Mead Johnson Nutrition Reports Third Quarter Earnings; Year to Date Constant Dollar Sales Up 7 Percent
“We are pleased with the strong growth we delivered in most of our
emerging markets during the third quarter,” said Chief Executive Officer
Stephen W. Golsby. “As detailed in our July earnings call, however, we
entered the third quarter with lower market share as well as
distributors carrying higher inventories in
Third Quarter Results
Net sales for the quarter ended
Gross margin was 61.2 percent, down from 61.6 percent in the third
quarter of 2011. The 40 basis point decline was attributed to higher
commodity costs and unfavorable manufacturing variances from lower
production volume in our
Operating expense increased from higher advertising and promotion investments to support new product launches. In addition, foreign currency balance sheet re-measurement impacts, reported in Other Expense/Income, were unfavorable with current quarter losses compared against significant gains reported in the prior year. General and Administrative expenses were lower due to the implementation of SAP across our global system, which was completed in 2011, and lower performance-based compensation expense.
The effective tax rate for the quarter was 16.3 percent compared to 22.6 percent a year ago. The lower effective tax rate was primarily attributable to changes in management’s assertion that certain current and prior years’ foreign earnings and profits are permanently invested abroad, favorable return-to-provision adjustments associated with the recent filing of our 2011 U.S. income tax return and changes in the geographic earnings mix.
Net earnings attributable to shareholders totaled $140.3 million, or $0.69 per diluted share, compared with $144.7 million, or $0.70 per diluted share, for the third quarter a year ago.
On a non-GAAP basis, which excludes specified items, net earnings attributable to shareholders totaled $144.8 million, or $0.71 per diluted share, for the third quarter of 2012, compared with $161.0 million, or $0.78 per diluted share, for the same quarter a year ago.
Third Quarter Segment Results
Sales in the
The
Corporate and Other expenses decreased from lower IT and separation costs, lower performance-based compensation expense and a gain from the sale of non-core intangible assets. These factors were partially offset by the net balance sheet re-measurement losses and additional U.S. pension settlement expense, which was first triggered in the second quarter of 2012. The U.S. pension settlement expenses were not triggered in 2011 until the fourth quarter.
Nine-Month Results
Net sales for the nine months ended
Gross margin was down 140 basis points versus the first nine months of
2012 from higher dairy and other commodity costs, mainly in the
EBIT for the first nine months of 2012 totaled $680.3 million, up from $628.0 million a year earlier. The EBIT increase was driven by sales growth, lower expenses due to completion of the SAP implementation in 2011 and the elimination of duplicate costs from the overlap in shared service providers in the prior year. These factors were partially offset by lower gross margins, higher demand-generation investments and earlier recognition of U.S. pension settlement expense.
The effective tax rate for the nine months ended
Net earnings attributable to shareholders for the first nine months of 2012 totaled $470.3 million, or $2.29 per diluted share, compared with $422.9 million, or $2.06 per diluted share, for the prior-year period.
On a non-GAAP basis, which excludes specified items, net earnings attributable to shareholders totaled $483.4 million, or $2.36 per diluted share, for the first three quarters of 2012, compared with $466.5 million, or $2.27 per diluted share, for the same period a year ago.
Nine-Month Segment Results
Sales in the
The
Corporate and Other expenses decreased from lower IT and separation costs, lower performance-based compensation expense and the elimination of duplicate costs from the overlap in shared services providers incurred in the prior year during the SAP implementation project. These factors were partially offset by the earlier recognition of higher pension settlement expense, which was not incurred until the fourth quarter in 2011.
Outlook for 2012
“For the full year, we anticipate annual constant dollar sales to grow
in the range of six to seven percent compared to the prior year,” Mr.
Golsby said. “While our
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
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 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.
