McCormick & Company Inc. (Sparks, Maryland) reported its financial results for fiscal year 2010, noting it as a record year with sales growing 6% and earnings per share reaching $0.99. Additionally, the trend is expected to continue into 2011, driven by the sales increase and the company’s progress with its global initiative to improve productivity and reduces costs, its Comprehensive Continuous Improvement, or CCI, program.
Company chairman, president and CEO Alan D. Wilson commented that the company met or exceeded each of its financial goals for 2010, fueling the increases in both sales and profit. “In 2010, we grew sales with new product innovation and expanded distribution, as well as a $21 million increase in brand marketing support. This investment in our brands was fueled by our margin improvement,” Wilson explained. “To achieve this higher margin, we improved productivity and reduced costs throughout our operations with CCI. Cost savings reached $54 million in 2010, which was 35% ahead of our initial target for the year. Margins were also positively impacted by our progress toward a more favorable mix of products in our industrial business. We not only improved gross profit margin for the total company, but reached an 8% operating income margin for our industrial business. I want to recognize the contributions of all McCormick employees around the world for their role in achieving our 2010 results.”