McCormick's net income rose 9.1% in 2nd quarter

June 15, 1994|By Ross Hetrick | Ross Hetrick,Sun Staff Writer

McCormick & Co. Inc., the Sparks-based spice and flavorings company, yesterday reported a 9.1 percent increase in second-quarter earnings -- in line with what stock analysts had expected from the world's largest spice company.

"This is a very steady business with a couple of interesting growth aspects," said Clifford F. Ransom, director of special situations research for Raymond James & Associates Inc., a St. Petersburg, Fla., stock brokerage.

The company said revenues of $396.3 million, which were up 9.6 percent, were helped by increases in its sales to food companies and from a lesser extent by acquisitions it made in Mexico and Finland earlier this year.

Net income of $19.1 million, or 24 cents a share, was also helped by a profits turnaround at its Gilroy Foods subsidiary, which produces dehydrated onions.

However, McCormick said operating profits were hurt by lower profit margins in sales to other food companies. The company's stock was unchanged yesterday, closing at $21 a share.

While the increase was below the company's long-term goal of an annual 15 percent increase, James A. Hooker, McCormick's vice president and chief financial officer, said he was confident McCormick will be able to reach this year's goal of double-digit increases.

"We have more profits coming later in the year," he said, noting that the last two quarters are traditionally the best months for the company.

McCormick & Co. Inc. ... ... ... Ticker ... ... ... Yesterday's

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

... ... ... ... ... ... ... ... ... MCCRK .. .. .. ... 21 .. .. unch

Period ended

5/31/94 ... ... ... 2nd qtr. ... ... ... Year ago ... ... ... Chg.

Revenue ... ... ... $396,342 ... ... ... $361,300 ... ... ... +9.6%

Net Income .. .. .. $19,129 ... .. .. .. $17,536 ... .. .. .. +9.1%

Primary EPS ... ... $0.24 ... ... ... .. $0.21 ... ... ... .. +14.3%

... ... ... ... ... 6 mos. ... ... ... Year ago ... ... ... Chg.

Revenue ... ... ... $764,065 ... .. .. $700,885 ... ... ... +9.0%

Net Income .. .. .. $37,439 ... ... .. $8,174* .. .. .. ... +358.0%

Primary EPS ... ... $0.46 .. .. ... .. $0.10* ... .. .. ... +360.0%

* Includes a $26.6 million, or 33 cents a share, charge for accounting change for postretirement benefits.

Figures in thousands (except per share data.)

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