Mead Johnson Delivers Strong Earnings; Second Quarter Constant Dollar Sales Up 11 Percent
“Our sales and earnings growth continued to be strong in the second
quarter,” said Chief Executive Officer Stephen W. Golsby. “Sales growth
was broad-based across
Second Quarter Results
Net sales for the second quarter totaled $1,012.3 million, up 9 percent from $932.0 million a year ago. Sales benefited 8 percent from price, 3 percent from volume, reduced by 2 percent from foreign exchange. Earnings before interest and income taxes (EBIT) for the second quarter totaled $248.3 million, up 22 percent from $203.7 million a year earlier. The EBIT increase was driven by sales growth, lower IT and other separation expenses following the 2011 SAP implementation, favorable balance sheet re-measurement gains from foreign exchange and lower performance-based compensation accruals. These factors were partially offset by lower gross margins, higher demand-generation investments and the earlier recognition of pension settlement expense compared to the prior year.
Gross margin was down 150 basis points versus the second quarter of
2011. The decrease was from higher commodity costs and unfavorable
manufacturing variances, largely attributed to lower production volume
in our
Net earnings attributable to shareholders for the second quarter of 2012 totaled $165.8 million, or $0.81 per diluted share, compared with $132.1 million, or $0.64 per diluted share, a 27 percent increase from the prior-year quarter. In addition to EBIT increases, the second quarter of 2012 benefited from a lower effective tax rate.
On a non-GAAP basis, which excludes specified items, the net earnings attributable to shareholders totaled $171.2 million, or $0.83 per diluted share, compared with $148.7 million, or $0.72 per diluted share, a 15 percent increase from the same quarter a year ago.
Second Quarter Segment Results
The
The
Corporate and Other expenses decreased from lower IT and separation costs, the elimination of duplicate shared service costs during the SAP implementation completed in late 2011, foreign currency balance sheet re-measurement gains and lower performance-based compensation accruals. These factors were partially offset by the recognition of pension settlement expense. Similar pension settlement expense was recognized in the fourth quarter of the prior year.
Six-Month Results
Net sales for the six months ended
Gross margin was down 190 basis points versus the first six months of
2011 due to higher dairy costs in the
EBIT for the first half of 2012 totaled $497.1 million, up 17 percent from $426.3 million a year earlier. The EBIT increase was driven by sales growth, lower expenses related to the SAP implementation completed in 2011 and the elimination of duplicate costs from the overlap in shared service providers and favorable foreign exchange. These factors were partially offset by lower gross margins, higher demand-generation spending and the timing of pension settlement expense.
The effective tax rate for the six months ended
Net earnings attributable to shareholders for the first half of 2012
totaled $330.0 million, or $1.61 per diluted share, compared with $278.2
million, or $1.35 per diluted share, a 19 percent increase from the
prior-year period. Net earnings for the six months ended
On a non-GAAP basis, which excludes specified items, net earnings attributable to shareholders totaled $338.6 million, or $1.65 per diluted share, for the first half of 2012, compared with $305.5 million, or $1.48 per diluted share, an 11 percent increase from the same period a year ago.
Six-Month Segment Results
The
The
Corporate and Other expenses decreased from lower IT and separation costs, foreign currency balance sheet re-measurement gains and the elimination of duplicate shared service costs incurred during the SAP implementation project completed in 2011, partially offset by pension settlement expense triggered earlier than in the prior year.
