McCormick Reports Strong Sales and Profits for Second Quarter

SPARKS, MD, JUNE 16 - - McCormick & Company, Incorporated (NYSE:MKC), today reported strong sales and earnings per share for the second quarter of 1999 on a comparable basis with 1998. Earnings per share before the effect of previously announced special charges were 28¢ for the quarter versus 22¢ for the prior year, an increase of 27%. For the first half, the Company reported comparable earnings per share of 53¢, an increase of 20% over earnings per share of 44¢ for the prior year. Including the special charges, earnings per share were 8¢ for the second quarter and 33¢ for the first half.

Net sales for the quarter were $468 million, up 8% over the second quarter of 1998. Second quarter sales rose 8% for both the Company's worldwide consumer food business and the industrial and food service businesses. Before special charges, operating income for the global food businesses increased more than 15%. Sales for the Company's packaging business rose 4%, and operating income increased at a similar rate. For the first half, net sales were $910 million, an increase of 7% over 1998.

In the quarter, gross margins increased to 33.7% from 32.4% in 1998. Compared to the second quarter of 1998, quarter end inventories were 5% lower, and operating cash flow improved by $22 million.

Commented Robert J. Lawless, Chairman, President & CEO, "We are extremely pleased with progress toward achieving our 1999 targets. Sales growth initiatives and improvements in all areas of our operations contributed to another successful quarter. Again this quarter, our consumer programs in the U.S. boosted sales of the Company's branded products. Supply chain management, programs to improve manufacturing efficiencies, and working capital management are underway in our consumer, industrial and packaging operations worldwide. These efforts continue to deliver good results as evidenced by gross margin improvement, inventory reduction, and operating cash flow.

"Our excellent results and positive momentum during the first six months give us confidence that 1999 will be a very successful year for McCormick."

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


                                                Three months ended	       Six months ended
                                                5/31/99    5/31/98       5/31/99     5/31/98

NET SALES                                      $468,178   $435,453      $909,721    $850,655
  Cost of goods sold                            310,443    294,165       606,647     576,195
Gross profit                                    157,735    141,288       303,074     274,460
  Percentage                                       33.7%      32.4%         33.3%       32.3%
  Selling, general and administrative expense   122,084    110,238       234,762     213,313
  Special charges                                14,665	       611        14,665	        679
Operating income	                                20,986     30,439        53,647      60,468
  Interest expense                                8,154      9,308        16,288      17,697
  Other (income) expense, net                    (1,181)    (1,226)       (2,276)     (2,741)
Income before income taxes                       14,013     22,357        39,635      45,512
  Income taxes                                   10,274      8,048        19,472      16,384
Net income from consolidated operations           3,739     14,309        20,163      29,128
  Income from unconsolidated operations           2,057      1,782         3,803       3,172
NET INCOME	                                      $5,796    $16,091       $23,966     $32,300
EARNINGS PER SHARE - BASIC AND DILUTED            $0.08      $0.22         $0.33       $0.44
Average shares outstanding - basic               71,502     73,457        71,922      73,615
Average shares outstanding - diluted             71,919     74,159        72,430      74,231



Condensed Consolidated Balance Sheet (Unaudited)
(in thousands)

                                                            5/31/99          5/31/98

Assets
Receivables                                                $182,866         $173,906
Inventories                                                 262,201          275,050
Prepaid allowances                                          150,255          158,083
Property, plant and equipment, net                          366,593          380,023
Other assets                                                260,651          265,003
   Total assets                                          $1,222,566       $1,252,065

Liabilities and shareholders' equity
Short-term borrowings                                      $206,678         $231,650
Other current liabilities                                   320,766          299,965
Long-term debt                                              243,401          258,971
Other liabilities                                           100,675           88,942
Shareholders' equity                                        351,046          372,537
   Total liabilities and shareholders' equity            $1,222,566       $1,252,065