McCormick's results improved in 3rd quarter

September 15, 1993|By Ross Hetrick | Ross Hetrick,Staff Writer

Recovering from a disappointing onion crop, McCormick & Co. Inc. reported yesterday that its earnings per share rose 10.3 percent in its third fiscal quarter, excluding a charge for a recent income tax change.

The improved results prompted the Sparks-based spice and flavorings manufacturer to predict that it would be able to increase earn- ings by 10 percent for the entire year.

That would fall short of its goal, however, of boosting earnings by 15 percent annually, according to James A. Hooker, vice president and chief financial officer.

But, more inclined to say the pepper shaker was half-full rather than half-empty, Mr. Hooker said he was pleased with the results. "We are happy with where we are year-to-date," he said, citing "strong sales and profits" in most of the company's division.

He also pointed to a 7 percent increase in earnings for the first nine months -- a significant improvement from the 5 percent increase recorded during the first six months. Mr. Hooker expects the increase to leap into the double digits during the fourth quarter, traditionally McCormick's strongest quarter.

But missing the 15 percent goal has taken its toll on the company's stock, which has dropped from a high of $30.25 as share at the beginning of the year to about $20 by mid-year. The stock closed yesterday at $22 a share, down 50 cents.

As in earlier quarters, the missing ingredient in McCormick's earnings recipe was onions.

The company's Gilroy Food subsidiary, which produces dehydrated onions, depressed the company's earnings earlier in the year because of a drop in its last onion harvest, caused by a planned cutback and poor weather.

Without that, McCormick would have reached its 15 percent goal, Mr. Hooker said.

The company does not expect to repeat the onion problem next year.

McCormick & Co. Inc.

Ticker... ... ... ... ... ... ... ... ..Yesterday's

Symbol... ... ... ... ... ... ... ... ..Cls.Chg...

MCCRK ... ... ... ... ... ... ... ... ..22 1/2 ... ...

Period ended

Aug. 31... ... 3rd qtr... ... Year ago... ... .Chg.

Revenue... ... $394,928... ... $360,300... . +9.6%

Net Income... $24,924*... ... $23,923... ... +4.2%

Primary EPS... . $0.30*... ... .. $0.29... . +3.4%

... ... ... ... ...9 mos... ... .. Year ago... ... ... Chg.

Revenue... ... $1,095,813... ... $1,019,198... +7.5%... ...

Net Income... .. $60,838*... ... $60,195**... ... ... +1.1%

Primary EPS... ... $0.74*... ... .. $0.73**.. ... ... +1.4%

Figures in thousands (except per share data.)

* Earnings were reduced by $2 million, or 2 cents a share, to reflect federal tax increases retroactive to Jan. 1.

Earnings included gain of $1.9 million, or 2 cents a share, for the sale of industrial cleaning supply business.

Baltimore Sun Articles
|
|
|
Please note the green-lined linked article text has been applied commercially without any involvement from our newsroom editors, reporters or any other editorial staff.