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McCormick Industrial Business Declines in Q2

June 28, 2013
by candyandsnacktoday

Sparks, MD — McCormick & Co., Inc.’s second quarter net sales rose two percent compared with the same quarter in the year prior, the company reports; however its industrial business saw a one percent decline in sales, a trend the company expects will continue through the third quarter.

Operating income totaled $116 million, down from $121 million in the same quarter of the previous year. McCormick’s industrial business operating income dropped from $32.7 million in the second quarter of 2012 to $28.4 million in Q2 of 2013.

Industrial sales in the Americas declined one percent, despite growth in snack seasoning sales, which was offset by a decline in volume and product mix related to lower demand from quick service restaurants. Industrial sales dropped three percent in Europe, the Middle East and Africa, but grew two percent in Asia/Pacific.

Chairman, President and CEO Alan D. Wilson says: “In the second quarter of 2013, our industrial business grew sales to food manufacturers and food service distributors. While we had lower demand from quick service restaurants in North America and China, we expect this situation to improve in the fourth quarter based on our new product pipeline and latest outlook.”

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