Mead Johnson Nutrition Reports Third Quarter and Nine-Month 2015 Earnings; Updates 2015 Guidance; and Announces $1.5 Billion Share Repurchase Plan
“Our most recently completed quarter was more challenging than we had
anticipated. However, we are delighted with the continued strength of
our North American and European businesses, as well as encouraged by the
early feedback on our new initiatives in
(1) Constant dollar figures exclude the impact of changes in foreign currency exchange rates. |
(2) Non-GAAP or as adjusted results exclude Specified Items. For a description of Specified Items, and a reconciliation of non-GAAP to GAAP and constant dollar results, see the schedules titled “Supplemental Financial Information” and “Reconciliation of Non-GAAP to GAAP Results.” |
Third Quarter 2015 | |||||||||||||||||||||||||||||
(Dollars in Millions) | |||||||||||||||||||||||||||||
(UNAUDITED) | |||||||||||||||||||||||||||||
Three Months Ended September 30, | % Change | % Change Due to | |||||||||||||||||||||||||||
% of | % of | Constant | Foreign | ||||||||||||||||||||||||||
Net Sales | 2015 | Total | 2014 | Total | Reported | Dollar | Volume | Price/Mix | Exchange | ||||||||||||||||||||
Asia | $ | 476.8 | 49 | % | $ | 561.5 | 52 | % | (15 | )% | (11 | )% | (7 | )% | (4 | )% | (4 | )% | |||||||||||
Latin America | 184.5 | 19 | % | 222.9 | 20 | % | (17 | )% | (1 | )% | (5 | )% | 4 | % | (16 | )% | |||||||||||||
North America/Europe | 316.2 | 32 | % | 306.3 | 28 | % | 3 | % | 7 | % | 3 | % | 4 | % | (4 | )% | |||||||||||||
Net Sales | $ | 977.5 | 100 | % | $ | 1,090.7 | 100 | % | (10 | )% | (4 | )% | (4 | )% | — | % | (6 | )% | |||||||||||
Three Months Ended September 30, | |||||||||||||||||
Earnings Before Interest and Income Taxes (EBIT) | 2015 |
% of |
2014 |
% of |
% Change | ||||||||||||
Asia | $ | 154.2 | 32 | % | $ | 186.2 | 33 | % | (17 | )% | |||||||
Latin America | 38.9 | 21 | % | 52.6 | 24 | % | (26 | )% | |||||||||
North America/Europe | 101.3 | 32 | % | 66.8 | 22 | % | 52 | % | |||||||||
Corporate and Other | (68.4 | ) | (63.0 | ) | (9 | )% | |||||||||||
EBIT as reported | $ | 226.0 | 23 | % | $ | 242.6 | 22 | % | (7 | )% | |||||||
Specified Items | $ | 13.0 | $ | 3.4 | |||||||||||||
Impact of F/X | $ | 25.3 | |||||||||||||||
EBIT as adjusted | $ | 264.3 | $ | 246.0 | 7 | % | |||||||||||
Nine Months 2015 |
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(Dollars in Millions) | ||||||||||||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||||||||||||
Nine Months Ended September 30, | % Change | % Change Due to | ||||||||||||||||||||||||||
% of | % of | Constant | Foreign | |||||||||||||||||||||||||
Net Sales | 2015 | Total | 2014 | Total | Reported | Dollar | Volume | Price/Mix | Exchange | |||||||||||||||||||
Asia | $ | 1,571.0 | 51% | $ | 1,729.8 | 52 | % | (9 | )% | (7 | )% | (6 | )% | (1 | )% | (2 | )% | |||||||||||
Latin America | 587.3 | 19% | 659.7 | 20 | % | (11 | )% | 4 | % | (3 | )% | 7 | % | (15 | )% | |||||||||||||
North America/Europe | 946.0 | 30% | 925.6 | 28 | % | 2 | % | 5 | % | 1 | % | 4 | % | (3 | )% | |||||||||||||
Net Sales | $ | 3,104.3 | 100% | $ | 3,315.1 | 100 | % | (6 | )% | (1 | )% | (3 | )% | 2 | % | (5 | )% | |||||||||||
Nine Months Ended September 30, | |||||||||||||||||
Earnings Before Interest and Income Taxes (EBIT) | 2015 |
% of |
2014 |
% of |
% Change |
||||||||||||
Asia | $ | 542.1 | 35 | % | $ | 623.4 | 36 | % | (13 | )% | |||||||
Latin America | 141.0 | 24 | % | $ | 152.6 | 23 | % | (8 | )% | ||||||||
North America/Europe | 264.9 | 28 | % | $ | 200.9 | 22 | % | 32 | % | ||||||||
Corporate and Other | (207.6 | ) | $ | (198.2 | ) | (5 | )% | ||||||||||
EBIT as reported | $ | 740.4 | 24 | % | $ | 778.7 | 23 | % | (5 | )% | |||||||
Specified Items | $ | 20.8 | $ | 20.9 | |||||||||||||
Impact of F/X | $ | 42.4 | |||||||||||||||
EBIT as adjusted | $ | 803.6 | $ | 799.6 | 1 | % | |||||||||||
Cash Flow Items and Share Repurchases
Outlook for 2015
