GLENVIEW, Ill., Apr 26, 2012 (BUSINESS WIRE) --Mead Johnson Nutrition Company (NYSE: MJN) announced today its financial
results for the first quarter ended March 31, 2012.
-
Net sales of $986.6 million in the quarter increased 9 percent versus
the first quarter of 2011.
-
GAAP net earnings of $0.80 per diluted share for the first quarter of
2012 were up by 13 percent from $0.71 per diluted share a year ago.
-
Non-GAAP(1) net earnings of $0.82 per diluted share
increased 8 percent from $0.76 per diluted share for 2011.
-
Net sales were driven by the Asia/Latin America segment with growth of
22 percent with a majority of the markets achieving double-digit
growth. Sales declined 12 percent for the North America/Europe segment
as a result of lower market share and market contraction.
-
Earnings benefited from strong sales growth, a favorable foreign
exchange comparison and a lower effective tax rate, partially offset
by lower gross margins and higher demand-generation investments.
-
Full-year non-GAAP EPS guidance range increased to $3.04 to $3.14 from
$3.00 to $3.10. Including specified items estimated at $0.09 per
share, full-year GAAP EPS guidance is $2.95 to $3.05.
(1) See "Non-GAAP Financial Measures" and the
reconciliation of GAAP and non-GAAP results included in this release.
"We are very pleased with the continued strong sales and earnings growth
we delivered in the first quarter," said Chief Executive Officer Stephen
W. Golsby. "Growth in the emerging markets of Asia and Latin America was
exceptional, led by China/Hong Kong and supported by double-digit
increases in the majority of markets in the segment. Asia and Latin
America now account for 71 percent of global sales. Our overall
performance is particularly striking in light of the headwinds in the
United States from factors outside of our control, including the 2011
benefit from a competitor's recall, the impact of unfounded media
reports in late December and a continued drop in births and consumption.
We have confidence in the recovery of our U.S. market share as we move
through the second half of the year. During the quarter, we increased
demand-generation investments, along with research and development
spending, to drive innovation and sustainable growth. We also completed
the acquisition of an 80 percent equity interest in Argentina's leading
infant formula and children's nutrition brand, which expands our
presence in the Southern Cone of the Latin American region. Our
confidence has led us to increase sales and earnings guidance for the
full year."
First Quarter Results
Net sales for the first quarter totaled $986.6 million, up 9 percent
from $899.8 million a year ago. Sales benefited 5 percent from volume
and 4 percent from price. Earnings before interest and income taxes
(EBIT) for the first quarter totaled $248.8 million, up 12 percent from
$222.6 million a year earlier. The EBIT increase was driven by sales
growth and lower costs from the late 2011 completion of a new SAP
technology platform and the elimination of duplicate costs from the
overlap in shared service providers. These factors were partially offset
by lower gross margins and higher demand-generation investments.
Gross margin was down 230 basis points versus the first quarter of 2011.
The decrease was from unfavorable manufacturing variances and higher
dairy costs, partially offset by higher pricing and productivity gains.
The manufacturing variances were attributed to reduced fixed cost
absorption from lower sales and production volumes in the U.S. The
increase in demand-generation investments was from increased advertising
and promotion, sales force, and research and development expenses.
Foreign currency balance sheet remeasurement losses, mainly at our
European manufacturing entity, were lower than a year ago.
Net earnings attributable to shareholders for the first quarter of 2012
totaled $164.2 million, or $0.80 per diluted share, compared with $146.1
million, or $0.71 per diluted share, for the prior-year quarter. The
first quarter of 2012 benefited from a lower tax rate primarily
attributable to a change in geographic earnings mix.
On a non-GAAP basis, which excludes specified items, the net earnings
attributable to shareholders totaled $167.4 million, or $0.82 per
diluted share, compared with $156.8 million, or $0.76 per diluted share,
for the same quarter a year ago.
First Quarter Segment Results
The Asia/Latin America segment delivered net sales of $701.3 million for
the first quarter of 2012, up 22 percent from $576.9 million in 2011.
Sales benefited 16 percent from volume, 5 percent from price and 1
percent from foreign exchange. EBIT totaled $279.0 million, up 29
percent compared with $216.8 million for the year-ago quarter. EBIT
increased from strong sales due to market share gains as well as market
growth, partially offset by higher advertising and promotion, sales
force and distribution expenses.
