Mead Johnson Nutrition Delivers Earnings Per Share Above Guidance for Fourth Quarter and Full Year 2015; Provides 2016 Guidance
“I am pleased with the sequential improvements in our underlying
business since our last earnings call, despite a challenging operating
environment across many of the emerging markets," said Kasper Jakobsen,
Chief Executive Officer. "Our two biggest businesses in
Highlights are as follows:
(1) Fourth quarter sales were down 1% from the third
quarter on a reported basis, and flat on a constant dollar basis,
compared to the third quarter. Excluding the impact of sales in
(2) Constant dollar figures exclude the impact of changes in foreign currency exchange rates and are reconciled in the tables in the body of this earnings release. Non-GAAP or as adjusted results exclude Specified Items. For a description of Specified Items, and a reconciliation of non-GAAP to GAAP, see the schedules titled “Reconciliation of Non-GAAP to GAAP Results.”
Fourth Quarter 2015 | |||||||||||||||||||||||||||||
(Dollars in Millions) | |||||||||||||||||||||||||||||
(UNAUDITED) | |||||||||||||||||||||||||||||
Three Months Ended December 31, | % Change | % Change Due to | |||||||||||||||||||||||||||
% of | % of | Constant | Foreign | ||||||||||||||||||||||||||
Net Sales | 2015 | Total | 2014 | Total | Reported | Dollar | Volume | Price/Mix | Exchange | ||||||||||||||||||||
Asia | $ | 468.0 | 48 | % | $ | 548.6 | 50 | % | (15 | )% | (10 | )% | (7 | )% | (3 | )% | (5 | )% | |||||||||||
Latin America | 169.8 | 18 | % | 207.8 | 19 | % | (18 | )% | (4 | )% | (9 | )% | 5 | % | (14 | )% | |||||||||||||
North America/Europe | 329.2 | 34 | % | 337.8 | 31 | % | (3 | )% | — | % | 1 | % | (1 | )% | (3 | )% | |||||||||||||
Net Sales | $ | 967.0 | 100 | % | $ | 1,094.2 | 100 | % | (12 | )% | (6 | )% | (5 | )% | (1 | )% | (6 | )% | |||||||||||
Three Months Ended December 31, | |||||||||||||||||
Earnings Before Interest and Income Taxes (EBIT) | 2015 |
% of |
2014 |
% of |
% |
||||||||||||
Asia | $ | 139.9 | 30 | % | $ | 195.3 | 36 | % | (28 | )% | |||||||
Latin America | 34.2 | 20 | % | 46.4 | 22 | % | (26 | )% | |||||||||
North America/Europe | 96.9 | 29 | % | 90.1 | 27 | % | 8 | % | |||||||||
Corporate and Other | (75.2 | ) | (122.2 | ) | 38 | % | |||||||||||
EBIT as reported | 195.8 | 20 | % | 209.6 | 19 | % | (7 | )% | |||||||||
Specified Items | 23.8 | 42.4 | |||||||||||||||
Impact of F/X | 25.5 | — | |||||||||||||||
EBIT as adjusted | $ | 245.1 | $ | 252.0 | (3 | )% | |||||||||||
Full Year 2015 | ||||||||||||||||||||||||||||
(Dollars in Millions) | ||||||||||||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||||||||||||
Years Ended December 31, |
% Change | % Change Due to | ||||||||||||||||||||||||||
% of | % of | Constant | Foreign | |||||||||||||||||||||||||
Net Sales | 2015 | Total | 2014 | Total | Reported | Dollar | Volume | Price/Mix | Exchange | |||||||||||||||||||
Asia | $ | 2,039.0 | 50% | $ | 2,278.4 | 52 | % | (11 | )% | (8 | )% | (6 | )% | (2 | )% | (3 | )% | |||||||||||
Latin America | 757.1 | 19% | 867.5 | 20 | % | (13 | )% | 3 | % | (4 | )% | 7 | % | (16 | )% | |||||||||||||
North America/Europe | 1,275.2 | 31% | 1,263.4 | 28 | % | 1 | % | 4 | % | 1 | % | 3 | % | (3 | )% | |||||||||||||
Net Sales | $ | 4,071.3 | 100% | $ | 4,409.3 | 100 | % | (8 | )% | (2 | )% | (3 | )% | 1 | % | (6 | )% | |||||||||||
Years Ended December 31, |
|||||||||||||||||
Earnings Before Interest and Income Taxes (EBIT) | 2015 |
% of |
2014 |
% of |
% |
||||||||||||
Asia | $ | 682.0 | 33 | % | $ | 818.7 | 36 | % | (17 | )% | |||||||
Latin America | 175.2 | 23 | % | 199.0 | 23 | % | (12 | )% | |||||||||
North America/Europe | 361.8 | 28 | % | 291.0 | 23 | % | 24 | % | |||||||||
Corporate and Other | (282.8 | ) | (320.4 | ) | 12 | % | |||||||||||
EBIT as reported | 936.2 | 23 | % | 988.3 | 22 | % | (5 | )% | |||||||||
Specified Items | 44.6 | 63.3 | |||||||||||||||
Impact of F/X | 67.5 | — | |||||||||||||||
EBIT as adjusted | $ | 1,048.3 | $ | 1,051.6 | — | % | |||||||||||
Cash Flow Items and Share Repurchases
Outlook for 2016
The company announced full year guidance for 2016. It expects full year constant dollar sales to be in a range of 0% to 2% above 2015 and non-GAAP EPS in the range of $3.48 to $3.60 based on current exchange rates.