The company expects full year 2015 constant dollar revenue to be 2% to 3% below the prior year. Foreign exchange is assumed to adversely affect translation into U.S. dollars, resulting in estimated reported sales of 7% to 8% below the prior year.
“With the majority of the year behind us, we estimate constant dollar revenue to be slightly below the prior year and non-GAAP EPS to fall between $3.33 to $3.43. This has shaped up to be a challenging year on several fronts, and I am satisfied with the way we are adjusting our strategies appropriately in recognition of environmental changes. We remain committed to our investment in growth initiatives and innovation critical to our long term success. We are building momentum behind our Fuel For Growth productivity initiative to ensure we can fund growth initiatives appropriately and support a gradual improvement in profitability, while also delivering our long-term financial ambition. In today’s Investor Day presentations, we will provide more detail on our growth initiatives and cost reduction actions as well as outline a plan to return capital to shareholders via a new, larger share buyback program. In the latest quarter, we bought back approximately three percent of our outstanding shares. Consistent with my earlier statements that we will optimize our capital structure over time, the next phase of our share repurchase program will go further,” said Kasper Jakobsen, Chief Executive Officer.
Specified Items are expected to be $0.18 per share, excluding any further mark-to-market pension adjustments. As a result, full-year GAAP EPS is expected to be in the range of $3.15 to $3.25.
Conference Call Scheduled
Mead Johnson will host a conference call at
The earnings call will be followed by the bi-annual Investor Day event
from
Forward-Looking Statements
Certain statements in this news release are forward-looking as defined
in the Private Securities Litigation Reform Act of 1995. These
forward-looking statements may be identified by the fact they use words
such as “should,” “expect,” “anticipate,” “estimate,” “target,” “may,”
“project,” “guidance,” “intend,” “plan,” “believe” and other words and
terms of similar meaning and expression. Such statements are likely to
relate to, among other things, a discussion of goals, plans and
projections regarding financial position, results of operations, cash
flows, market position, product development, product approvals, sales
efforts, expenses, capital expenditures, performance or results of
current and anticipated products and the outcome of contingencies such
as legal proceedings and financial results. Forward-looking statements
can also be identified by the fact that they do not relate strictly to
historical or current facts. Such forward-looking statements are based
on current expectations that involve inherent 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 effect of
regulatory restrictions related to the company’s products; (4) the
adverse effect of commodity costs; (5) increased competition from
branded, private label, store and economy-branded products; (6) the
effect of an economic downturn on consumers’ purchasing behavior and
customers’ ability to pay for product; (7) inventory reductions by
customers; (8) the adverse effect of changes in foreign currency
exchange rates; (9) the effect of changes in economic, political and
social conditions in the markets where we operate; (10) changing
consumer preferences; (11) the possibility of changes in the WIC(3)
program, or participation in WIC; (12) legislative, regulatory or
judicial action that may adversely affect the company’s ability to
advertise its products, maintain product margins, or negatively impact
the company’s reputation or result in fines or penalties that decrease
earnings; and (13) the ability to develop and market new, innovative
products. For additional information regarding these and other factors,
see the company’s filings with the
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® infant formula, is the world’s leading brand franchise in pediatric nutrition. For more information, go to www.meadjohnson.com.
