McCormick Reports Improved Sales And Profits

SPARKS, MD, JUNE 16 -- McCormick & Company, Incorporated (NASDAQ:MCCRK), today reported higher sales and profits for the second quarter and first six months. Earnings per share for the quarter were 22¢ versus 20¢ for the second quarter of the prior year, an increase of 10%. Net income was $16.1 million versus $14.8 million for the second quarter of last year, an increase of 9%. Net sales for the quarter were $435 million, an increase of 5% over the second quarter of 1997. Earnings per share for the first six months were 44¢, up 13% over the same period of 1997. Net sales for the six months were $851 million versus $821 million last year, an increase of 4%.

Commented Robert J. Lawless, President & CEO, "We are pleased with double-digit sales growth in the second quarter in our U.S. consumer business. The growth initiatives for our consumer business are properly focused and beginning to result in improved revenue for this important segment of our business. New distribution announced in March did not materially contribute to this performance but will favorably impact future results. We continue to experience market softness in our packaging business, but we expect improvement over the last half of the year.

"In summary, our balance sheet is strong, and we believe that sales and profit growth will continue for the remainder of the year."

Second Quarter Report                                 McCormick & Company, Incorporated 


Consolidated Income Statement  (Unaudited)


(in thousands except per-share data)



                                                Three months ended         Six months ended


	                                          5/31/98    5/31/97        5/31/98    5/31/97




NET SALES                                       $435,453   $413,720       $850,655   $821,122 


  Cost of goods sold                             294,165    279,257        576,195    549,942 


Gross profit                                     141,288    134,463        274,460    271,180 


  Percentage                                        32.4%      32.5%          32.3%      33.0% 


  Selling, general and administrative expense    110,849    105,817        213,992    214,081


Operating income                                  30,439     28,646         60,468     57,099 


   Interest expense                                9,308      9,183         17,697     17,684 


   Other (income) expense - net                   (1,226)    (1,782)        (2,741)    (3,310) 


Income before income taxes                        22,357     21,245         45,512     42,725 


   Provision for income taxes                      8,048      7,860         16,384     15,808 


Net income from consolidated operations           14,309     13,385         29,128     26,917 


   Income from unconsolidated operations           1,782      1,426          3,172      3,109 


NET INCOME                                      $ 16,091   $ 14,811       $ 32,300   $ 30,026 


EARNINGS PER SHARE - BASIC                         $0.22      $0.20          $0.44      $0.39


Average shares outstanding - basic                73,457     75,761         73,615     76,536


EARNINGS PER SHARE - DILUTED                       $0.22      $0.20          $0.44      $0.39


Average shares outstanding - diluted              74,159     75,949         74,231     76,711







Condensed Consolidated Balance Sheet (Unaudited)



                                                        5/31/98            5/31/97




Assets

Receivables                                   $  173,906         $  180,929 


Inventories                                              275,050            253,443  


Prepaid allowances                                       158,083            146,033    


Property - net                                           380,023            388,356 


Other assets                                             265,003            300,514    


   Total assets                                       $1,252,065         $1,269,275    




Liabilities and shareholders' equity


Short-term borrowings                                 $  231,650         $  188,024   


Other current liabilities                                299,965            335,440     


Long-term debt                                           258,971            277,818   


Other liabilities                                         88,942             85,684   


Shareholders' equity                                     372,537            382,309    


   Total liabilities and shareholders' equity         $1,252,065         $1,269,275