The North America/Europe segment reported net sales of $285.3 million
for the first quarter of 2012, down 12 percent from $322.9 million in
2011. Sales benefited 3 percent from price, offset by a 14 percent
decline in volume and 1 percent from foreign exchange. The volume
decrease, primarily in the U.S. market, reflected lower market share,
reduced consumption and fewer births. Lower market share is attributed
to both the benefit of a competitor's recall in the prior year period
and the current impact of unfounded media reports of alleged product
contamination in December 2011. EBIT for the segment totaled $33.7
million, compared with $92.9 million for the year-ago quarter. The
decrease was entirely attributed to a decline in gross profit due to
unfavorable manufacturing variances, higher dairy costs and the decline
in net sales. The manufacturing variances are attributed to reduced
fixed cost absorption from lower sales and production volumes in the U.S.
Corporate and Other expenses decreased from the reduction of costs
related to the late 2011 completion of a new SAP technology platform and
the elimination of the duplicate costs incurred in 2011 from the overlap
in shared service providers.
Outlook for 2012
"We anticipate higher sales and earnings growth than in our previous
guidance. Annual constant dollar sales growth is expected to be in the
range of 9 percent to 11 percent. The increase in our sales outlook is
largely attributable to the Argentine acquisition but also reflects
slightly higher growth expectations in emerging markets. We expect our
non-GAAP EBIT margin as a percentage of sales to be at or slightly above
the level seen in 2011 and we are raising our full-year non-GAAP
earnings estimate to $3.04 to $3.14 per share," Mr. Golsby noted.
Conference Call Scheduled
The company will host a conference call at 8:30 a.m. CDT today during
which company executives will review first quarter financial results and
respond to questions from analysts and investors. The call will be
broadcast over the Internet at meadjohnson.com.
To listen to the call, visit the website at least 15 minutes before the
call and click on the "Investors" tab. Security analysts and investors
wishing to participate by telephone should call (800) 510-0219, pass
code: Mead Johnson. Callers outside of North America should call
+1-617-614-3451 to be connected. A replay of the conference call will be
available through midnight CDT Thursday, May 3, 2012, by calling (888)
286-8010 or outside of North America by calling +1-617-801-6888, pass
code: 49069381. The replay will also be available at meadjohnson.com.
Forward-Looking Statements
Certain statements in this news release are forward looking as defined
in the Private Securities Litigation Reform Act of 1995. These
statements, which are identified by words such as "expects," "intends"
and "believes," involve certain risks, uncertainties and assumptions
that may cause actual results to differ materially from expectations as
of the date of this news release. These risks include, but are not
limited to: (1) the ability to sustain brand strength, particularly the
"Enfa" family of brands; (2) the effect on the company's reputation of
real or perceived quality issues; (3) the adverse effect of commodity
costs; (4) increased competition from branded, private label, store and
economy-branded products; (5) the effect of an economic downturn on
consumers' purchasing behavior and customers' ability to pay for
product; (6) inventory reductions by customers; (7) the adverse effect
of changes in foreign currency exchange rates; (8) the effect of changes
in economic, political and social conditions in the markets where we
operate; (9) legislative, regulatory or judicial action that may
adversely affect the company's ability to advertise its products or
maintain product margins; (10) the possibility of changes in the Women,
Infant and Children (WIC) program, or increases in levels of
participation in WIC; and (11) the ability to develop and market new,
innovative products. For additional information on these and other
factors, see the risk factors identified in the company's periodic
reports, including the annual report on Form 10-K for 2011, quarterly
reports on Form 10-Q and current reports on Form 8-K, filed with, or
furnished to, the Securities and Exchange Commission, available upon
request or at meadjohnson.com.
The company undertakes no obligation to publicly update any
forward-looking statement, whether as a result of new information,
future events or otherwise.