(3)
MEAD JOHNSON NUTRITION COMPANY | ||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS | ||||||||||||||||
(Dollars and shares in millions, except per share data) | ||||||||||||||||
(UNAUDITED) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
NET SALES | $ | 977.5 | $ | 1,090.7 | $ | 3,104.3 | $ | 3,315.1 | ||||||||
Cost of Products Sold | 346.8 | 437.9 | 1,096.7 | 1,270.4 | ||||||||||||
GROSS PROFIT | 630.7 | 652.8 | 2,007.6 | 2,044.7 | ||||||||||||
Operating Expenses: | ||||||||||||||||
Selling, General and Administrative | 216.1 | 240.2 | 679.5 | 715.4 | ||||||||||||
Advertising and Promotion | 156.1 | 158.9 | 490.7 | 489.2 | ||||||||||||
Research and Development | 26.3 | 28.7 | 79.9 | 82.5 | ||||||||||||
Other (Income)/Expenses – net | 6.2 | (17.6 | ) | 17.1 | (21.1 | ) | ||||||||||
EARNINGS BEFORE INTEREST AND INCOME TAXES | 226.0 | 242.6 | 740.4 | 778.7 | ||||||||||||
Interest Expense—net | 14.8 | 18.3 | 42.5 | 46.0 | ||||||||||||
EARNINGS BEFORE INCOME TAXES | 211.2 | 224.3 | 697.9 | 732.7 | ||||||||||||
Provision for Income Taxes | 56.6 | 36.0 | 173.6 | 160.5 | ||||||||||||
NET EARNINGS | 154.6 | 188.3 | 524.3 | 572.2 | ||||||||||||
Less Net Earnings/(Loss) Attributable to Noncontrolling Interests | (0.6 | ) | 0.7 | (1.2 | ) | 10.8 | ||||||||||
NET EARNINGS ATTRIBUTABLE TO SHAREHOLDERS | $ | 155.2 | $ | 187.6 | $ | 525.5 | $ | 561.4 | ||||||||
Earnings per Share(a)– Basic | ||||||||||||||||
Net Earnings Attributable to Shareholders | $ | 0.77 | $ | 0.93 | $ | 2.59 | $ | 2.77 | ||||||||
Earnings per Share(a)– Diluted | ||||||||||||||||
Net Earnings Attributable to Shareholders | $ | 0.77 | $ | 0.92 | $ | 2.59 | $ | 2.77 | ||||||||
Weighted Average Shares – Diluted | 201.7 | 202.7 | 202.6 | 202.6 | ||||||||||||
Dividends Declared per Share | $ | 0.4125 | $ | 0.3750 | $ | 1.2375 | $ | 1.1250 | ||||||||
(a) The numerator for basic and diluted earnings per share is net earnings attributable to shareholders. Net earnings has been reduced by dividends and undistributed earnings attributable to unvested share based incentive plan awards. The denominator for basic earnings per share is the weighted-average shares outstanding during the period. The denominator for diluted earnings per share is the weighted-average shares outstanding adjusted for the effect of dilutive stock options and performance share awards. |
MEAD JOHNSON NUTRITION COMPANY | ||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
(Dollars and shares in millions, except per share data) | ||||||||
(UNAUDITED) | ||||||||
September 30, 2015 | December 31, 2014 | |||||||
ASSETS | ||||||||
CURRENT ASSETS: | ||||||||
Cash and Cash Equivalents | $ | 1,363.5 | $ | 1,297.7 | ||||
Receivables—net of allowances of $6.5 and $9.6, respectively | 368.9 | 387.8 | ||||||
Inventories | 518.6 | 555.5 | ||||||
Deferred Income Taxes—net of valuation allowance | 77.9 | 86.8 | ||||||
Income Taxes Receivable | 37.2 | 7.7 | ||||||
Prepaid Expenses and Other Assets | 69.1 | 82.6 | ||||||