“As discussed during our Investor Day in October of last year we view
2016 as a year of transition as we invest heavily in reshaping our
portfolio in
The company expects to incur charges approximating $25 to $30 million
associated with the Fuel for Growth program in 2016. Specified Items
including charges related to Fuel for Growth are expected to be
approximately $0.12 per share. Therefore GAAP EPS is expected to be in
the range of $3.36 to $3.48, excluding mark-to-market pension
adjustments which cannot be estimated. EPS guidance includes an
estimated adverse impact of current exchange rates as of
Conference Call Scheduled
Mead Johnson 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
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 | ||||||||||||||||
CONSOLIDATED STATEMENTS OF EARNINGS | ||||||||||||||||
(Dollars and shares in millions, except per share data) | ||||||||||||||||
(UNAUDITED) | ||||||||||||||||
Three Months Ended |
Years Ended |
|||||||||||||||
December 31, | December 31, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
NET SALES | $ | 967.0 | $ | 1,094.2 | $ | 4,071.3 | $ | 4,409.3 | ||||||||
Cost of Products Sold | 358.6 | 430.2 | 1,455.3 | 1,700.6 | ||||||||||||
GROSS PROFIT | 608.4 | 664.0 | 2,616.0 | 2,708.7 | ||||||||||||
Operating Expenses: | ||||||||||||||||
Selling, General and Administrative | 211.1 | 263.5 | 890.6 | 978.9 | ||||||||||||
Advertising and Promotion | 151.1 | 149.5 | 641.8 | 638.7 | ||||||||||||
Research and Development | 28.5 | 32.6 | 108.4 | 115.1 | ||||||||||||
Other (Income)/Expenses–net | 21.9 | 8.8 | 39.0 | (12.3 | ) | |||||||||||
EARNINGS BEFORE INTEREST AND INCOME TAXES | 195.8 | 209.6 | 936.2 | 988.3 | ||||||||||||
Interest Expense—net | 22.5 | 14.3 | 65.0 | 60.3 | ||||||||||||
EARNINGS BEFORE INCOME TAXES | 173.3 | 195.3 | 871.2 | 928.0 | ||||||||||||
Provision for Income Taxes | 42.3 | 38.7 | 215.9 | 199.2 | ||||||||||||
NET EARNINGS | 131.0 | 156.6 | 655.3 | 728.8 | ||||||||||||
Less Net Earnings/(Loss) Attributable to Noncontrolling Interests | 3.0 | (1.8 | ) | 1.8 | 9.0 | |||||||||||
NET EARNINGS ATTRIBUTABLE TO SHAREHOLDERS | $ | 128.0 | $ | 158.4 | $ | 653.5 | $ | 719.8 | ||||||||
Earnings per Share(a)– Basic | ||||||||||||||||
Net Earnings Attributable to Shareholders | $ | 0.67 | $ | 0.78 | $ | 3.28 | $ | 3.55 | ||||||||
Earnings per Share(a)– Diluted | ||||||||||||||||
Net Earnings Attributable to Shareholders | $ | 0.67 | $ | 0.78 | $ | 3.27 | $ | 3.54 | ||||||||
Weighted Average Shares–Diluted | 189.8 | 202.9 | 199.4 | 202.7 | ||||||||||||
Dividends Declared per Share | $ | 0.41 | $ | 0.38 | $ | 1.65 | $ | 1.50 | ||||||||
(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.