About Mead Johnson
Mead Johnson, a global leader in pediatric nutrition, develops,
manufactures, markets and distributes more than 70 products in over 50
markets worldwide. The company's mission is to nourish the world's
children for the best start in life. The Mead Johnson name has been
associated with science-based pediatric nutrition products for over 100
years. The company's "Enfa" family of brands, including Enfamil(R)
infant formula, is the world's leading brand franchise in pediatric
nutrition. For more information, visit meadjohnson.com.
|
|
|
|
|
INTERIM CONSOLIDATED FINANCIAL STATEMENTS
|
|
MEAD JOHNSON NUTRITION COMPANY
|
|
CONSOLIDATED STATEMENTS OF EARNINGS
|
|
(Dollars in millions, except per share data)
|
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
|
2012
|
|
2011
|
|
NET SALES
|
|
|
$
|
986.6
|
|
$
|
899.8
|
|
Cost of Products Sold
|
|
|
|
373.5
|
|
|
320.0
|
|
|
|
|
|
|
|
|
GROSS PROFIT
|
|
|
|
613.1
|
|
|
579.8
|
|
Expenses:
|
|
|
|
|
|
|
Selling, General and Administrative
|
|
|
|
210.4
|
|
|
213.4
|
|
Advertising and Promotion
|
|
|
|
125.8
|
|
|
111.3
|
|
Research and Development
|
|
|
|
22.5
|
|
|
19.3
|
|
Other Expenses/(Income)--net
|
|
|
|
5.6
|
|
|
13.2
|
|
|
|
|
|
|
|
|
EARNINGS BEFORE INTEREST AND INCOME TAXES
|
|
|
|
248.8
|
|
|
222.6
|
|
|
|
|
|
|
|
|
Interest Expense--net
|
|
|
|
14.5
|
|
|
13.1
|
|
|
|
|
|
|
|
|
EARNINGS BEFORE INCOME TAXES
|
|
|
|
234.3
|
|
|
209.5
|
|
|
|
|
|
|
|
|
Provision for Income Taxes
|
|
|
|
64.5
|
|
|
60.6
|
|
|
|
|
|
|
|
|
NET EARNINGS
|
|
|
|
169.8
|
|
|
148.9
|
|
Less Net Earnings Attributable to Noncontrolling Interests
|
|
|
|
5.6
|
|
|
2.8
|
|
|
|
|
|
|
|
|
NET EARNINGS ATTRIBUTABLE TO SHAREHOLDERS
|
|
|
$
|
164.2
|
|
$
|
146.1
|
|
|
|
|
|
|
|
|
Earnings per Share--Basic
|
|
|
|
|
|
|
Net Earnings Attributable to Shareholders
|
|
|
$
|
0.80
|
|
$
|
0.71
|
|
|
|
|
|
|
|
|
Earnings per Share--Diluted
|
|
|
|
|
|
|
Net Earnings Attributable to Shareholders
|
|
|
$
|
0.80
|
|
$
|
0.71
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends Declared per Share
|
|
|
$
|
0.30
|
|
$
|
0.26
|
|
|
|
|
|
|
|
|
|
|
|
|
MEAD JOHNSON NUTRITION COMPANY
|
|
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
|
|
(Dollars in millions)
|
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
|
2012
|
|
2011
|
|
NET EARNINGS
|
|
|
$
|
169.8
|
|
|
$
|
148.9
|
|
|
|
|
|
|
|
|
|
OTHER COMPREHENSIVE INCOME/(LOSSES)
|
|
|
|
|
|
|
Foreign Currency Translation Adjustments
|
|
|
|
|
|
|
Translation Adjustments
|
|
|
|
22.9
|
|
|
|
32.9
|
|
|
Tax Benefit/(Expense)
|
|
|
|
(6.4
|
)
|
|
|
(4.1
|
)
|
|
Deferred Gains/(Losses) on Derivatives Qualifying as Hedges
|
|
|
|
|
|
|
Deferred Gains/(Losses) on Derivatives Qualifying as Hedges for the
Period
|
|
|
|
(6.4
|
)
|
|
|
(3.7
|
)
|
|
Reclassification Adjustment for (Gains)/Losses Included in Net Income
|
|
|
|
(1.0