Total Current Assets | 2,435.2 | 2,418.1 | ||||||
Property, Plant, and Equipment—net | 933.2 | 912.7 | ||||||
Goodwill | 147.0 | 162.7 | ||||||
Other Intangible Assets—net | 65.0 | 75.4 | ||||||
Deferred Income Taxes—net of valuation allowance | 47.9 | 65.1 | ||||||
Other Assets | 149.6 | 142.5 | ||||||
TOTAL | $ | 3,777.9 | $ | 3,776.5 | ||||
LIABILITIES AND EQUITY | ||||||||
CURRENT LIABILITIES: | ||||||||
Short-term Borrowings | $ | 1.5 | $ | 4.1 | ||||
Accounts Payable | 450.1 | 512.3 | ||||||
Dividends Payable | 83.0 | 76.6 | ||||||
Accrued Expenses and Other Liabilities | 198.1 | 203.7 | ||||||
Accrued Rebates and Returns | 368.8 | 329.1 | ||||||
Deferred Income—current | 20.9 | 34.3 | ||||||
Income Taxes—payable and deferred | 71.2 | 46.4 | ||||||
Total Current Liabilities | 1,193.6 | 1,206.5 | ||||||
Long-Term Debt | 1,839.3 | 1,503.9 | ||||||
Deferred Income Taxes—noncurrent | 10.3 | 12.4 | ||||||
Pension and Other Post-employment Liabilities | 136.5 | 211.1 | ||||||
Other Liabilities - noncurrent | 206.0 | 192.8 | ||||||
Total Liabilities | 3,385.7 | 3,126.7 | ||||||
COMMITMENTS AND CONTINGENCIES | ||||||||
REDEEMABLE NONCONTROLLING INTEREST | — | 66.0 | ||||||
EQUITY | ||||||||
Shareholders’ Equity | ||||||||
Common Stock, $0.01 par value: 3,000 authorized, 207.7 and 207.2 issued, respectively | 2.1 | 2.1 | ||||||
Additional Paid-in/(Distributed) Capital | (572.3 | ) | (641.3 | ) | ||||
Retained Earnings | 2,026.4 | 1,775.0 | ||||||
Treasury Stock—at cost | (799.6 | ) | (362.6 | ) | ||||
Accumulated Other Comprehensive Loss | (305.1 | ) | (198.9 | ) | ||||
Total Shareholders’ Equity | 351.5 | 574.3 | ||||||
Noncontrolling Interests | 40.7 | 9.5 | ||||||
Total Equity | 392.2 | 583.8 | ||||||
TOTAL | $ | 3,777.9 | $ | 3,776.5 |
MEAD JOHNSON NUTRITION COMPANY | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Dollars in millions) | ||||||||
(UNAUDITED) | ||||||||
Nine Months Ended September 30, | ||||||||
2015 | 2014 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net Earnings | $ | 524.3 | $ | 572.2 | ||||
Adjustments to Reconcile Net Earnings to Net Cash Provided by Operating Activities: | ||||||||
Depreciation and Amortization | 73.4 | 67.8 | ||||||
Other | 63.1 | 30.2 | ||||||
Changes in Assets and Liabilities | 34.7 | (56.4 | ) | |||||
Payments for Settlement of Interest Rate Forward Swaps | — | (45.0 | ) | |||||
Pension and Other Post-employment Benefit Contributions | (86.6 | ) | (4.2 | ) | ||||
Net Cash Provided by Operating Activities | 608.9 | 564.6 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Capital Expenditures | (125.2 | ) | (144.0 | ) | ||||
Sale of Property, Plant and Equipment | 0.4 | 0.2 | ||||||
Proceeds from/(Investment in) Other Companies | — | 4.0 | ||||||
Net Cash Used in Investing Activities | (124.8 | ) | (139.8 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Proceeds from Short-term Borrowings | 1.5 | 3.2 | ||||||
Repayments of Short-term Borrowings | (4.0 | ) | (3.5 | ) | ||||
