mccormick & co-non vtg shrs (MKC) Key Developments
Kenneth A. Kelly to Retire as Senior Vice President & Controller of Mccormick & Company, Incorporated At the End of December 2013
May 16 13
Kenneth A. Kelly, Jr., Senior Vice President & Controller, has determined that he will retire from McCormick & Company, Incorporated at the end of December 2013. From now until his retirement, Mr. Kelly will continue to serve in his current role.
McCormick & Company, Incorporated Declares Quarterly Dividend, Payable on April 29, 2013
Apr 3 13
The board of directors of McCormick & Company, Incorporated declared a quarterly dividend of $0.34 per share on its common stock payable on April 29, 2013 to shareholders of record on April 15, 2013.
The Chanler Group Files Three Lawsuits against National Food Suppliers over Prop 65 for Environmentalists
Apr 2 13
The Chanler Group has filed Proposition 65 civil complaints on behalf of Whitney R. Leeman, Ph.D., against three prominent national food suppliers: McCormick & Company Inc.; Farmer Bros. Co.; as well as Adams Extract & Spice, LLC. All complaints are filed in the Superior Court of the State of California, San Francisco County for the firm's client. The complaints charge the three defendants with distributing food extracts, flavors and colorings containing unacceptable levels of the carcinogenic chemical 4-MEI, or 4-Methylimidazole, without a proper consumer warning label. The Chanler Group had previously issued 60-day notices of violation, urging the manufacturers to comply with California's Proposition 65 requirements. The state law calls for manufacturers and retailers to label products containing known carcinogenic toxins with a warning to inform consumers prior to exposure. The 4-MEI compound is frequently added to food products for its caramel color. It was first added to Prop. 65's list of chemicals known to the state of California to cause cancer in January of 2011. Beginning in 2012, The Chanler Group independently purchased a variety of products from McCormick & Company Inc., Farmer Bros. Co., and Adams Extract & Spice, LLC. The products were then tested in a certified laboratory, where significant levels of 4-MEI were detected. The 4-MEI compound is also commonly found in pharmaceuticals, photographic chemicals, dyes, pigments, cleaning products, and rubber products. The three civil complaints call for injunctive action on the part of the court, which would compel McCormick & Company Inc., Farmer Bros. Co., and Adams Extract & Spice, LLC to either change their manufacturing processes to reduce or eliminate the presence of 4-MEI, or to clearly label all products containing the chemical. Chanler Group is also seeking civil penalties, 75% of which are payable to California's Office of Environmental Health Hazard Assessment, against these defendants in accordance with California's Health and Safety Code.
McCormick & Company, Incorporated Announces Unaudited Consolidated Earnings Results for the First Quarter Ended February 28, 2013; Reaffirms Earnings Guidance for the Year and Second Quarter of 2013 and Tax Rate Guidance for Second Nine Months of 2013
Apr 2 13
McCormick & Company, Incorporated announced unaudited consolidated earnings results for the first quarter ended February 28, 2013. For the quarter, the company reported net sales of $934.4 million against $906.7 million a year ago. Operating income was $112.0 million against $112.5 million a year ago. Income from consolidated operations before income taxes was $98.7 million against $99.9 million a year ago. Net income from consolidated operations was $70.6 million against $69.9 million a year ago. Net income was $70.6 million or $0.57 per diluted share against $74.5 million or $0.55 per diluted share a year ago. Net cash provided by operating activities was $31.6 million against $22.5 million a year ago. This improvement was mainly the result of a slight decrease in inventory in this period versus the first quarter of 2012, when inventory was a use of cash. Due to the seasonality of McCormick's business, cash flow from operations typically increases significantly in the second half of the fiscal year. Capital expenditures were $12.4 million against $15.1 million a year ago.
The company reaffirmed its expectation to grow sales 3% to 5% in local currency, largely from higher volume and product mix and expects a minimal impact of foreign currency exchange rates based on current rates. The company also reaffirmed guidance for a 6% to 8% increase in operating income, including projected CCI cost savings of at least $45 million. The company's outlook for 2013 earnings per share continued to be in a range of $3.15 to $3.23. Capital expenditures in 2013 are still expected to be in a range of $120 million to $130 million, and expect increased profit and further improvement in working capital to deliver another year of strong cash flow. In 2013, the company expects an on underlying double-digit increase in earnings per share.
As a result of the unfavorable impact of these factors, earnings per share in the second quarter of 2013 are expected to be comparable to $0.60 earnings per share that the company reported in the second quarter of 2012.
For the remaining three quarters of 2013, the company continued to project a tax rate of approximately 29.5%.
McCormick & Company, Incorporated Announces Management Promotions
Mar 5 13
McCormick & Company announced a new global industrial organization and the promotion of Chuck Langmead to President, Global Industrial, McCormick & Company. This new position will help McCormick drive sales growth by aligning its customer intimacy efforts and driving its strategy consistently across McCormick's industrial businesses worldwide. Chuck Langmead, most recently President, Industrial Foods Americas, will have responsibility for McCormick's industrial businesses globally and will chair the company's Global Industrial Strategy Council. Mr. Langmead has been with McCormick for more than 37 years and has held numerous leadership positions including President, U.S. Industrial Group, and Vice President & General Manager, Food Service and Restaurant Divisions. Mr. Langmead is an Emeritus member of McCormick's Multiple Management Board. Randy Carper has been promoted into the role of President, U.S. Industrial Group reporting to Chuck Langmead. Mr. Carper joined McCormick in 1983 as Account Manager for McCormick's U.S. Industrial business. He has held leadership positions with increasing responsibility in the global industrial businesses over the last 29 years. He was Vice President, Industrial for Europe, Middle East and Africa. Prior to this position, Mr. Carper led the U.S. Consumer Food Manufacturers segment of the industrial business. His most recent role was Vice President Global Industrial Customers, where he worked closely with it strategic global industrial customers. Mr. Carper is also an Emeritus member of the Multiple Management Board.