Outlook for 2012
“We are pleased with our strong second quarter results; however, we
anticipate slower growth in the second half of 2012. Annual constant
dollar sales are now expected to grow in the range of 8 to 9 percent
compared to the 9 to 11 percent sales growth anticipated earlier in the
year. Slower growth in
Conference Call Scheduled
The company will host a conference call at
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
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, 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 June 30, | Six Months Ended June 30, | |||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||
NET SALES | $ | 1,012.3 | $ | 932.0 | $ | 1,998.9 | $ | 1,831.8 | ||||||
Cost of Products Sold | 372.3 | 329.1 | 745.8 | 649.1 | ||||||||||
GROSS PROFIT | 640.0 | 602.9 | 1,253.1 | 1,182.7 | ||||||||||
Expenses: | ||||||||||||||
Selling, General and Administrative | 221.1 | 246.6 | 431.5 | 460.0 | ||||||||||
Advertising and Promotion | 148.7 | 131.9 | 274.5 | 243.2 | ||||||||||
Research and Development | 23.6 | 22.2 | 46.1 | 41.5 | ||||||||||
Other Expenses/(Income)—net | (1.7 | ) | (1.5 | ) | 3.9 | 11.7 | ||||||||
EARNINGS BEFORE INTEREST AND INCOME TAXES | 248.3 | 203.7 | 497.1 | 426.3 | ||||||||||
Interest Expense—net | 17.6 | 12.2 | 32.1 | 25.3 | ||||||||||
EARNINGS BEFORE INCOME TAXES | 230.7 | 191.5 | 465.0 | 401.0 | ||||||||||
Provision for Income Taxes | 59.6 | 56.6 | 124.1 | 117.2 | ||||||||||
NET EARNINGS | 171.1 | 134.9 | 340.9 | 283.8 | ||||||||||
Less Net Earnings Attributable to Noncontrolling Interests | 5.3 | 2.8 | 10.9 | 5.6 | ||||||||||
NET EARNINGS ATTRIBUTABLE TO SHAREHOLDERS | $ | 165.8 | $ | 132.1 | $ | 330.0 | $ | 278.2 | ||||||
Earnings per Share—Basic | ||||||||||||||
Net Earnings Attributable to Shareholders | $ | 0.81 | $ | 0.64 | $ | 1.61 | $ | 1.36 | ||||||
Earnings per Share—Diluted | ||||||||||||||
Net Earnings Attributable to Shareholders | $ | 0.81 | $ | 0.64 | $ | 1.61 | $ | 1.35 | ||||||
Dividends Declared per Share | $ | 0.30 | $ | 0.26 | $ | 0.60 | $ | 0.52 |
MEAD JOHNSON NUTRITION COMPANY | ||||||||||||||||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||||||||||||||
(Dollars in millions) | ||||||||||||||||
(UNAUDITED) | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
NET EARNINGS | $ | 171.1 | $ | 134.9 | $ | 340.9 | $ | 283.8 | ||||||||
OTHER COMPREHENSIVE INCOME/(LOSSES) | ||||||||||||||||
Foreign Currency Translation Adjustments | ||||||||||||||||
Translation Adjustments | (52.7 | ) | 3.9 | (29.8 | ) | 36.8 | ||||||||||
Tax Benefit/(Expense) | 11.7 | (1.2 | ) | 5.3 | (5.3 | ) | ||||||||||
Deferred Gains/(Losses) on Derivatives Qualifying as Hedges | ||||||||||||||||
Deferred Gains/(Losses) on Derivatives Qualifying as Hedges for the Period | 2.3 | (2.1 | ) | (4.1 | ) | (5.8 | ) | |||||||||
Reclassification Adjustment for (Gains)/Losses Included in Net Income | 0.5 | 2.0 | (0.5 | ) | 3.4 | |||||||||||
Tax Benefit/(Expense) | (0.8 | ) | — | 1.4 | 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 | 10.7 | 1.3 | 12.5 | 2.5 | ||||||||||||
Tax Benefit/(Expense) | (4.0 | ) | (0.4 | ) | (3.2 | ) | (2.7 | ) | ||||||||
OTHER COMPREHENSIVE INCOME | (32.2 | ) | 3.7 | (18.4 | ) | 29.6 | ||||||||||
COMPREHENSIVE INCOME | 138.9 | 138.6 | 322.5 | 313.4 | ||||||||||||
Less Comprehensive Income Attributable to Noncontrolling Interests | 5.3 | 2.8 | 10.9 | 5.8 | ||||||||||||
COMPREHENSIVE INCOME ATTRIBUTABLE TO SHAREHOLDERS | $ | 133.6 | $ | 135.8 | $ | 311.6 | $ | 307.6 |
