McCormick earnings rise 15% Strong showing for 3rd quarter extends growth

September 15, 1992|By Ross Hetrick | Ross Hetrick,Staff Writer

Earnings for McCormick & Co. Inc. continued to climb during its third fiscal quarter, jumping 15 percent to $23.9 million.

Earnings per share increased by 16 percent, to 29 cents, from 25 cents a share a year ago.

"Management has put some very impressive numbers on the board in the last few years," said David S. Leibowitz, senior vice president for American Securities Corp., a New York stock brokerage. "It appears that the positive trends are extending themselves."

On the strength of the good news and the general surge in the market yesterday, McCormick stock increased by $1 a share, closing at $27.25.

Mr. Leibowitz said he expects McCormick earnings to continue upward as the tastes of the general population becomes more sophisticated and there is a move toward more ethnic cooking.

Sales for the giant Sparks-based spice and food company increased by 5.4 percent to $360.3 million during the third fiscal quarter ended Aug. 31.

For nine months, the company reported income of $60.2 million, an 18.2 percent increase from the same period a year ago.

Per-share earnings jumped by 19.7 percent, to 73 cents a share, from 61 cents a share.

Earnings per share were partly boosted by the company's stock purchase program, which has reduced the number of outstanding shares of stock.

Sales in the nine months rose by only 2.1 percent, hitting $1 billion, compared with $998 million for the same period a year ago.

James A. Hooker, vice president and chief financial officer at McCormick, said retail sales were helped in the quarter by

agreements that put the company's products on the shelves of two or three grocery store chains with about 400 outlets.

Three months ended 8/31/92

.. .. Revenue .. .. .. Net .. .. .. .. .. Share

'92.. 360,300,000.. 23,923,000.. .. .. 0.29

'91 .. 341,838,000 ..20,798,000 .. .. .. 0.25

change .. +5.4 .. .. +15.0 .. .. .. .. ..+16

Nine months ended 8/31/92

.. .. .. Revenue .. .. .. Net .. .. .. .. Share

'92.. .. 1,019,198,000.. 60,195,000 .. 0.73

'91.. .. ..997,966,000.. 50,928,000.. ..0.61

% change .. +2.1 .. .. .. .. +18.2 .. .. +19.7

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