McCormick & Co. (Sparks, MD) has reported net sales of $764.1 million for the second quarter of 2008, up from $687.2 million in 2007. Sales for the first half of the year reached $1,488.1 million, boosted by a 12% rise in consumer business sales and 10% gain in industrial business sales. European industrial sales made strong gains during the period, largely due to the increase from higher prices. The company also noted strong demand from restaurant customers in the Asia/Pacific region that contributed to a 27% increase in industrial sales in the second quarter.
Of the results, McCormick president and CEO Alan Wilson, said:
Our industrial business is performing well in the face of higher commodity costs and restaurant industry weakness. We continue to make progress in reducing costs with our restructuring program and are on track to deliver $10 million in cost savings in 2008. Our team in Canada successfully implemented SAP in early June and is on track with the integration of the Billy Bee honey business that we acquired earlier this year.
Given the double-digit increase in year-to-date sales, we have again increased our expectations for 2008. At the end of the first quarter we projected sales growth of 5-7% for the fiscal year. With the continued benefit of favorable pricing, volume and product mix, and foreign exchange rates, we now expect to grow sales at a high single-digit rate. Excluding the impact of restructuring charges and credits, we also expect to increase gross profit and operating income at a high single-digit rate.