MEAD JOHNSON NUTRITION COMPANY | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
(Dollars and shares in millions, except per share data) | ||||||||
(UNAUDITED) | ||||||||
June 30, | December 31, | |||||||
2012 | 2011 | |||||||
ASSETS | ||||||||
CURRENT ASSETS: | ||||||||
Cash and Cash Equivalents | $ | 787.3 | $ | 840.3 | ||||
Receivables—net of allowances of $6.7 and $6.3, respectively | 366.2 | 352.6 | ||||||
Inventories | 494.5 | 534.9 | ||||||
Deferred Income Taxes—net of valuation allowance | 115.4 | 118.5 | ||||||
Income Taxes Receivable | 6.2 | 3.3 | ||||||
Prepaid Expenses and Other Assets | 58.1 | 40.1 | ||||||
Total Current Assets | 1,827.7 | 1,889.7 | ||||||
Property, Plant, and Equipment—net | 579.8 | 576.1 | ||||||
Goodwill | 283.9 | 117.5 | ||||||
Other Intangible Assets—net | 143.5 | 91.6 | ||||||
Deferred Income Taxes—net of valuation allowance | 20.1 | 16.5 | ||||||
Other Assets | 104.8 | 75.4 | ||||||
TOTAL | $ | 2,959.8 | $ | 2,766.8 | ||||
LIABILITIES AND EQUITY/(DEFICIT) | ||||||||
CURRENT LIABILITIES: | ||||||||
Accounts Payable | $ | 441.4 | $ | 488.1 | ||||
Dividends Payable | 61.6 | 53.3 | ||||||
Note Payable | 83.7 | — | ||||||
Accrued Expenses | 184.0 | 229.0 | ||||||
Accrued Rebates and Returns | 308.2 | 300.1 | ||||||
Deferred Income—current | 2.7 | 47.0 | ||||||
Income Taxes—payable and deferred | 61.0 | 82.6 | ||||||
Total Current Liabilities | 1,142.6 | 1,200.1 | ||||||
Long-Term Debt | 1,527.5 | 1,531.9 | ||||||
Deferred Income Taxes—noncurrent | 20.6 | 5.2 | ||||||
Pension, Post Retirement and Post Employment Liabilities | 157.2 | 157.2 | ||||||
Other Liabilities | 77.8 | 40.4 | ||||||
Total Liabilities | 2,925.7 | 2,934.8 | ||||||
COMMITMENTS AND CONTINGENCIES | ||||||||
REDEEMABLE NONCONTROLLING INTEREST | 32.3 | — | ||||||
EQUITY/(DEFICIT) | ||||||||
Shareholders’ Equity | ||||||||
Common Stock, $0.01 par value: 3,000 authorized, 205.9 and 205.1 issued, respectively | 2.1 | 2.1 | ||||||
Additional Paid-in/(Distributed) Capital |
(695.4 |
) |
(728.4 |
) |
||||
Retained Earnings | 975.9 | 770.0 | ||||||
Treasury Stock—at cost |
(148.5 |
) |
(89.7 |
) |
||||
Accumulated Other Comprehensive Income/(Loss) |
(151.5 |
) |
(133.1 |
) |
||||
Total Shareholders’ Equity/(Deficit) |
(17.4 |
) |
(179.1 |
) |
||||
Noncontrolling Interests | 19.2 | 11.1 | ||||||
Total Equity/(Deficit) | 1.8 |
(168.0 |
) |
|||||
TOTAL | $ | 2,959.8 | $ | 2,766.8 |
MEAD JOHNSON NUTRITION COMPANY | ||||||||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF EQUITY/(DEFICIT) |
||||||||||||||||||||||||||||||
AND REDEEMABLE NONCONTROLLING INTEREST |
||||||||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||||||||||||||
Additional | Accumulated | Redeemable | ||||||||||||||||||||||||||||
Paid-in | Other | Non- | Non- | |||||||||||||||||||||||||||
Common | (Distributed) | Retained | Treasury | Comprehensive | controlling | Total Equity/ | controlling | |||||||||||||||||||||||
Stock | Capital | Earnings | Stock | Income (Loss) | Interests | (Deficit) | Interest | |||||||||||||||||||||||
BALANCE January 1, 2011 | $ | 2.0 | $ | (775.6 | ) | $ | 474.0 | $ | (3.2 | ) | $ | (64.6 | ) | $ | 9.1 | $ | (358.3 | ) | $ | — | ||||||||||
Stock-based Compensation Awards | 23.7 | (0.1 | ) | 23.6 | ||||||||||||||||||||||||||
Treasury Stock Acquired | (54.1 | ) | (54.1 | ) | ||||||||||||||||||||||||||
Distributions to Noncontrolling Interests | (2.7 | ) |
(2.7 |
) |
||||||||||||||||||||||||||
