WASHINGTON (dpa-AFX) - Spices and seasonings maker McCormick & Co. Inc.'s (MKC) fourth-quarter net income increased to $148 million from $129.9 million last year. Earnings per share were $1.14, higher than $0.98 reported in the year-ago quarter.
On a comparable basis, adjusted earnings per share were $1.16 in the fourth quarter of 2014, down from $1.20 reported last year, due mainly to lower adjusted operating income, offset in part by higher income from unconsolidated operations and lower shares outstanding. On average, 9 analysts polled by Thomson Reuters expected earnings of $1.14 per share for the quarter. Analysts' estimates typically exclude special items.
Net sales remained flat at $1.17 billion for the recent period. Seven analysts expected revenues of $1.21 billion.
The company grew fourth quarter sales 2% in local currency. Including the impact of foreign currency, sales rose slightly from the year-ago period. Consumer sales grew 3% in local currency, driven by pricing actions and higher volume and product mix. Sales growth in the Americas region and in China led this performance.
In fiscal 2015, McCormick expects to grow sales 4% to 6% in local currency. Earnings per share are projected to be in a $3.41 to $3.48 range, and adjusted earnings per share is expected to range from $3.51 to $3.58, which excludes the expected impact of special charges. Analysts project annual earnings of $3.58 per share.
Further, the company has significant cost reduction activity underway through its Comprehensive Continuous Improvement program, and additional streamlining actions. In fiscal year 2015, cost savings are likely to reach at least $85 million, which is a 23% increase from 2014.
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