Spice maker McCormick & Co. said Thursday that its second-quarter earnings dropped to $50.7 million, or 38 cents per share, largely because of restructuring charges involving a plant consolidation overseas.
For the comparable quarter a year ago, the Sparks-based company reported a profit of $53.3 million, or 41 cents per share.
Without the special charges, McCormick earned 42 cents per share for the quarter that ended May 31, beating company and analysts' expectations, said Alan D. Wilson, chairman, president and chief executive.
"We feel it was a very solid quarter, especially given the environment," Wilson said. "We think we are positioned to have another record year."
The company reaffirmed that it was on target to earn a record $2.24 to $2.28 per share this year, with sales expected to grow 2 percent to 3 percent.
Sales overall in the second quarter fell about 1 percent, to $757.3 million, compared with $764.1 million a year earlier. Wilson said the stronger dollar this year contributed to that drop.
McCormick's sales were up in North America, helped in part by the company's acquisition last year of the spice company Lawry's. But sales in Europe, Africa and the Middle East fell.
Wilson said sales to restaurants dropped because fewer people are eating out, but that was more than made up for by consumers who are cooking at home.
The company is using cost controls to save $30 million this year. Much of that will be put into marketing, Wilson said.
McCormick's shares fell 2 cents per share Thursday to close at $32.31.
