McCormick & Company Issues FY20 Outlook - Quick Facts

(RTTNews) - McCormick & Company, Incorporated (MKC) said, for 2020, the company projects adjusted earnings per share to be in the range of $5.20 to $5.30, an expected decline of 3% to a decline of 1%. Analysts polled by Thomson Reuters expect the company to report profit per share of $5.55. Analysts' estimates typically exclude special items. The company expects strong underlying business performance to drive operating income and earnings per share growth, offset by a significant incremental investment associated with business transformation and a higher projected effective tax rate.

In 2020, the company expects to grow sales by 2% to 4%. The increase consists entirely of organic growth as the company has no incremental sales impact from acquisitions in 2020.

For fiscal 2020, the company projects strong cash flow, with plans to return a significant portion to shareholders through dividends and to pay down debt.

Fourth-quarter adjusted earnings per share decreased to $1.61 from $1.67, driven by a higher adjusted income tax rate versus the fourth quarter of 2018. Adjusted operating income grew 3% to $303 million, or a 4% increase in constant currency.

Fourth-quarter sales rose 1% to $1.49 billion. In constant currency, sales were up 2%, for the quarter.