WASHINGTON (dpa-AFX) - Spices and seasonings maker McCormick & Co. Inc. (MKC) posted higher second-quarter net income of $80.4 million, versus $73.6 million in the prior-year quarter. Quarterly earnings per share rose to $0.60 from $0.55 in the year-ago quarter, chiefly driven by higher operating income, as well as a favorable tax rate. These increases were offset in part by the lower income from unconsolidated operations and higher interest expense.
On average, 12 analysts polled by Thomson Reuters expected earnings per share of $0.60 for the quarter. Analysts' estimates typically exclude one-time items.
McCormick's quarterly net sales went up 11% to $984.0 million, with contributions from acquisitions, pricing actions and increased volume and product mix. This compares with $883.7 million net sales a year earlier. Nine analysts estimated revenues of $969.79 million for the quarter. In local currency, net sales growth was 13% when compared with last year.
For fiscal 2012, the company still sees earnings per share in a range of $3.01 - $3.06, reflecting the higher operating income offset in part by lower income from unconsolidated operations. Thirteen analysts project earnings per share of $3.05 for the full year.
Also, the company confirmed its projected full-year sales growth of 9% - 11% in local currency, including an estimated 4% contribution from acquisitions completed in 2011. Unfavorable foreign currency exchange rates are expected to have a 2% unfavorable impact, McCormick added.
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