When aggregated, EPS for the four quarters of 2015 are not equal to the full year EPS figure due to the variability of quarterly earnings and the timing of share repurchases.
MEAD JOHNSON NUTRITION COMPANY | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
(Dollars and shares in millions, except per share data) | ||||||||
(UNAUDITED) | ||||||||
December 31, 2015 | December 31, 2014 | |||||||
ASSETS | ||||||||
CURRENT ASSETS: | ||||||||
Cash and Cash Equivalents | $ | 1,701.4 | $ | 1,297.7 | ||||
Receivables—net of allowances of $5.4 and $9.6, respectively | 342.5 | 387.8 | ||||||
Inventories | 484.9 | 555.5 | ||||||
Income Taxes Receivable | 13.2 | 7.7 | ||||||
Prepaid Expenses and Other Assets | 60.4 | 82.6 | ||||||
Total Current Assets | 2,602.4 | 2,331.3 | ||||||
Property, Plant, and Equipment—net | 964.0 | 912.7 | ||||||
Goodwill | 126.0 | 162.7 | ||||||
Other Intangible Assets—net | 54.9 | 75.4 | ||||||
Deferred Income Taxes—net of valuation allowance | 118.5 | 150.4 | ||||||
Other Assets | 132.3 | 131.3 | ||||||
TOTAL | $ | 3,998.1 | $ | 3,763.8 | ||||
LIABILITIES AND EQUITY | ||||||||
CURRENT LIABILITIES: | ||||||||
Short-term Borrowings | $ | 3.0 | $ | 4.1 | ||||
Accounts Payable | 481.5 | 512.3 | ||||||
Dividends Payable | 77.8 | 76.6 | ||||||
Accrued Expenses | 213.0 | 203.7 | ||||||
Accrued Rebates and Returns | 376.8 | 329.1 | ||||||
Deferred Income—current | 35.5 | 34.3 | ||||||
Income Taxes Payable | 65.7 | 45.2 | ||||||
Total Current Liabilities | 1,253.3 | 1,205.3 | ||||||
Long-Term Debt | 2,981.0 | 1,492.8 | ||||||
Deferred Income Taxes—noncurrent | 8.7 | 12.0 | ||||||
Pension and Other Post-employment Liabilities | 132.4 | 211.1 | ||||||
Other Liabilities - noncurrent | 215.2 | 192.8 | ||||||
Total Liabilities | 4,590.6 | 3,114.0 | ||||||
COMMITMENTS AND CONTINGENCIES | ||||||||
REDEEMABLE NONCONTROLLING INTEREST | — | 66.0 | ||||||
EQUITY | ||||||||
Shareholders’ Equity | ||||||||
Common Stock, $0.01 par value: 3,000 authorized, 191.4 and 207.2 issued, respectively | 1.9 | 2.1 | ||||||
Additional Paid-in/(Distributed) Capital | (564.2 | ) | (641.3 | ) | ||||
Retained Earnings | 640.4 | 1,775.0 | ||||||
Treasury Stock—at cost | (362.6 | ) | (362.6 | ) | ||||
Accumulated Other Comprehensive Loss | (347.8 | ) | (198.9 | ) | ||||
Total Shareholders’ Equity/(Deficit) | (632.3 | ) | 574.3 | |||||
Noncontrolling Interests | 39.8 | 9.5 | ||||||
Total Equity/(Deficit) | (592.5 | ) | 583.8 | |||||
TOTAL | $ | 3,998.1 | $ | 3,763.8 |
MEAD JOHNSON NUTRITION COMPANY | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Dollars in millions) | ||||||||
(UNAUDITED) | ||||||||
Years Ended December 31, |
||||||||
2015 | 2014 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net Earnings | $ | 655.3 | $ | 728.8 | ||||
Adjustments to Reconcile Net Earnings to Net Cash Provided by Operating Activities: | ||||||||
Depreciation and Amortization | 99.1 | 91.6 | ||||||
Other | 66.5 | 77.2 | ||||||
Changes in Assets and Liabilities | 168.4 | (54.0 | ) | |||||
Payments for Settlement of Interest Rate Forward Swaps | — | (45.0 | ) | |||||
