McCormick & Co. 3Q profit climbs on acquisition

SPARKS, Md. — Food and seasonings maker McCormick & Co. said Thursday that its third-quarter profit rose 10 percent, helped by the acquisition of Lawry's and cost cuts.The company also increased the low end of its full-year profit forecast and issued an upbeat holiday outlook, citing its strong performance over the past nine months.For the period ended Aug. 31, McCormick said its earnings climbed to $75.1 million, or 57 cents per share, compared with $68.6 million, or 52 cents per share, last year. The year-ago results included a charge of 2 cents per share related to McCormick's 2008 acquisition of Lawry's.Analysts surveyed by Thomson Reuters, whose estimates generally exclude one-time items, predicted a profit of 54 cents per share.Sales edged up 1 percent to $791.7 million from $781.6 million last year, lifted by improved results from its consumer and industrial segments. Wall Street had expected sales of $801.4 million.McCormick said its consumer business, which sells food products through retail outlets, benefited from the Lawry's acquisition, as well as pricing moves made earlier in the year to offset higher costs and a relaunch of dry seasoning mixes in the U.S.Chairman, President and CEO Alan Wilson said in a statement that the company's marketing efforts have been paying off."With more consumers preparing meals at home, we are seeing a strong return on our marketing dollars and have plans for further increases to drive sales of our leading brands," he said.McCormick said it now expects a 2009 profit of $2.26 to $2.28 per share. In January, the company said it expected earnings of of $2.24 to $2.28 per share this year. Sales are expected to grow, 2 percent to 3 percent.In premarket trading, McCormick shares gained 3 cents, to $34.78. Copyright © 2009 The Associated Press. All rights reserved.

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