SPARKS, Md.—McCormick & Company, Inc. reported record results for fiscal year 2010. In the fourth quarter, sales grew 6% and earnings per share reached $0.99. Adjusted earnings per share rose 9%, excluding items affecting comparability. Fiscal year 2010 earnings per share were $2.75. Adjusted earnings per share rose 13%, excluding items affecting comparability. Solid earnings growth is expected in fiscal year 2011 driven by higher sales and further progress with CCI, the company’s global initiative to improve productivity and reduce costs.
Alan D. Wilson, Chairman, President & CEO, commented, “In an economic environment that remains difficult in many of our major markets, we delivered strong financial performance that met or exceeded each of our financial goals for 2010. Our growth initiatives and operational achievements drove increases in both sales and profit. Interest in flavor continues to grow and consumers and customers rely on McCormick for great-tasting, high quality products. That’s the essence of our business - we bring passion to flavor.
"In 2010 we grew sales with new product innovation and expanded distribution, as well as a $21 million increase in brand marketing support. This investment in our brands was fueled by our margin improvement. To achieve this higher margin, we improved productivity and reduced costs throughout our operations with CCI, our Comprehensive Continuous Improvement program. Cost savings reached $54 million in 2010, which was 35% ahead of our initial target for the year. Margins were also positively impacted by our progress toward a more favorable mix of products in our industrial business. We not only improved gross profit margin for the total Company, but reached an 8% operating income margin for our industrial business. I want to recognize the contributions of all McCormick employees around the world for their role in achieving our 2010 results."
