SPARKS, Md.--(BUSINESS WIRE)--McCormick & Company, Incorporated (NYSE: MKC), a global leader in flavor, today will highlight the Company’s growth initiatives, including recent expansion in emerging markets, during a presentation at the Barclays Capital Back-to-School Consumer Conference in Boston, MA.
Alan Wilson, Chairman, President & CEO, will open the conference by stating “McCormick brings passion to flavor.” McCormick’s high quality and healthful spices and flavors make a difference in the way people in locations around the world, create and experience food. The Company’s employees are committed to delivering high performance in every aspect of the business which has led to a track record of solid sales and profit growth along with strong shareholder returns.
McCormick will reaffirm its long-term financial objectives and its outlook for 2011, which accounts for higher and more volatile material costs. This 2011 outlook includes 6% to 8% sales growth in local currency, which includes the impact of increased volume, as well as pricing actions to offset higher costs. As a further offset to higher costs, McCormick expects to achieve at least $45 million in cost savings. Consistent with McCormick’s previous forecast, earnings per share in 2011 are projected to be $2.74 to $2.79.
In response to an uncertain operating environment resulting from a difficult global economy and more cautious consumers, McCormick is focusing on three areas. First, the Company is building its brand strength in developed markets and driving category growth through increased marketing and product innovation. Second, as consumers seek more value, McCormick is supplying a range of products – from value-priced to gourmet – and expanding distribution into multiple retail channels, including warehouse clubs and dollar stores.
Lawrence Kurzius, President, McCormick International, will review the third area, which is expansion in high-growth, emerging markets. McCormick has achieved 15% compound annual sales growth in these markets for the past five years and expects this pace of growth to accelerate in 2011 and 2012 with the addition of Kamis in Poland and a majority stake in a newly formed joint venture in India. In 2012, more than 12% of projected sales are expected to come from emerging markets with future opportunities in each of the Company’s three regions: the Americas, Europe, Middle East and Africa, and Asia/Pacific.
Mr. Wilson will conclude, “While we are adapting our near-term activities to the current environment, the fundamentals of our business remain intact and give me confidence in our on-going success:
- At McCormick we bring passion to flavor and are a leader in delivering flavor to markets around the world;
- Across our six growth platforms, we have a clear framework to build our business;
- We are driving the top-line with base business growth, innovative products and our acquisition activity;
- We have a sound balance sheet and strong cash flow;
- And we expect our growth strategy to provide another decade of increased returns for McCormick shareholders.”
Forward-looking Information
Certain information contained in this release, including statements concerning expected performance such as those relating to net sales, earnings, cost savings and brand marketing support, are “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934.
These and other forward-looking statements are based on management’s current views and assumptions and involve risks and uncertainties that could significantly affect expected results. Results may be materially affected by external factors such as damage to our reputation or brand name, business interruptions due to natural disasters or similar unexpected events, actions of competitors, customer relationships and financial condition, the ability to achieve expected cost savings and margin improvements, the successful acquisition and integration of new businesses, fluctuations in the cost and availability of raw and packaging materials, changes in regulatory requirements, and global economic conditions generally which would include the availability of financing, interest, inflation rates and investment return on retirement plan assets, as well as foreign currency fluctuations and other risks described in the Company’s filings with the Securities and Exchange Commission. Actual results could differ materially from those projected in the forward-looking statements.
The Company undertakes no obligation to update or revise publicly, any forward-looking statements, whether as a result of new information, future events or otherwise.
About McCormick
McCormick & Company, Incorporated is a global leader in flavor. With more than $3 billion in annual sales, the Company manufactures markets and distributes spices, seasoning mixes, condiments and other flavorful products to the entire food industry – retail outlets, food manufacturers and foodservice businesses.
Every day, no matter where or what you eat, you can enjoy food flavored by McCormick. McCormick brings passion to flavor™!
To learn more please visit us at www.mccormickcorporation.com