Pension and Other Post-employment Benefit Contributions | (90.1 | ) | (5.2 | ) | ||||
Net Cash Provided by Operating Activities | 899.2 | 793.4 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Payments for Capital Expenditures | (173.7 | ) | (186.6 | ) | ||||
Proceeds from Sale of Property, Plant and Equipment | 0.5 | 0.2 | ||||||
Proceeds from/(Investment in) Other Companies | — | 4.0 | ||||||
Net Cash Used in Investing Activities | (173.2 | ) | (182.4 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Proceeds from Short-term Borrowings | 1,003.0 | 3.2 | ||||||
Repayments of Short-term Borrowings | (1,002.9 | ) | (0.6 | ) | ||||
Proceeds from Issuance of Long-term Notes, net of original issue discounts and expenses paid | 1,499.0 | 492.0 | ||||||
Repayments of Notes Payable | — | (500.0 | ) | |||||
Proceeds from Long-term Revolver Borrowings, net of original issue discount and expenses paid | 446.0 | — | ||||||
Repayment of Long-term Revolver Borrowings | (446.0 | ) | — | |||||
Payments of Dividends | (326.0 | ) | (296.6 | ) | ||||
Stock-based-compensation-related Proceeds and Excess Tax Benefits | 25.4 | 46.2 | ||||||
Stock-based Compensation Tax Withholdings | (11.4 | ) | (7.9 | ) | ||||
Payments for Repurchase of Common Stock | (1,437.0 | ) | (54.1 | ) | ||||
Purchase of Redeemable Shares | (24.2 | ) | — | |||||
Purchase of Trading Securities | (16.2 | ) | — | |||||
Sale of Trading Securities | 21.7 | — | ||||||
Distributions to Noncontrolling Interests | (6.9 | ) | (7.7 | ) | ||||
Net Cash Used in Financing Activities | (275.5 | ) | (325.5 | ) | ||||
Effects of Changes in Exchange Rates on Cash and Cash Equivalents | (46.8 | ) | (38.6 | ) | ||||
NET INCREASE IN CASH AND CASH EQUIVALENTS | 403.7 | 246.9 | ||||||
CASH AND CASH EQUIVALENTS: | ||||||||
Beginning of Period | 1,297.7 | 1,050.8 | ||||||
End of Period | $ | 1,701.4 | $ | 1,297.7 |
MEAD JOHNSON NUTRITION COMPANY |
RECONCILIATION OF NON-GAAP TO GAAP RESULTS |
(Dollars in millions, except per share data) |
(UNAUDITED) |
This news release contains non-GAAP financial measures, which may include non-GAAP net sales, gross profit, certain components of operating expenses, 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 and, at times, the impact of foreign exchange. 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 and ability to compare the company’s performance to that of its peer companies. 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 and appear elsewhere in this presentation.
Three Months Ended December 31, 2015 | Three Months Ended December 31, 2014 | ||||||||||||||||||||||||||||||||||
Specified Items (a) | Specified Items (a) | ||||||||||||||||||||||||||||||||||
Mark-to- | Fuel | Mark-to- | |||||||||||||||||||||||||||||||||
As | Market | For | All | As | As | Market | All | As | |||||||||||||||||||||||||||
Reported | Pension | Growth |
Other(b) |
Adjusted | Reported | Pension |
Other(b) |
Adjusted | |||||||||||||||||||||||||||
NET SALES | $ | 967.0 | $ | — | $ | — | $ | — | $ | 967.0 | $1,094.2 | $ | — | $ | — | $ | 1,094.2 | ||||||||||||||||||
