscal year was $69.4 million, or $1.66 cents a share, on sales of $1.3 billion, compared with $135.5 million, or $3.09 a share, on sales of $1.25 billion in 1989. The 1989 figures include a gain of $83 million, or $1.89 a share, from the sale of discontinued real estate operations.

The company's operating profits actually increased 32 percent over the $52.5 million reported in 1989. Sales, excluding business divestitures, increased 8 percent.

The per share earnings in 1990 included 15 cents for the sale of land in the United Kingdom. The 1989 per share earnings included 6 cents for the sale of operations in Brazil.

"We are delighted to report another year of outstanding performance," said Charles P. McCormick Jr., chairman of the board and chief executive officer. "Our fourth quarter results were especially strong in a very difficult economic environment."

McCormick noted that for the first time the company was able to achieve its financial objective of a 20 percent return on shareholders equity.

The company noted particularly strong performances in its consumer products business and its Canadian operations.

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