Cash Dividends Declared | (106.4 | ) | (106.4 | ) | ||||||||||||||||||||||||||
Net Earnings | 278.2 | 5.6 | 283.8 | |||||||||||||||||||||||||||
Other Comprehensive Income | 29.4 | 0.2 | 29.6 | |||||||||||||||||||||||||||
BALANCE June 30, 2011 | $ | 2.0 | $ | (751.9 | ) | $ | 645.8 | $ | (57.4 | ) | $ | (35.2 | ) | $ | 12.2 | $ | (184.5 | ) | $ | — | ||||||||||
BALANCE January 1, 2012 | $ | 2.1 | $ | (728.4 | ) | $ | 770.0 | $ | (89.7 | ) | $ | (133.1 | ) | $ | 11.1 | $ | (168.0 | ) | $ | — | ||||||||||
Stock-based Compensation Awards | 33.0 | (14.8 | ) | 18.2 | ||||||||||||||||||||||||||
Treasury Stock Acquired | (44.0 | ) | (44.0 | ) | ||||||||||||||||||||||||||
Acquisition | — | 30.2 | ||||||||||||||||||||||||||||
Distributions to Noncontrolling Interests | (2.2 | ) | (2.2 | ) | ||||||||||||||||||||||||||
Cash Dividends Declared | (122.6 | ) | (122.6 | ) | ||||||||||||||||||||||||||
Net Earnings | 330.0 | 10.3 | 340.3 | 0.6 | ||||||||||||||||||||||||||
Redeemable Noncontrolling Interest Accretion | (1.5 | ) | (1.5 | ) | 1.5 | |||||||||||||||||||||||||
Other Comprehensive Income | (18.4 | ) | (18.4 | ) | ||||||||||||||||||||||||||
BALANCE June 30, 2012 | $ | 2.1 | $ | (695.4 | ) | $ | 975.9 | $ | (148.5 | ) | $ | (151.5 | ) | $ | 19.2 | $ | 1.8 | $ | 32.3 |
MEAD JOHNSON NUTRITION COMPANY | ||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Dollars in millions) | ||||||||
(UNAUDITED) | ||||||||
Six Months Ended June 30, | ||||||||
2012 | 2011 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net Earnings | $ | 340.9 | $ | 283.8 | ||||
Adjustments to Reconcile Net Earnings to Net Cash Provided by Operating Activities: | ||||||||
Depreciation and Amortization | 37.6 | 37.6 | ||||||
Other | 29.9 | 21.5 | ||||||
Changes in Assets and Liabilities | (137.6 | ) | (48.8 | ) | ||||
Pension and Other Post Retirement Benefits Contributions | (3.6 | ) | (2.4 | ) | ||||
Net Cash Provided by Operating Activities | 267.2 | 291.7 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Payments for Capital Expenditures | (50.0 | ) | (49.5 | ) | ||||
Proceeds from Sale of Property, Plant and Equipment | 0.8 | 0.6 | ||||||
Acquisition | (106.1 | ) | — | |||||
Net Cash Used in Investing Activities | (155.3 | ) | (48.9 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Proceeds from Short-term Borrowings | 180.0 | 0.9 | ||||||
Repayments of Short-term Borrowings | (180.0 | ) | (2.1 | ) | ||||
Payments of Dividends | (114.3 | ) | (99.3 | ) | ||||
Stock-based-compensation-related Proceeds and Excess Tax Benefits | 18.8 | 2.5 | ||||||
Purchases of Treasury Stock | (58.8 | ) | (55.4 | ) | ||||
Distributions to Noncontrolling Interests | (2.2 | ) | (2.7 | ) | ||||
Net Cash Used in Financing Activities | (156.5 | ) | (156.1 | ) | ||||
Effects of Changes in Exchange Rates on Cash and Cash Equivalents | (8.4 | ) | 21.4 | |||||
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS | (53.0 | ) | 108.1 | |||||
CASH AND CASH EQUIVALENTS: | ||||||||
Beginning of Period | 840.3 | 595.6 | ||||||
End of Period | $ | 787.3 | $ | 703.7 |
MEAD JOHNSON NUTRITION COMPANY | ||||||||||||||||||||
SUPPLEMENTAL FINANCIAL INFORMATION | ||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||||
% Change Due to | ||||||||||||||||||||
Three Months Ended June 30, | Foreign | |||||||||||||||||||
2012 | 2011 | % Change | Volume | Price | Exchange | |||||||||||||||
Net Sales | ||||||||||||||||||||
Asia/Latin America | $ | 695.2 | $ | 611.6 | 14 | % | 7 | % | 9 | % | -2 | % | ||||||||