Cost of Products Sold | 358.6 | 0.4 | (10.3 | ) | — | 348.7 | 430.2 | (13.4 | ) | — | 416.8 | ||||||||||||||||||||||||
GROSS PROFIT | 608.4 | (0.4 | ) | 10.3 | — | 618.3 | 664.0 | 13.4 | — | 677.4 | |||||||||||||||||||||||||
GROSS MARGIN % | 62.9 | % | (0.1 | )% | 1.0 | % | — | % | 63.9 | % | 60.7 | % | 1.2 | % | — | % | 61.9 | % | |||||||||||||||||
Operating Expenses: | |||||||||||||||||||||||||||||||||||
Selling, General and Administrative | 211.1 | 1.1 | (0.4 | ) | (0.1 | ) | 211.7 | 263.5 | (23.1 | ) | (0.7 | ) | 239.7 | ||||||||||||||||||||||
Advertising and Promotion | 151.1 | — | — | — | 151.1 | 149.5 | — | — | 149.5 | ||||||||||||||||||||||||||
Research and Development | 28.5 | 0.2 | — | — | 28.7 | 32.6 | (4.0 | ) | — | 28.6 | |||||||||||||||||||||||||
Other (Income)/Expenses – net | 21.9 | — | (14.4 | ) | (0.3 | ) | 7.2 | 8.8 | — | (1.2 | ) | 7.6 | |||||||||||||||||||||||
EARNINGS BEFORE INTEREST AND INCOME TAXES | 195.8 | (1.7 | ) | 25.1 | 0.4 | 219.6 | 209.6 | 40.5 | 1.9 | 252.0 | |||||||||||||||||||||||||
EBIT as a % of Sales | 20.2 | % | (0.2 | )% | 2.6 | % | — | % | 22.7 | % | 19.2 | % | 3.7 | % | 0.2 | % | 23.0 | % | |||||||||||||||||
Interest Expense – net | 22.5 | — | — | — | 22.5 | 14.3 | — | — | 14.3 | ||||||||||||||||||||||||||
EARNINGS BEFORE INCOME TAXES | 173.3 | (1.7 | ) | 25.1 | 0.4 | 197.1 | 195.3 | 40.5 | 1.9 | 237.7 | |||||||||||||||||||||||||
Provision for Income Taxes | 42.3 | (0.6 | ) | 4.8 | (0.2 | ) | 46.3 | 38.7 | 14.3 | 0.3 | 53.3 | ||||||||||||||||||||||||
Effective Tax Rate | 24.4 | % | (0.1 | )% | (0.7 | )% | (0.1 | )% | 23.5 | % | 19.8 | % | 2.7 | % | (0.1 | )% | 22.4 | % | |||||||||||||||||
NET EARNINGS | 131.0 | (1.1 | ) | 20.3 | 0.6 | 150.8 | 156.6 | 26.2 | 1.6 | 184.4 | |||||||||||||||||||||||||
Less Net Earnings/(Loss) Attributable to Noncontrolling Interests | 3.0 | — | — | — | 3.0 | (1.8 | ) | — | — | (1.8 | ) | ||||||||||||||||||||||||
NET EARNINGS ATTRIBUTABLE TO SHAREHOLDERS | $ | 128.0 | $ | (1.1 | ) | $ | 20.3 | $ | 0.6 | $ | 147.8 | $158.4 | $ | 26.2 | $ | 1.6 | $ | 186.2 | |||||||||||||||||
Earnings per Share– Diluted | |||||||||||||||||||||||||||||||||||
Net Earnings Attributable to Shareholders | $ | 0.67 | $ | (0.01 | ) | $ | 0.11 | $ | — | $ | 0.78 | $0.78 | $ | 0.13 | $ | 0.01 | $ | 0.92 |
Reconciliation of Reported Quarterly Sequential Sales Growth | ||||
Third Quarter 2015 Sales | $ | 977.5 | ||
Fourth Quarter 2015 Sales | 967.0 | |||
Percentage Change in Reported Sales | (1 | )% | ||
Less: Impact of Foreign Exchange | (1 | )% | ||
Less: Impact of Venezuela | (1 | )% | ||
Percentage Change in Sales in Constant Dollars Excluding the Impact of Venezuela | 1 | % | ||
Certain figures do not sum due to rounding.
When aggregated, EPS for the four quarters of 2015 are not equal to the full year EPS figure due to the variability of quarterly earnings and the timing of share repurchases.
(a) All Specified Items are included in Corporate and Other.
(b) All Other include legal, settlement and related costs, severance and other expenses, and marketable securities.
