US spice maker McCormick & Co. today (28 January) posted a drop in full-year profits but said it was “well-positioned” for growth in 2009.
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For the year ended 30 November, net income was down from US$230.1m in 2007 to $255.8m.
The company’s operating income increased to $376.5m from $354.2m in the comparable period last year.
Pricing actions, acquisitions of leading brands, products launches, increased marketing support and favourable foreign exchange rates led to a 9% increase in net sales in 2008 to $3.17bn. This exceeded the company’s initial projection of 4 to 6% sales growth.
McCormick said it managed to offset higher costs with a saving of $11m from the company’s restructuring programme.
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By GlobalDataThe company reported net income for its fourth quarter of $82.5m compared to $87.6m in the year-ago quarter. Net sales rose to $906.9m from $860.1m in the same quarter last year.
Looking ahead, the company said it expects higher sales, a favourable business mix and cost savings to increase fiscal 2009 earnings per share to a range of $2.24-2.28. In local currency, sales are projected to grow 9-11%.
Alan Wilson, president and CEO, said: “Our 2008 financial results demonstrate the resiliency of our business in a tough environment and the ability of our employees to adapt.”
