McCormick & Company Inc. (MKC, Financial) filed Quarterly Report for the period ended 2010-05-31.
Mccormick & Company Inc. has a market cap of $5.03 billion; its shares were traded at around $37.93 with a P/E ratio of 15.3 and P/S ratio of 1.6. The dividend yield of Mccormick & Company Inc. stocks is 2.7%. Mccormick & Company Inc. had an annual average earning growth of 8% over the past 10 years. GuruFocus rated Mccormick & Company Inc. the business predictability rank of 4.5-star.MKC is in the portfolios of Mark Hillman of Hillman Capital Management, John Rogers of ARIEL CAPITAL MANAGEMENT LLC, Westport Asset Management, Brian Rogers of T Rowe Price Equity Income Fund, Tom Russo of Gardner Russo & Gardner, Paul Tudor Jones of The Tudor Group, Steven Cohen of SAC Capital Advisors, Pioneer Investments, Pioneer Investments, Manning & Napier Advisors, Inc, Jeremy Grantham of GMO LLC.
Increasing Sales and Profits With the investments in our business, our long-term goals are to grow sales 4 to 6% and increase earnings per share 9 to 11% on an annual basis. In 2010, earnings per share are expected to grow 6 to 8% as we make a significant investment in increased brand marketing. Also in 2010, net sales are expected to grow 2 to 4% in local currency. In addition to increased sales and profit, our business generates strong cash flow and we exceeded $400 million in cash flow from operations for the first time in 2009. We are looking for another year of strong cash generation from our business with higher profit and further reduction in our working capital. We are building shareholder return with consistent dividend payments and a resumption of our share repurchase program. We have paid dividends every year since 1925 and increased the dividend in each of the past 24 years.
For the six months ended May 31, 2010, the sales increase of 5.9% versus the same period last year includes 4.2% from the favorable impact of foreign currency. The 1.7% increase excluding the foreign currency impact was due to higher volumes and favorable product mix of 2.0%, partially offset by lower pricing of 0.3%.
In the Americas, sales increased 4.1% in the second quarter of 2010, compared to the second quarter of 2009, including a 2.0% increase due to favorable foreign exchange rates. Excluding the foreign exchange impact, we grew sales 2.1% through higher volume and product mix.
In the Asia/Pacific region, sales increased 22.2% in the second quarter of 2010, compared to the second quarter of 2009, with a 15.1% increase coming from favorable foreign exchange rates. Excluding the foreign currency impact, we grew sales 7.1% with 11.2% coming from higher volume and product mix and pricing reducing sales by 4.1%. These increases were driven by a double-digit growth in China where we continue to gain distribution. In addition, we have launched several new products including Thai Chili Sauce, which leverages our strength in the bottled sauce category at retail and is supported by a full media campaign. Also, we have added new flavors of ice cream toppings to expand our leading position in this category.
For the six months ended May 31, 2010, the total consumer business sales increase of 5.9% includes 3.6% from favorable foreign exchange rates. The remaining 2.3% was mainly driven by favorable volume and product mix.
Read the The complete Report
Mccormick & Company Inc. has a market cap of $5.03 billion; its shares were traded at around $37.93 with a P/E ratio of 15.3 and P/S ratio of 1.6. The dividend yield of Mccormick & Company Inc. stocks is 2.7%. Mccormick & Company Inc. had an annual average earning growth of 8% over the past 10 years. GuruFocus rated Mccormick & Company Inc. the business predictability rank of 4.5-star.MKC is in the portfolios of Mark Hillman of Hillman Capital Management, John Rogers of ARIEL CAPITAL MANAGEMENT LLC, Westport Asset Management, Brian Rogers of T Rowe Price Equity Income Fund, Tom Russo of Gardner Russo & Gardner, Paul Tudor Jones of The Tudor Group, Steven Cohen of SAC Capital Advisors, Pioneer Investments, Pioneer Investments, Manning & Napier Advisors, Inc, Jeremy Grantham of GMO LLC.
Highlight of Business Operations:
business. In 2009, excluding restructuring charges, the consumer business contributed 60% of sales and 82% of operating income and the industrial business contributed 40% of sales and 18% of operating income. Across both segments, we have the customer base and product breadth to participate in all types of eating occasions, whether it is cooking at home, dining out, purchasing a quick service meal or enjoying a snack. We offer consumers a range of products from premium to value-priced.Increasing Sales and Profits With the investments in our business, our long-term goals are to grow sales 4 to 6% and increase earnings per share 9 to 11% on an annual basis. In 2010, earnings per share are expected to grow 6 to 8% as we make a significant investment in increased brand marketing. Also in 2010, net sales are expected to grow 2 to 4% in local currency. In addition to increased sales and profit, our business generates strong cash flow and we exceeded $400 million in cash flow from operations for the first time in 2009. We are looking for another year of strong cash generation from our business with higher profit and further reduction in our working capital. We are building shareholder return with consistent dividend payments and a resumption of our share repurchase program. We have paid dividends every year since 1925 and increased the dividend in each of the past 24 years.
For the six months ended May 31, 2010, the sales increase of 5.9% versus the same period last year includes 4.2% from the favorable impact of foreign currency. The 1.7% increase excluding the foreign currency impact was due to higher volumes and favorable product mix of 2.0%, partially offset by lower pricing of 0.3%.
In the Americas, sales increased 4.1% in the second quarter of 2010, compared to the second quarter of 2009, including a 2.0% increase due to favorable foreign exchange rates. Excluding the foreign exchange impact, we grew sales 2.1% through higher volume and product mix.
In the Asia/Pacific region, sales increased 22.2% in the second quarter of 2010, compared to the second quarter of 2009, with a 15.1% increase coming from favorable foreign exchange rates. Excluding the foreign currency impact, we grew sales 7.1% with 11.2% coming from higher volume and product mix and pricing reducing sales by 4.1%. These increases were driven by a double-digit growth in China where we continue to gain distribution. In addition, we have launched several new products including Thai Chili Sauce, which leverages our strength in the bottled sauce category at retail and is supported by a full media campaign. Also, we have added new flavors of ice cream toppings to expand our leading position in this category.
For the six months ended May 31, 2010, the total consumer business sales increase of 5.9% includes 3.6% from favorable foreign exchange rates. The remaining 2.3% was mainly driven by favorable volume and product mix.
Read the The complete Report
