WASHINGTON (dpa-AFX) - McCormick & Company Incorporated (MKC) announced additional reorganization plans in the Europe, Middle East and Africa (EMEA) region to streamline processes. In 2015, the company expects to deliver at least $85 million of cost savings from its Comprehensive Continuous Improvement (CCI) and other actions. The company expects to record approximately $25 million of charges related to the actions. Of the $25 million in special charges, the company expects to recognize approximately $24 million in 2015, which is expected to lower earnings per share on a reported basis in 2015 by $0.13.
In constant currency, the company reaffirmed its guidance for adjusted operating income to grow 6% to 7% from adjusted operating income of $608 million in 2014. On a reported basis, operating income is now expected to decline 2% to 4%.
McCormick reaffirmed its expected 2015 adjusted earnings per share of $3.44 to $3.51, which excludes the impact of all special charges. On a reported basis, earnings per share is expected to be $3.15 to $3.22. This is a decrease of $0.13 per share from the previous projection due to the increased impact of estimated incremental special charges to $0.29 from $0.16.
The company said the proposed changes are subject to consultation processes as appropriate, with its employees or Works Councils in the EMEA region.
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