Repayments of Notes Payable | — | (500.0 | ) | |||||
Payments of Dividends | (243.6 | ) | (220.7 | ) | ||||
Purchases of Treasury Stock | (437.0 | ) | (49.7 | ) | ||||
Long-term Notes, net of original issue discounts and expenses paid | — | 492.3 | ||||||
Long-term Revolver Borrowings | 322.0 | — | ||||||
Stock-based Compensation related Proceeds and Excess Tax Benefits | 24.0 | 27.3 | ||||||
Stock-based Compensation Tax withholdings | (11.3 | ) | (7.9 | ) | ||||
Purchase of Trading Securities | (16.2 | ) | — | |||||
Sale of Trading Securities | 21.7 | — | ||||||
Purchase of Redeemable Shares | (24.2 | ) | — | |||||
Distributions to Noncontrolling Interests | (6.9 | ) | (4.4 | ) | ||||
Net Cash Used in Financing Activities | (374.0 | ) | (263.4 | ) | ||||
Effects of Changes in Exchange Rates on Cash and Cash Equivalents | (44.3 | ) | (17.0 | ) | ||||
NET INCREASE IN CASH AND CASH EQUIVALENTS | 65.8 | 144.4 | ||||||
CASH AND CASH EQUIVALENTS: | ||||||||
Beginning of Period | 1,297.7 | 1,050.8 | ||||||
End of Period | $ | 1,363.5 | $ | 1,195.2 |
MEAD JOHNSON NUTRITION COMPANY |
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RECONCILIATION OF NON-GAAP TO GAAP RESULTS |
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(Dollars in millions, except per share data) |
||||||||||||||||||||||||||||||||
(UNAUDITED) |
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This news release contains non-GAAP financial measures, which may include non-GAAP net sales, gross profit, certain components of operating expenses including selling, general and administrative, research and development and other (income)/expenses net, EBIT, earnings and earnings per share information. The items included in GAAP measures, but excluded for the purpose of determining the above listed non-GAAP financial measures, include significant income/expenses not indicative of underlying operating results, including the related tax effect. The above listed non-GAAP measures represent an indication of the company’s underlying operating results and are 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 non-GAAP to GAAP disclosure follow. |
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Three Months Ended September 30, 2015 | Three Months Ended September 30, 2014 | |||||||||||||||||||||||||||||||
Specified Items (a) | Specified Items (a) | |||||||||||||||||||||||||||||||
Mark-to- | Mark-to- | |||||||||||||||||||||||||||||||
As | Market | All | As | As | Market | All |
As |
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Reported | Pension |
Other (b) |
Adjusted | Reported | Pension |
Other (b) |
Adjusted |
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NET SALES | $ | 977.5 | $ | — | $ | — | $ | 977.5 | $ | 1,090.7 | $ | — | $ | — | $ | 1,090.7 | ||||||||||||||||
Cost of Products Sold | 346.8 | (3.9 | ) | — | 342.9 | 437.9 | (3.2 | ) | — | 434.7 | ||||||||||||||||||||||
GROSS PROFIT | 630.7 | 3.9 | — | 634.6 | 652.8 | 3.2 | — | 656.0 | ||||||||||||||||||||||||
