McCormick & Company, Incorporated (MKC) announced the company expects 2017 earnings per share to be in the range of $3.69 to $3.73. Excluding an estimated $0.51 impact of transaction and integration expenses, including other debt costs, from RB Foods as well as special charges in 2017, adjusted earnings per share is projected to be in the range of $4.20 to $4.24. This is an increase of 11% to 12% from adjusted earnings per share of $3.78 in 2016. In 2017, McCormick expects to grow sales 9% to 10% compared to 2016. Excluding the impact of unfavorable currency rates, the projected growth is 10% to 11%.
The company said it updated fiscal 2017 outlook to reflect year-to-date performance and growth momentum, the acquisition of RB Foods and a lower impact from unfavorable foreign currency on earnings per share. For fiscal 2017, the company projects another year of strong cash flow, with plans to return a significant portion to shareholders through dividends and to pay down debt.
Third-quarter adjusted earnings per share was $1.12 compared to $1.03 in the year-ago period. The company said the increase was driven primarily by higher operating income. McCormick reported a 9% sales increase in the third quarter from the year-ago period, including a 1% favorable impact from currency. Consumer segment sales grew by 5% with minimal impact from currency. Industrial segment sales grew by 14%, with minimal impact from currency. In constant currency, the company grew sales 8%.
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