WASHINGTON (dpa-AFX) - McCormick & Company Inc. (MKC) said that its fourth-quarter net income slipped to $129.9 million from last year's $148.5 million, with earnings per share declining to $0.98 from $1.11 in the prior year.
Adjusted earnings per share for the quarter were $1.20, an 8% increase from $1.11 in 2012. The rate of growth was the result of higher adjusted operating income, lower interest expense and fewer shares outstanding. Analysts polled by Thomson Reuters expected the company to report earnings of $1.18 per share for the quarter. Analysts' estimates typically exclude special items.
Adjusted earnings per share exclude the impact of special charges and the loss on a voluntary pension settlement recorded in the fourth quarter.
Net sales for the quarter rose to $1.17 billion from $1.15 billion in the prior year quarter. Eleven analysts had consensus revenue estimate of $1.22 billion for the quarter.
The company's fourth quarter sales rose 2% from the year-ago period. In local currency the increase was 3%.
In the first quarter of 2014, the company expects earnings per share to be comparable to $0.57 in the first quarter of 2013, primarily as a result of a planned increase of at least $7 million in brand marketing support and a higher tax rate, as well as a lower rate of growth in its U.S. businesses in the first part of the fiscal year. Analysts project first-quarter earnings of $0.64 per share.
In fiscal year 2014, the company expects to grow sales 3% to 5% and operating income 6% to 8% from $551 million of adjusted operating income in 2013. Earnings per share is projected to be in a $3.22 to $3.29 range, which includes the unfavorable impact of a significant increase in the 2014 tax rate when compared to the 2013 tax rate. Street currently is looking for fiscal year 2014 earnings of $3.44 per share on annual revenues of $4.41 billion.
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