Last $94.51 USD
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Volume 558.4K
As of 3:52 PM 08/20/14 All times are local (Market data is delayed by at least 15 minutes).

mead johnson nutrition co (MJN) Key Developments

Mead Johnson Nutrition Company Announces Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended June 30, 2014; Revised Earnings Guidance for the Full Year of 2014; Provides Gross Margin Guidance for the Third Quarter, Fourth Quarter and Second Half of 2014

Mead Johnson Nutrition Company announced unaudited consolidated earnings results for the second quarter and six months ended June 30, 2014. For the quarter, the company reported net sales of $1,111.1 million against $1,055.3 million a year ago. Earnings before interest and income taxes were $244.9 million against $246.8 million a year ago. Earnings before income taxes were $229.6 million against $234.4 million a year ago. Net earnings attributable to shareholders were $171.4 million or $0.84 per diluted share against $172.0 million or $0.84 per diluted share a year ago. On a non-GAAP basis, which excludes specified items, net earnings attributable to shareholders totaled $179.2 million, or $0.88 per diluted share, up 1% from $177.9 million, or $0.87 per diluted share, for the same quarter a year ago. The company reported strong revenue growth and EPS growth impacted by foreign exchange, higher commodity costs and significantly higher advertising and promotion spending associated with key marketing initiatives. For the six months, net sales of $2,224.4 million against $2,093.2 million a year ago. Earnings before interest and income taxes were $536.1 million against $520.3 million a year ago. Earnings before interest and income taxes were $508.4 million against $493.7 million a year ago. Net earnings attributable to shareholders were $373.8 million or $1.84 per diluted share against $360.0 million or $1.77 per diluted share a year ago. Net cash provided by operating activities was $304.0 million against $399.8 million a year ago. Payments for capital expenditures were $94.8 million against $117.0 million a year ago. On a non-GAAP basis, which excludes specified items, net earnings attributable to shareholders totaled $385.3 million, or $1.90 per diluted share, up 8% from $357.8 million, or $1.76 per diluted share, in the first half of 2013. The company revised earnings guidance for the full year of 2014. For the full year, the company now expects GAAP EPS guidance, excluding any further pension MTM adjustments, to be in the range of $3.59 to $3.66 per diluted share, as compared to the previously reported range of $3.54 to $3.66 per diluted share. Non-GAAP EPS, which excludes specified items, is expected to be in the range of $3.65 to $3.72 per diluted share, as compared to the previously reported range of $3.60 to $3.72 per diluted share. The company revised guidance for revenue growth, and now expects constant dollar revenue growth of not less than 9% for the full year of 2014, up from the approximately 8% on which prior guidance was based. The improved outlook for sales growth comes mainly from North America. Based on the gross margin operating expenses assumptions, EBIT margins should approach 24% for the full year consistent with performance in all years, from 2010 onward. On a full-year basis, the company expects that effective tax rate will be near 24%. The company expects gross margins to come in slightly above 62%. Interest expense is expected to be about $60 million. This is slightly higher than prior guidance, as the company moved a bit earlier with the new bond issuance given favorable trends in the market. Capital spending for the full year is expected to remain unchanged at $180 million. Depreciation and amortization expense should be about $90 million. Gross margins in the second half will therefore be at or slightly below the 61.8% recorded in the second quarter. The company expects that gross margins will bottom out in the third quarter at a level slightly below 61.8% before recovering a bit in the fourth quarter. The dipping gross margins in the third quarter are largely from higher start-up costs for the Singapore Spray Dryer. The facility will begin commercial production in August. The company expects to see interest expense grow to about $18 million in the third quarter as the company will have an early call premium on the 2014 notes. Fourth quarter interest expense will be about $14 million and will reflect a full and clean quarter under new debt structure.

Mead Johnson Nutrition Company to Report Q2, 2014 Results on Jul 22, 2014

Mead Johnson Nutrition Company announced that they will report Q2, 2014 results at 8:00 AM, Central Standard Time on Jul 22, 2014

Mead Johnson Nutrition Company, Q2 2014 Earnings Call, Jul 22, 2014

Mead Johnson Nutrition Company, Q2 2014 Earnings Call, Jul 22, 2014

Mead Johnson Nutrition Company and Mead Johnson & Company, LLC Enter into Five Year Revolving Credit Facility Agreement

On June 27, 2014, Mead Johnson Nutrition Company (company), Mead Johnson & Company, LLC (MJ&C), a wholly owned subsidiary of the company, and various other subsidiaries of the company party thereto from time to time, entered into amendment no. 1 to the five year revolving credit facility agreement dated as of June 17, 2011 among the Company, MJ&C, various subsidiaries of the company parties thereto from time to time, various financial institutions and JPMorgan Chase Bank, N.A., as administrative agent. The first amendment provided for, among other things, an increase in the aggregate amount available for borrowing from $500 million to $750 million (which amount may be increased from time to time up to $1 billion at the request of the company, subject to obtaining additional commitments and other customary conditions), the addition of certain financial institutions as lenders and the extension of the maturity date from June 2016 to June 2019.

Mead Johnson Nutrition Company Provides Earnings Guidance for the Full Year of 2014

Mead Johnson Nutrition Company provided earnings guidance for the full year of 2014. Non-GAAP earnings are expected to be in the range of $3.60 to $3.72 per share. Operating expenses should be between 38% and 38.5%.

 

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