McCormick has reaffirmed its earnings forecast for fiscal 2008 and upped its sales targets, as increases in selling prices outpace rising costs.
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Delivering its first-quarter results, the US spice manufacturer forecast earnings of between US$1.97 and $2.01 per share for the full year. Earnings per share in the first quarter were $0.39 compared to $0.33 in the first quarter of 2007, McCormick said.
With sales rising 11% during the three months to 29 January, McCormick said it now expects to achieve full-year sales growth of 5-7%. Previously the company had anticipated a 4-6% increase in sales.
Operating income rose 17%, which was an increase of 10% excluding restructuring charges.
“We are off to a good start in fiscal year 2008 with a strong first quarter,” Alan Wilson, McCormick’s president and CEO, said. “Each segment and region of the business grew sales during this period.”
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By GlobalDataWhile McCormick was able to offset rising costs by increasing selling prices, the company still warned margins remain under pressure from more volatile commodity costs.
