McCormick Reports Record 4Q Results

SPARKS, Md.McCormick & Co., Inc. announced record results for the fiscal fourth quarter and year ended Nov. 30, 2009. Acquisitions, cost savings and effective management of working capital contributed significantly to this performance.

Earnings per share for the fourth quarter reached $0.87; an earnings per share of $2.27 was reported in fiscal year 2009. On a comparable basis, excluding restructuring charges and unusual items, earnings per share rose 10 percent. This marked the companys fourth consecutive year of achieving a double-digit increase in earnings per share on a comparable basis.

Cash flow from operations exceeded $400 million for the first time, reaching $416 million, compared to $315 million for fiscal year 2008. The dividend declared in November 2009 marked the companys 24th consecutive year of increase. Solid sales and earnings growth are projected for fiscal year 2010 as a result of new products, a substantial increase in brand marketing and further progress with the Companys Comprehensive Continuous Improvement initiative.

Commenting on the quarter and year, Alan D. Wilson, chairman, president and CEO, said: Our fourth-quarter results were a strong finish to a successful year at McCormick. Profit results for the fiscal year were driven by a 5-percent increase in sales, when measured in local currency, and substantial margin improvement. Acquisitions are an integral part of our growth strategy and in 2009, much of our sales growth and margin improvement were led by Lawrys which we acquired in July 2008.

As McCormicks leadership team looks ahead to 2010, we anticipate driving sales with a significant increase in marketing support and a line-up of exciting new products that features innovative flavors, convenience, value and wellness.