McCormick’s fourth-quarter net income slid due to special charges although sales climbed 2% boosted by its recently acquired Wuhan Asia Pacific Condiments (WAPC) business.
Net income for the quarter fell to $129.9 million from $148.5 million a year earlier. Excluding special charges and the loss on a voluntary pension settlement, adjusted earnings rose to $159.1 million from $148.5 million a year earlier. Fourth-quarter sales rose to $405.2 million from $401.7 million a year earlier.
For the fiscal year, adjusted net income rose to $418.2 million from $407.8 million a year ago as sales slipped slightly to $1.585 billion from $1.599 billion. For fiscal year 2014, the company expects to grow sales 3% to 5% and operating income 6% to 8% from $591 million of adjusted operating income in 2013.
Alan D. Wilson, the company’s president and CEO, said the recently acquired Wuhan Asia Pacific Condiments business exceeded expectations with more than $30 million of sales, and McCormick achieved a double-digit increase in base consumer business sales in China.
Product innovation, brand marketing support and pricing actions also contributed to higher sales. Each region of the consumer business, Americas, Europe, Middle East and Africa (EMEA) and Asia/Pacific, grew sales, with particular strength in China.