|
)
|
|
|
1.4
|
|
|
Tax Benefit/(Expense)
|
|
|
|
2.2
|
|
|
|
0.7
|
|
|
Pension and Other Post Retirement Benefits
|
|
|
|
|
|
|
Deferred Gains/(Losses) on Pension and Other Post Retirement Benefits
|
|
|
|
(0.1
|
)
|
|
|
(0.2
|
)
|
|
Reclassification Adjustment for (Gains)/Losses Included in Net Income
|
|
|
|
1.8
|
|
|
|
1.2
|
|
|
Tax Benefit/(Expense)
|
|
|
|
0.8
|
|
|
|
(2.3
|
)
|
|
OTHER COMPREHENSIVE INCOME
|
|
|
|
13.8
|
|
|
|
25.9
|
|
|
|
|
|
|
|
|
|
COMPREHENSIVE INCOME
|
|
|
|
183.6
|
|
|
|
174.8
|
|
|
|
|
|
|
|
|
|
Less Comprehensive Income Attributable to Noncontrolling Interests
|
|
|
|
5.6
|
|
|
|
3.0
|
|
|
|
|
|
|
|
|
|
COMPREHENSIVE INCOME ATTRIBUTABLE TO SHAREHOLDERS
|
|
|
$
|
178.0
|
|
|
$
|
171.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MEAD JOHNSON NUTRITION COMPANY
|
|
CONSOLIDATED BALANCE SHEETS
|
|
(Dollars and shares in millions, except per share data)
|
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
2012
|
|
|
December 31,
2011
|
|
ASSETS
|
|
|
|
|
|
|
|
CURRENT ASSETS:
|
|
|
|
|
|
|
|
Cash and Cash Equivalents
|
|
|
$
|
660.7
|
|
|
|
$
|
840.3
|
|
|
Receivables--net of allowances of $6.8 and $6.3, respectively
|
|
|
|
378.4
|
|
|
|
|
352.6
|
|
|
Inventories
|
|
|
|
542.0
|
|
|
|
|
534.9
|
|
|
Deferred Income Taxes--net of valuation allowance
|
|
|
|
122.0
|
|
|
|
|
118.5
|
|
|
Income Taxes Receivable
|
|
|
|
5.6
|
|
|
|
|
3.3
|
|
|
Prepaid Expenses and Other Assets
|
|
|
|
52.6
|
|
|
|
|
40.1
|
|
|
Total Current Assets
|
|
|
|
1,761.3
|
|
|
|
|
1,889.7
|
|
|
Property, Plant, and Equipment--net
|
|
|
|
581.0
|
|
|
|
|
576.1
|
|
|
Goodwill
|
|
|
|
289.4
|
|
|
|
|
117.5
|
|
|
Other Intangible Assets--net
|
|
|
|
150.8
|
|
|
|
|
91.6
|
|
|
Deferred Income Taxes--net of valuation allowance
|
|
|
|
20.5
|
|
|
|
|
16.5
|
|
|
Other Assets
|
|
|
|
63.7
|
|
|
|
|
75.4
|
|
|
TOTAL
|
|
|
$
|
2,866.7
|
|
|
|
$
|
2,766.8
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY/(DEFICIT)
|
|
|
|
|
|
|
|
CURRENT LIABILITIES:
|
|
|
|
|
|
|
|
Accounts Payable
|
|
|
$
|
409.1
|
|
|
|
$
|
488.1
|
|
|
Dividends Payable
|
|
|
|
61.6
|
|
|
|
|
53.3
|
|
|
Note Payable
|
|
|
|
86.4
|
|
|
|
|
--
|
|
|
Accrued Expenses
|
|
|
|
187.0
|
|
|
|
|
229.0
|
|
|
Accrued Rebates and Returns
|
|
|
|
301.2
|
|
|
|
|
300.1
|
|
|
Deferred Income--current
|
|
|
|
12.5
|
|
|
|
|
47.0
|
|
|
Income Taxes--payable and deferred
|
|
|
|
68.3
|
|
|
|
|
82.6
|
|
|
Total Current Liabilities
|
|
|
|
1,126.1
|
|
|
|
|
1,200.1
|
|
|
Long-Term Debt
|
|
|
|
1,529.7
|
|
|
|
|
1,531.9
|
|
|
Deferred Income Taxes--noncurrent
|
|
|
|
41.0
|
|
|
|
|
5.2
|
|
|
Pension, Post Retirement and Post Employment Liabilities
|
|
|
|
157.8
|
|
|
|
|
157.2
|
|
|
Other Liabilities
|
|
|
|
40.6
|
|
|
|
|
40.4
|
|
|
Total Liabilities
|
|
|
|
2,895.2
|
|
|
|
|
2,934.8
|
|
|
COMMITMENTS AND CONTINGENCIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REDEEMABLE NONCONTROLLING INTEREST