GROSS MARGIN % | 64.5 | % | 0.4 | % | — | % | 64.9 | % | 59.9 | % | 0.2 | % | — | % | 60.1 | % | ||||||||||||||||
Operating Expenses: | ||||||||||||||||||||||||||||||||
Selling, General and Administrative | 216.1 | (6.3 | ) | (0.6 | ) | 209.2 | 240.2 | (5.2 | ) | (2.7 | ) | 232.3 | ||||||||||||||||||||
Advertising and Promotion | 156.1 | — | — | 156.1 | 158.9 | — | — | 158.9 | ||||||||||||||||||||||||
Research and Development | 26.3 | (1.2 | ) | — | 25.1 | 28.7 | (0.9 | ) | — | 27.8 | ||||||||||||||||||||||
Other (Income)/Expenses – net | 6.2 | — | (1.0 | ) | 5.2 | (17.6 | ) | — | 8.6 | (9.0 | ) | |||||||||||||||||||||
EARNINGS BEFORE INTEREST AND INCOME TAXES | 226.0 | 11.4 | 1.6 | 239.0 | 242.6 | 9.3 | (5.9 | ) | 246.0 | |||||||||||||||||||||||
EBIT as a % of Sales | 23.1 | % | 1.2 | % | 0.2 | % | 24.5 | % | 22.2 | % | 0.9 | % | (0.5 | )% | 22.6 | % | ||||||||||||||||
Interest Expense – net | 14.8 | — | — | 14.8 | 18.3 | — | — | 18.3 | ||||||||||||||||||||||||
EARNINGS BEFORE INCOME TAXES | 211.2 | 11.4 | 1.6 | 224.2 | 224.3 | 9.3 | (5.9 | ) | 227.7 | |||||||||||||||||||||||
Provision for Income Taxes | 56.6 | 4.0 | 2.4 | 63.0 | 36.0 | 3.3 | (0.2 | ) | 39.1 | |||||||||||||||||||||||
Effective Tax Rate | 26.8 | % | 0.4 | % | 0.9 | % | 28.1 | % | 16.0 | % | 0.8 | % | 0.4 | % | 17.2 | % | ||||||||||||||||
NET EARNINGS | 154.6 | 7.4 | (0.8 | ) | 161.2 | 188.3 | 6.0 | (5.7 | ) | 188.6 | ||||||||||||||||||||||
Less Net Earnings/(Loss) Attributable to Noncontrolling Interests | (0.6 | ) | — | — | (0.6 | ) | 0.7 | — | — | 0.7 | ||||||||||||||||||||||
NET EARNINGS ATTRIBUTABLE TO SHAREHOLDERS | $ | 155.2 | $ | 7.4 | $ | (0.8 | ) | $ | 161.8 | $ | 187.6 | $ | 6.0 | $ | (5.7 | ) | $ | 187.9 | ||||||||||||||
Earnings per Share– Diluted | ||||||||||||||||||||||||||||||||
Net Earnings Attributable to Shareholders | $ | 0.77 | $ | 0.04 | $ | (0.01 | ) | $ | 0.80 | $ | 0.92 | $ | 0.03 | $ | (0.02 | ) | $ | 0.93 | ||||||||||||||
Certain figures do not sum due to rounding. |
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(a) All Specified Items are included in Corporate and Other. |
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(b) Specified Items include legal, settlement and related costs, severance and other expenses, a loss on marketable securities and a pension curtailment gain. |
MEAD JOHNSON NUTRITION COMPANY | ||||||||||||||||||||||||||||||||||||
RECONCILIATION OF NON-GAAP TO GAAP RESULTS | ||||||||||||||||||||||||||||||||||||
(Dollars in millions, except per share data) | ||||||||||||||||||||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2015 | Nine Months Ended September 30, 2014 | |||||||||||||||||||||||||||||||||||
Specified Items (a) | Specified Items (a) | |||||||||||||||||||||||||||||||||||
Mark-to- | Mark-to- | |||||||||||||||||||||||||||||||||||
As | Market | Investigation | All | As | As | Market | All | As | ||||||||||||||||||||||||||||
Reported | Pension | Settlement |
Other (b) |
Adjusted | Reported | Pension |
Other (b) |