MEAD JOHNSON NUTRITION COMPANY | ||||||||||||||||||||||||||||||||||||||||
RECONCILIATION OF NON-GAAP TO GAAP RESULTS | ||||||||||||||||||||||||||||||||||||||||
(Dollars in millions, except per share data) | ||||||||||||||||||||||||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2015 | Year Ended December 31, 2014 | |||||||||||||||||||||||||||||||||||||||
Specified Items (a) | Specified Items (a) | |||||||||||||||||||||||||||||||||||||||
Mark-to- | ||||||||||||||||||||||||||||||||||||||||
Market | ||||||||||||||||||||||||||||||||||||||||
Mark-to- | Fuel | and | ||||||||||||||||||||||||||||||||||||||
As | Market | Investigation | For | All | As | As | Other | All | As | |||||||||||||||||||||||||||||||
Reported | Pension | Settlement | Growth |
Other(b) |
Adjusted | Reported | Pension |
Other(b) |
Adjusted | |||||||||||||||||||||||||||||||
NET SALES | $ | 4,071.3 | — | — | — | — | 4,071.3 | 4,409.3 | 4,409.3 | |||||||||||||||||||||||||||||||
Cost of Products Sold | 1,455.3 | (3.0 | ) | — | (10.3 | ) | — | 1,442.0 | 1,700.6 | (19.1 | ) | — | 1,681.5 | |||||||||||||||||||||||||||
GROSS PROFIT | 2,616.0 | 3.0 | — | 10.3 | — | 2,629.3 | 2,708.7 | 19.1 | — | 2,727.8 | ||||||||||||||||||||||||||||||
GROSS MARGIN % | 64.3 | % | 0.1 | % | — | % | 1.0 | % | — | % | 64.6 | % | 61.4 | % | 0.4 | % | — | % | 61.9 | % | ||||||||||||||||||||
Operating Expenses: | ||||||||||||||||||||||||||||||||||||||||
Selling, General and Administrative | 890.6 | (4.4 | ) | — | (0.4 | ) | (2.0 | ) | 883.8 | 978.9 | (32.2 | ) | (13.8 | ) | 932.9 | |||||||||||||||||||||||||
Advertising and Promotion | 641.8 | — | — | — | — | 641.8 | 638.7 | — | — | 638.7 | ||||||||||||||||||||||||||||||
Research and Development | 108.4 | (0.8 | ) | — | — | — | 107.6 | 115.1 | (5.6 | ) | — | 109.5 | ||||||||||||||||||||||||||||
Other (Income)/Expenses – net | 39.0 | — | (12.0 | ) | (14.4 | ) | 2.7 | 15.3 | (12.3 | ) | 5.4 | 2.0 | (4.9 | ) | ||||||||||||||||||||||||||
EARNINGS BEFORE INTEREST AND INCOME TAXES | 936.2 | 8.2 | 12.0 | 25.1 | (0.7 | ) | 980.8 | 988.3 | 51.5 | 11.8 | 1,051.6 | |||||||||||||||||||||||||||||
EBIT as a % of Sales | 23.0 | % | 0.2 | % | 0.3 | % | 2.6 | % | — | % | 24.1 | % | 22.4 | % | 1.2 | % | 0.2 | % | 23.8 | % | ||||||||||||||||||||
Interest Expense – net | 65.0 | — | — | — | — | 65.0 | 60.3 | — | — | 60.3 | ||||||||||||||||||||||||||||||
EARNINGS BEFORE INCOME TAXES | 871.2 | 8.2 | 12.0 | 25.1 | (0.7 | ) | 915.8 | 928.0 | 51.5 | 11.8 | 991.3 | |||||||||||||||||||||||||||||
Provision for Income Taxes | 215.9 | 2.9 | 3.1 | 4.8 | 0.4 | 227.1 | 199.2 | 20.0 | 3.7 | 222.9 | ||||||||||||||||||||||||||||||
Effective Tax Rate | 24.8 | % | 0.1 | % | — | % | (0.2 | )% | 0.1 | % | 24.8 | % | 21.5 | % | 0.9 | % | 0.1 | % | 22.5 | % | ||||||||||||||||||||
NET EARNINGS | 655.3 | 5.3 | 8.9 | 20.3 | (1.1 | ) | 688.7 | 728.8 | 31.5 | 8.1 | 768.4 | |||||||||||||||||||||||||||||
Less Net Earnings/(Loss) Attributable to Noncontrolling Interests | 1.8 | — | — | — | — | 1.8 | 9.0 | — | — | 9.0 | ||||||||||||||||||||||||||||||
NET EARNINGS ATTRIBUTABLE TO SHAREHOLDERS | $ | 653.5 | $ | 5.3 | $ | 8.9 | $ | 20.3 | $ | (1.1 | ) | $ | 686.9 | $ | 719.8 | $ | 31.5 | $ | 8.1 | $ | 759.4 | |||||||||||||||||||
Earnings per Share– Diluted | ||||||||||||||||||||||||||||||||||||||||
Net Earnings Attributable to Shareholders | $ | 3.27 | $ | 0.03 | $ | 0.04 | $ | 0.11 | $ | (0.01 | ) | $ | 3.44 | $ | 3.54 | $ | 0.15 | $ | 0.05 | $ | 3.74 | |||||||||||||||||||
Certain figures do not sum due to rounding.
When aggregated, EPS for the four quarters of 2015 are not equal to the full year EPS figure due to the variability of quarterly earnings and the timing of share repurchases.
(a) All Specified Items are included in Corporate and Other.
(b) Specified Items include legal, settlement and related costs, severance and other expenses, and marketable securities.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160128005626/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
1/28/2016