|
|
|
|
30.3
|
|
|
|
|
--
|
|
|
|
|
|
|
|
|
|
|
EQUITY/(DEFICIT)
|
|
|
|
|
|
|
|
Shareholders' Equity
|
|
|
|
|
|
|
|
Common Stock, $0.01 par value: 4,200 authorized, 205.7 and 205.1
issued, respectively
|
|
|
|
2.1
|
|
|
|
|
2.1
|
|
|
Additional Paid-in/(Distributed) Capital
|
|
|
|
(710.6
|
)
|
|
|
|
(728.4
|
)
|
|
Retained Earnings
|
|
|
|
872.9
|
|
|
|
|
770.0
|
|
|
Treasury Stock--at cost
|
|
|
|
(120.5
|
)
|
|
|
|
(89.7
|
)
|
|
Accumulated Other Comprehensive Income/(Loss)
|
|
|
|
(119.3
|
)
|
|
|
|
(133.1
|
)
|
|
Total Shareholders' Equity/(Deficit)
|
|
|
|
(75.4
|
)
|
|
|
|
(179.1
|
)
|
|
Noncontrolling Interests
|
|
|
|
16.6
|
|
|
|
|
11.1
|
|
|
Total Equity/(Deficit)
|
|
|
|
(58.8
|
)
|
|
|
|
(168.0
|
)
|
|
TOTAL
|
|
|
$
|
2,866.7
|
|
|
|
$
|
2,766.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MEAD JOHNSON NUTRITION COMPANY
|
|
CONSOLIDATED STATEMENTS OF EQUITY/(DEFICIT)
|
|
AND REDEEMABLE NONCONTROLLING INTEREST
|
|
(Dollars in millions)
|
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common
Stock
|
|
Additional
Paid-in
(Distributed)
Capital
|
|
Retained
Earnings
|
|
Treasury
Stock
|
|
Accumulated
Other
Comprehensive
Income
(Loss)
|
|
Non-
controlling
Interests
|
|
Total Equity/
(Deficit)
|
|
Redeemable
Non-
controlling
Interest
|
|
BALANCE January 1, 2011
|
|
$
|
2.0
|
|
$
|
(775.6
|
)
|
|
$
|
474.0
|
|
|
$
|
(3.2
|
)
|
|
$
|
(64.6
|
)
|
|
$
|
9.1
|
|
$
|
(358.3
|
)
|
|
$
|
--
|
|
Stock-based compensation awards
|
|
|
|
|
10.0
|
|
|
|
|
|
|
|
|
|
|
|
10.0
|
|
|
|
|
Treasury stock acquired
|
|
|
|
|
|
|
|
|
(23.7
|
)
|
|
|
|
|
|
|
(23.7
|
)
|
|
|
|
Cash dividends declared
|
|
|
|
|
|
|
(53.2
|
)
|
|
|
|
|
|
|
|
|
(53.2
|
)
|
|
|
|
Net earnings
|
|
|
|
|
|
|
146.1
|
|
|
|
|
|
|
|
2.8
|
|
|
148.9
|
|
|
|
|
Other Comprehensive income
|
|
|
|
|
|
|
|
|
|
|
25.7
|
|
|
|
0.2
|
|
|
25.9
|
|
|
|
|
BALANCE March 31, 2011
|
|
$
|
2.0
|
|
$
|
(765.6
|
)
|
|
$
|
566.9
|
|
|
$
|
(26.9
|
)
|
|
$
|
(38.9
|
)
|
|
$
|
12.1
|
|
$
|
(250.4
|
)
|
|
$
|
--
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BALANCE January 1, 2012
|
|
$
|
2.1
|
|
$
|
(728.4
|
)
|
|
$
|
770.0
|
|
|
$
|
(89.7
|
)
|
|
$
|
(133.1
|
)
|
|
$
|
11.1
|
|
$
|
(168.0
|
)
|
|
$
|
--
|
|
Stock-based compensation awards
|
|
|
|
|
17.8
|
|
|
|
|
|
(13.6
|
)
|
|
|
|
|
|
|
4.2
|
|
|
|
|
Treasury stock acquired
|
|
|
|
|
|
|
|
|
(17.2
|
)
|
|
|
|
|
|
|
(17.2
|
)
|
|
|
|
Acquisition
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
--
|
|
|
|
30.2
|
|
Cash dividends declared
|
|
|
|
|
|
|
(61.3
|
)
|
|
|
|
|
|
|
|
|
(61.3
|
)
|
|
|
|
Net earnings
|
|
|
|
|
|
|
164.2
|
|
|
|
|
|
|
|
5.5
|
|
|
169.7
|
|
|
|
0.1
|
|
Other Comprehensive income
|
|
|
|
|
|
|
|
|
|
|
13.8
|
|
|
|
|
|
13.8
|
|
|
|
|
BALANCE March 31, 2012
|
|
$
|
2.1
|
|
$
|
(710.6
|
)
|
|
$
|
872.9
|
|
|
$
|
(120.5
|
)
|
|
$
|
(119.3
|
)
|