Adjusted | ||||||||||||||||||||||||||||
NET SALES | $ | 3,104.3 | $ | — | $ | 3,104.3 | $ | 3,315.1 | $ | — | $ | — | $ | 3,315.1 | ||||||||||||||||||||||
Cost of Products Sold | 1,096.7 | (3.4 | ) | — | 1,093.3 | 1,270.4 | (5.7 | ) | — | 1,264.7 | ||||||||||||||||||||||||||
GROSS PROFIT | 2,007.6 | 3.4 | — | — | 2,011.0 | 2,044.7 | 5.7 | — | 2,050.4 | |||||||||||||||||||||||||||
GROSS MARGIN % | 64.7 | % | 0.1 | % | — | % | — | % | 64.8 | % | 61.7 | % | 0.2 | % | — | % | 61.9 | % | ||||||||||||||||||
Operating Expenses: | ||||||||||||||||||||||||||||||||||||
Selling, General and Administrative | 679.5 | (5.5 | ) | — | (1.9 | ) | 672.1 | 715.4 | (9.1 | ) | (13.1 | ) | 693.2 | |||||||||||||||||||||||
Advertising and Promotion | 490.7 | — | — | — | 490.7 | 489.2 | — | — | 489.2 | |||||||||||||||||||||||||||
Research and Development | 79.9 | (1.0 | ) | — | — | 78.9 | 82.5 | (1.6 | ) | — | 80.9 | |||||||||||||||||||||||||
Other (Income)/Expenses – net | 17.1 | — | (12.0 | ) | 3.0 | 8.1 | (21.1 | ) | — | 8.6 | (12.5 | ) | ||||||||||||||||||||||||
EARNINGS BEFORE INTEREST AND INCOME TAXES | 740.4 | 9.9 | 12.0 | (1.1 | ) | 761.2 | 778.7 | 16.4 | 4.5 | 799.6 | ||||||||||||||||||||||||||
EBIT as a % of Sales | 23.9 | % | 0.3 | % | 0.4 | % | — | % | 24.5 | % | 23.5 | % | 0.5 | % | 0.1 | % | 24.1 | % | ||||||||||||||||||
Interest Expense – net | 42.5 | — | — | — | 42.5 | 46.0 | — | — | 46.0 | |||||||||||||||||||||||||||
EARNINGS BEFORE INCOME TAXES | 697.9 | 9.9 | 12.0 | (1.1 | ) | 718.7 | 732.7 | 16.4 | 4.5 | 753.6 | ||||||||||||||||||||||||||
Provision for Income Taxes | 173.6 | 3.5 | 3.1 | 0.6 | 180.8 | 160.5 | 5.7 | 3.4 | 169.6 | |||||||||||||||||||||||||||
Effective Tax Rate | 24.9 | % | 0.1 | % | 0.1 | % | — | % | 25.2 | % | 21.9 | % | 0.3 | % | 0.3 | % | 22.5 | % | ||||||||||||||||||
NET EARNINGS | 524.3 | 6.4 | 8.9 | (1.7 | ) | 537.9 | 572.2 | 10.7 | 1.1 | 584.0 | ||||||||||||||||||||||||||
Less Net Earnings/(Loss) Attributable to Noncontrolling Interests | (1.2 | ) | — | — | — | (1.2 | ) | 10.8 | — | — | 10.8 | |||||||||||||||||||||||||
NET EARNINGS ATTRIBUTABLE TO SHAREHOLDERS | $ | 525.5 | $ | 6.4 | $ | 8.9 | $ | (1.7 | ) | $ | 539.1 | $ | 561.4 | $ | 10.7 | $ | 1.1 | $ | 573.2 | |||||||||||||||||
Earnings per Share– Diluted | ||||||||||||||||||||||||||||||||||||
Net Earnings Attributable to Shareholders | $ | 2.59 | $ | 0.03 | $ | 0.03 | $ | — | $ | 2.65 | $ | 2.77 | $ | 0.05 | $ | — | $ | 2.82 | ||||||||||||||||||
Certain figures do not sum due to rounding. |
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(a) All Specified Items are included in Corporate and Other. |
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(b) Specified Items include legal, settlement and related costs, severance and other expenses, a pension curtailment gain and a gain on marketable securities. |
View source version on businesswire.com: http://www.businesswire.com/news/home/20151022005694/en/
Source:
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
10/22/2015