McCormick & Co. has reported a fall in profits for the first half, with special charges in the second quarter contributing to the decline.
Net profit for the first half of the year was US$154.8m compared with $167.0m for the same period a year earlier. Operating income reduced to $197.5m compared with $246.3m.
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Sales, however, did increase to $2.03bn compared with $2.02bn.
McCormick booked higher net input costs and increased retirement benefit expense in the second quarter which lowered operating income to $10.38m from $121.7m a year earlier. Net income fell to $84.3m from $84.5m and sales declined 1% to $1.02bn in the quarter.
The company raised its forecast for annual earnings per share by $0.03, due to a reduction in the projected effective tax rate for 2015. It expects to report earnings per share of $3.18 to $3.25. Excluding the estimated impact of $0.29 from special charges, guidance for adjusted earnings per share is now $3.47 to $3.54, up 7-9% on a constant-currency basis from 2014.
In the third quarter of 2015, McCormick expects adjusted earnings per share to decline from the year-ago period as the result of the projected tax rate, which estimated at 29% in the third quarter of 2015 compared to 21% in the third quarter of 2014.
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