McCormick Reports Record First Quarter

SPARKS, MD, MARCH 16 -- McCormick & Company, Incorporated (NASDAQ:MCCRK), today reported record sales and earnings per share for the first quarter of 1999. Earnings per share for the quarter were 25¢ versus 22¢ for the prior year, an increase of 14%. Net sales for the quarter were $442 million, up 6% over the first quarter of 1998. Excluding the effects of foreign exchange and divested businesses, sales increased 8%. Sales for the Company's worldwide consumer food business rose 10% while industrial and food service sales increased 4%. Operating income for the global food businesses increased 10%.

In the quarter, gross margins increased to 32.9% from 32.1%. Compared to the first quarter of 1998, inventories were reduced by 8%, and operating cash flows improved by $45 million. This improved profitability and strong cash flows enabled the Company to complete its 10 million share repurchase program three months ahead of schedule.

Commented Robert J. Lawless, President & CEO, "We are pleased with first quarter results. In particular, our global consumer businesses achieved double-digit sales and profit growth. Again this quarter, our consumer programs in the U. S. boosted sales of the Company's branded products.

"Solid sales, gross profit, and operating profit improvement indicate that our strategies are working. The positive momentum generated over the last three quarters makes us confident that we will achieve our 1999 financial objectives."

First Quarter Report                               McCormick & Company, Incorporated
Consolidated Income Statement  (Unaudited)
(in thousands except per-share data)

                                                       Three months ended
                                                     2/28/99       2/28/98

Net Sales                                           $441,543      $415,202
Cost of goods sold                                   296,204       282,030
Gross profit                                         145,339       133,172
Percentage                                              32.9%         32.1%
Selling, general and administrative expense          112,678       103,143
Operating income                                      32,661        30,029
Interest expense                                       8,134         8,389
Other (income) expense, net                           (1,095)       (1,515)
Income before income taxes                            25,622        23,155
Income taxes                                           9,198         8,336
Net income from consolidated operations               16,424        14,819
Income from unconsolidated operations                  1,746         1,390
NET INCOME                                           $18,170       $16,209
EARNINGS PER SHARE - BASIC AND DILUTED	                $0.25         $0.22
Average shares outstanding - basic                    72,326        73,753
Average shares outstanding - diluted                  72,953        74,283



Condensed Consolidated Balance Sheet (Unaudited)
(in thousands)

                                                     2/28/99        2/28/98
Assets
Receivables                                         $176,367       $171,214
Inventories                                          246,392        268,133
Prepaid allowances                                   153,729        150,243
Property, plant and equipment, net                   372,209        380,240
Other assets                                         268,469        267,693
   Total assets                                   $1,217,166     $1,237,523

Liabilities and shareholders' equity
Short-term borrowings                               $190,764       $193,991
Other current liabilities                            311,635        310,508
Long-term debt                                       247,956        266,526
Other liabilities                                     99,225         88,669
Shareholders' equity                                 367,586        377,829
   Total liabilities and shareholders' equity     $1,217,166     $1,237,523