|
$
|
16.6
|
|
$
|
(58.8
|
)
|
|
$
|
30.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MEAD JOHNSON NUTRITION COMPANY
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(Dollars in millions)
|
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
|
2012
|
|
2011
|
|
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
Net Earnings
|
|
|
$
|
169.8
|
|
|
$
|
148.9
|
|
|
Adjustments to Reconcile Net Earnings to Net Cash Provided by
Operating Activities:
|
|
|
|
|
|
|
Depreciation and Amortization
|
|
|
|
18.5
|
|
|
|
17.7
|
|
|
Other
|
|
|
|
28.0
|
|
|
|
9.3
|
|
|
Changes in Assets and Liabilities
|
|
|
|
(196.0
|
)
|
|
|
25.1
|
|
|
Pension and Other Post Retirement Benefits Contributions
|
|
|
|
(0.9
|
)
|
|
|
(1.9
|
)
|
|
Net Cash Provided by Operating Activities
|
|
|
|
19.4
|
|
|
|
199.1
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
Payments for Capital Expenditures
|
|
|
|
(30.4
|
)
|
|
|
(32.6
|
)
|
|
Proceeds from Sale of Property, Plant and Equipment
|
|
|
|
0.5
|
|
|
|
0.1
|
|
|
Acquisition
|
|
|
|
(106.1
|
)
|
|
|
--
|
|
|
Net Cash Used in Investing Activities
|
|
|
|
(136.0
|
)
|
|
|
(32.5
|
)
|
|
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
Proceeds from Short-term Borrowings
|
|
|
|
30.0
|
|
|
|
0.6
|
|
|
Repayments of Short-term Borrowings
|
|
|
|
(30.0
|
)
|
|
|
(1.8
|
)
|
|
Payments of Dividends
|
|
|
|
(53.0
|
)
|
|
|
(46.1
|
)
|
|
Stock-based-compensation-related Proceeds and Excess Tax Benefits
|
|
|
|
11.5
|
|
|
|
0.7
|
|
|
Purchases of Treasury Stock
|
|
|
|
(29.6
|
)
|
|
|
(24.5
|
)
|
|
Net Cash Used in Financing Activities
|
|
|
|
(71.1
|
)
|
|
|
(71.1
|
)
|
|
Effects of Changes in Exchange Rates on Cash and Cash Equivalents
|
|
|
|
8.1
|
|
|
|
17.5
|
|
|
|
|
|
|
|
|
|
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS
|
|
|
|
(179.6
|
)
|
|
|
113.0
|
|
|
CASH AND CASH EQUIVALENTS:
|
|
|
|
|
|
|
Beginning of Period
|
|
|
|
840.3
|
|
|
|
595.6
|
|
|
End of Period
|
|
|
$
|
660.7
|
|
|
$
|
708.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MEAD JOHNSON NUTRITION COMPANY
|
|
SUPPLEMENTAL FINANCIAL INFORMATION
|
|
(Dollars in millions)
|
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
March 31,
|
|
|
|
|
|
|
|
|
|
Net Sales
|
|
|
2012
|
|
2011
|
|
% Change
|
|
Volume
|
|
Price
|
|
Foreign Exchange
|
|
Asia/Latin America
|
|
|
$
|
701.3
|
|
|
$
|
576.9
|
|
|
22
|
%
|
|
16
|
%
|
|
5
|
%
|
|
1
|
%
|
|
North America/Europe
|
|
|
|
285.3
|
|
|
|
322.9
|
|
|
(12
|
%)
|
|
(14
|
%)
|
|
3
|
%
|
|
(1
|
%)
|
|
Total
|
|
|
$
|
986.6
|
|
|
$
|
899.8
|
|
|
9
|
%
|
|
5
|
%
|
|
4
|
%
|
|
0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Before Interest and Income Taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asia/Latin America
|
|
|
$
|
279.0
|
|
|
$
|
216.8
|
|
|
29
|
%
|
|
|
|
|
|
|
|
North America/Europe
|
|
|
|
33.7
|
|
|
|
92.9
|
|
|
(64
|
%)
|
|
|
|
|
|