North America/Europe | 317.1 | 320.4 | -1 | % | -5 | % | 5 | % | -1 | % | ||||||||||
Total | $ | 1,012.3 | $ | 932.0 | 9 | % | 3 | % | 8 | % | -2 | % | ||||||||
Earnings Before Interest and Income Taxes | ||||||||||||||||||||
Asia/Latin America | $ | 237.5 | $ | 209.8 | 13 | % | ||||||||||||||
North America/Europe | 74.6 | 86.4 | -14 | % | ||||||||||||||||
Corporate and Other | (63.8 | ) | (92.5 | ) | 31 | % | ||||||||||||||
Total | $ | 248.3 | $ | 203.7 | 22 | % |
|
||||||||||||||||||||
% Change Due to | ||||||||||||||||||||
Six Months Ended June 30, | Foreign | |||||||||||||||||||
2012 | 2011 | % Change | Volume | Price | Exchange | |||||||||||||||
Net Sales | ||||||||||||||||||||
Asia/Latin America | $ | 1,396.5 | $ | 1,188.5 | 18 | % | 11 | % | 7 | % | 0 | % | ||||||||
North America/Europe | 602.4 | 643.3 | -6 | % | -9 | % | 4 | % | -1 | % | ||||||||||
Total | $ | 1,998.9 | $ | 1,831.8 | 9 | % | 4 | % | 6 | % | -1 | % | ||||||||
Earnings Before Interest and Income Taxes | ||||||||||||||||||||
Asia/Latin America | $ | 516.5 | $ | 426.6 | 21 | % | ||||||||||||||
North America/Europe | 108.3 | 179.3 | -40 | % | ||||||||||||||||
Corporate and Other | (127.7 | ) | (179.6 | ) | 29 | % | ||||||||||||||
Total | $ | 497.1 | $ | 426.3 | 17 | % |
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) | |||||||||||||||||||||||
FOR THE THREE MONTHS ENDED JUNE 30, 2012 and 2011 | |||||||||||||||||||||||
Earnings Before Interest | Net Earnings Attributable | Earnings per Common | |||||||||||||||||||||
and Income Taxes | to Shareholders | Share - Diluted | |||||||||||||||||||||
2012 | 2011 | 2012 | 2011 | 2012 | 2011 | ||||||||||||||||||
GAAP results | $ | 248.3 | $ | 203.7 | $ | 165.8 | $ | 132.1 | $ | 0.81 | $ | 0.64 | |||||||||||
Specified Items:(1) | |||||||||||||||||||||||
IT and other separation costs(2) | 5.4 | 24.7 | |||||||||||||||||||||
Severance and other costs(3) | 0.5 | (0.2 | ) | ||||||||||||||||||||
Legal, settlements and related costs(2,3) | 1.4 | 0.3 | |||||||||||||||||||||
Specified Items before income taxes | 7.3 | 24.8 | 7.3 | 24.8 | 0.03 | 0.12 | |||||||||||||||||
Income tax impact on items above | (1.9 | ) | (8.2 | ) | (0.01 | ) | (0.04 | ) | |||||||||||||||
Non-GAAP results | $ | 255.6 | $ | 228.5 | $ | 171.2 | $ | 148.7 | 0.83 | 0.72 | |||||||||||||
(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 |
FOR THE SIX MONTHS ENDED JUNE 30, 2012 and 2011 | ||||||||||||||||||||||
Earnings Before Interest | Net Earnings Attributable | Earnings per Common | ||||||||||||||||||||
and Income Taxes | to Shareholders | Share - Diluted | ||||||||||||||||||||
2012 | 2011 | 2012 | 2011 | 2012 | 2011 | |||||||||||||||||
GAAP results | $ | 497.1 | $ | 426.3 | $ | 330.0 | $ | 278.2 | $ | 1.61 | $ | 1.35 | ||||||||||
Specified Items:(1) | ||||||||||||||||||||||
IT and other separation costs(2) | 7.1 | 40.1 | ||||||||||||||||||||
Severance and other costs(3) | 1.5 | - | ||||||||||||||||||||
Legal, settlements and related costs(2,3) | 2.9 | 1.2 | ||||||||||||||||||||
Specified Items before income taxes | 11.5 | 41.3 | 11.5 | 41.3 | 0.05 | 0.20 | ||||||||||||||||
Income tax impact on items above | (2.9 | ) | (14.0 | ) | (0.01 | ) | (0.07 | ) | ||||||||||||||
Non-GAAP results | $ | 508.6 | $ | 467.6 | $ | 338.6 | $ | 305.5 | $ | 1.65 | $ | 1.48 | ||||||||||
(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
Investors: Kathy MacDonald,
(847) 832-2182, kathy.macdonald@mjn.com
Media:
Christopher Perille, (847) 832-2178, chris.perille@mjn.com
7/26/2012