WASHINGTON (dpa-AFX) - McCormick & Company, Incorporated (MKC) adjusted its financial outlook for fiscal year 2016 as it now expects a lower impact from unfavorable foreign currency exchange rates. Excluding this impact, the company reaffirmed its expected growth rate for sales, adjusted operating income and adjusted earnings per share.
For fiscal 2016, the company plans to grow sales 4% to 6% in constant currency. Including the estimated impact of unfavorable currency rates, projected sales growth is 1% to 3%. In January, the company projected sales growth, including the estimated impact of unfavorable currency rates, to be in the range of 0% to 2%.
For fiscal 2016, McCormick & Company now expects earning per share to range from $3.65 to $3.72. Excluding the impact of special charges, adjusted earnings per share is projected to range from $3.68 to $3.75. Analysts polled by Thomson Reuters expect the company to report profit per share of $3.69. In January, the company projected: 2016 earnings per share to be in the range of $3.62 to $3.69; and adjusted earnings per share to be in the range of $3.65 to $3.72.
McCormick said its adjusted earnings per share in the second quarter of 2016 is expected to be slightly below $0.75 of adjusted earnings per share in the second quarter of 2015. The company said, while it anticipates strong sales growth and further improvement in gross profit margin, a portion of the additional brand marketing is planned in the second quarter.
For the first quarter of 2016, McCormick reported a 2% sales increase to $1.03 billion from the year-ago period, and in constant currency, grew sales 7%. Earnings per share was $0.73 in the first quarter compared to $0.55 in the year-ago period. Excluding the $0.01 and $0.15 impact of special charges in the first quarter of 2016 and 2015, respectively, adjusted earnings per share was $0.74 compared to $0.70 in the year-ago period. On average, nine analysts polled by Thomson Reuters expected the company to report profit per share of $0.69 for the quarter. Analysts' estimates typically exclude special items. Analysts expected revenue of $1.03 billion, for the quarter.
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