|
|
Corporate and Other
|
|
|
|
(63.9
|
)
|
|
|
(87.1
|
)
|
|
27
|
%
|
|
|
|
|
|
|
|
Total
|
|
|
$
|
248.8
|
|
|
$
|
222.6
|
|
|
12
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Financial Measures
This news release contains non-GAAP financial measures, including
non-GAAP EBIT, earnings and earnings per share information. The items
included in GAAP measures, but excluded for the purpose of determining
non-GAAP EBIT, earnings and earnings per share, are IT separation and
other costs (Specified Items). In addition, other items include the tax
impact on Specified Items. Non-GAAP EBIT, earnings and earnings per
share information adjusted for these items is an indication of the
company's underlying operating results and intended to enhance an
investor's overall understanding of the company's financial performance.
In addition, this information is among the primary indicators the
company uses as a basis for evaluating company performance, setting
incentive compensation targets, and planning and forecasting of future
periods. This information is not intended to be considered in isolation
or as a substitute for financial measures prepared in accordance with
GAAP. Tables that reconcile GAAP to non-GAAP disclosure follow:
|
|
|
MEAD JOHNSON NUTRITION COMPANY
|
|
RECONCILIATION OF GAAP TO NON-GAAP RESULTS
|
|
(Dollars in millions, except per share data)
|
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Before Interest
|
|
Net Earnings Attributable
|
|
Earnings per
|
|
|
|
and Income Taxes
|
|
to Shareholders
|
|
Common Share - Diluted
|
|
|
|
Three Months Ended March 31,
|
|
Three Months Ended March 31,
|
|
Three Months Ended March 31,
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
GAAP results
|
|
$
|
248.8
|
|
$
|
222.6
|
|
$
|
164.2
|
|
|
$
|
146.1
|
|
|
$
|
0.80
|
|
$
|
0.71
|
|
|
Specified Items:(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IT/other separation costs(2)
|
|
|
1.7
|
|
|
15.4
|
|
|
|
|
|
|
|
|
|
Severance and other costs(2,3)
|
|
|
1.0
|
|
|
0.2
|
|
|
|
|
|
|
|
|
|
Legal, settlements and related costs(2,3)
|
|
|
1.5
|
|
|
0.9
|
|
|
|
|
|
|
|
|
|
Specified items before income taxes
|
|
|
4.2
|
|
|
16.5
|
|
|
4.2
|
|
|
|
16.5
|
|
|
|
0.02
|
|
|
0.08
|
|
|
Income tax impact on items above
|
|
|
|
|
|
|
(1.0
|
)
|
|
|
(5.8
|
)
|
|
|
|
|
(0.03
|
)
|
|
Non-GAAP results
|
|
$
|
253.0
|
|
$
|
239.1
|
|
$
|
167.4
|
|
|
$
|
156.8
|
|
|
$
|
0.82
|
|
$
|
0.76
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) All Specified Items are included in the Corporate
and Other segment
|
|
(2) Included in Selling, General and Administrative
expenses
|
|
(3) Included in Other Expenses/Income-net
|
SOURCE: Mead Johnson Nutrition Company
Mead Johnson Nutrition Company
Investors:
Kathy
MacDonald, (847) 832-2182
kathy.macdonald@mjn.com
or
Media:
Christopher
Perille, (847) 832-2178
chris.perille@mjn.com