McCormick Reports Improved First Quarter Results

SPARKS, MD, MARCH 17 -- McCormick & Company, Incorporated (NASDAQ:MCCRK), today reported first quarter earnings per share of 22¢ versus 20¢ for the prior year, an increase of 10%. Net income was $16.2 million versus $15.2 million for the first quarter of last year, an increase of 7%. Net sales for the quarter were $415 million, up 2% over the first quarter of 1997.

The Company experienced sales growth in all parts of its business with the exception of the U.S. consumer and packaging businesses. First quarter sales in the U.S. industrial and foodservice business achieved double-digit growth. Commented Robert J. Lawless, President & CEO, "Our immediate objective is growing the U.S. consumer business. While first quarter consumer sales fell short of expectations, we believe that new pricing and promotional programs, together with the relaunch of dry seasoning mixes currently being implemented, will create renewed growth in our consumer products over time. In addition, we were recently successful in gaining significant new distribution, the benefits of which will begin to appear later in the year.

"Our industrial and foodservice business continues to perform well, and we had modest improvement in sales and profit in Europe and Asia/Pacific. Our packaging business experienced weak first quarter sales due to a general market softness, principally for plastic tubes, which we believe will turn more favorable in the second quarter."

First Quarter Report                         McCormick & Company, Incorporated 

Consolidated Income Statement  (Unaudited)

(in thousands except per-share data)


                                                         Three months ended		

                                                      2/28/98          2/28/97	

Net Sales                                          $  415,202       $  407,402

  Cost/ of goods sold	                              282,030          270,685	

Gross profit                                          133,172          136,717	

  Percentage                                             32.1%            33.6%	

  Selling, general and administrative expense         103,143          108,264

Operating income                                       30,029           28,453		

  Interest expense                                      8,389            8,501		

  Other (income) expense - net                         (1,515)          (1,528)	

Income before income taxes	                       23,155	        21,480		

  Provision for income taxes	                        8,336	         7,948	

Net income from consolidated operations                14,819           13,532		

  Income from unconsolidated operations                 1,390            1,683		

NET INCOME	                                   $   16,209       $   15,215		

EARNINGS PER SHARE - BASIC                              $0.22            $0.20

Average shares outstanding - basic 	               73,753	        77,239		

EARNINGS PER SHARE - DILUTED                            $0.22            $0.20

Average shares outstanding - diluted                   74,283           77,400



Condensed Consolidated Balance Sheet (Unaudited)

(in thousands)

	                                              2/28/98          2/28/97

Assets

Receivables	                                   $  171,214       $  196,081

Inventories	                                      268,133	       249,685

Prepaid allowances	                              150,243	       149,500

Property - net                                        380,240          394,820

Other assets                                          267,693          310,040

   Total assets                                    $1,237,523       $1,300,126


Liabilities and shareholders' equity

Short-term borrowings                              $  193,991       $  188,226

Other current liabilities                             310,508          339,549

Long-term debt                                        266,526          286,338

Other liabilities                                      88,669           85,914

Shareholders' equity                                  377,829          400,099

   Total liabilities and shareholders' equity      $1,237,523       $1,300,126