MEAD JOHNSON NUTRITION COMPANY | ||||||||||||||
CONSOLIDATED STATEMENTS OF EARNINGS | ||||||||||||||
(Dollars in millions, except per share data) | ||||||||||||||
(UNAUDITED) | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||
NET SALES | $ | 921.3 | $ | 933.9 | $ | 2,920.2 | $ | 2,765.7 | ||||||
Cost of Products Sold | 357.5 | 358.3 | 1,103.3 | 1,007.4 | ||||||||||
GROSS PROFIT | 563.8 | 575.6 | 1,816.9 | 1,758.3 | ||||||||||
Expenses: | ||||||||||||||
Selling, General and Administrative | 210.7 | 229.5 | 642.2 | 689.5 | ||||||||||
Advertising and Promotion | 138.8 | 129.8 | 413.3 | 373.0 | ||||||||||
Research and Development | 21.5 | 22.9 | 67.6 | 64.4 | ||||||||||
Other Expenses/(Income) – net | 9.6 | (8.3 | ) | 13.5 | 3.4 | |||||||||
EARNINGS BEFORE INTEREST AND INCOME TAXES | 183.2 | 201.7 | 680.3 | 628.0 | ||||||||||
Interest Expense – net | 16.9 | 13.1 | 49.0 | 38.4 | ||||||||||
EARNINGS BEFORE INCOME TAXES | 166.3 | 188.6 | 631.3 | 589.6 | ||||||||||
Provision for Income Taxes | 27.1 | 42.7 | 151.2 | 159.9 | ||||||||||
NET EARNINGS | 139.2 | 145.9 | 480.1 | 429.7 | ||||||||||
Less Net Earnings/(Loss) Attributable to Noncontrolling Interests | (1.1 | ) | 1.2 | 9.8 | 6.8 | |||||||||
NET EARNINGS ATTRIBUTABLE TO SHAREHOLDERS | $ | 140.3 | $ | 144.7 | $ | 470.3 | $ | 422.9 | ||||||
Earnings per Share – Basic | ||||||||||||||
Net Earnings Attributable to Shareholders | $ | 0.69 | $ | 0.71 | $ | 2.30 | $ | 2.06 | ||||||
Earnings per Share – Diluted | ||||||||||||||
Net Earnings Attributable to Shareholders | $ | 0.69 | $ | 0.70 | $ | 2.29 | $ | 2.06 | ||||||
Dividends Declared per Share | $ | 0.30 | $ | 0.26 | $ | 0.90 | $ | 0.78 |
MEAD JOHNSON NUTRITION COMPANY | ||||||||||||||||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||||||||||||||
(Dollars in millions) | ||||||||||||||||
(UNAUDITED) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
NET EARNINGS | $ | 139.2 | $ | 145.9 | $ | 480.1 | $ | 429.7 | ||||||||
OTHER COMPREHENSIVE INCOME/(LOSS) | ||||||||||||||||
Foreign Currency Translation Adjustments | ||||||||||||||||
Translation Adjustments | 25.6 | (50.6 | ) | (4.2 | ) | (13.8 | ) | |||||||||
Tax Benefit/(Expense) | (17.5 | ) | 9.3 | (12.2 | ) | 4.0 | ||||||||||
Deferred Gains/(Losses) on Derivatives Qualifying as Hedges | ||||||||||||||||
Deferred Gains/(Losses) on Derivatives Qualifying as Hedges for the Period |
(5.4 | ) | 11.7 | (9.5 | ) | 5.9 | ||||||||||
Reclassification Adjustment for (Gains)/Losses Included in Net Earnings |
(0.4 | ) | 2.0 | (0.9 | ) | 5.4 | ||||||||||
Tax Benefit/(Expense) | 1.7 | (4.0 | ) | 3.1 | (3.3 | ) | ||||||||||
Pension and Other Post-Retirement Benefits | ||||||||||||||||
Deferred Gains on Pension and Other Post-Retirement Benefits |
— | 0.2 | — | 0.2 | ||||||||||||
Reclassification Adjustment for (Gains)/Losses Included in Net Earnings |
5.9 | 1.1 | 18.4 | 3.6 | ||||||||||||
Tax Benefit/(Expense) | (2.2 | ) | (0.6 | ) | (5.4 | ) | (3.3 | ) | ||||||||
OTHER COMPREHENSIVE INCOME/(LOSS) | 7.7 | (30.9 | ) | (10.7 | ) | (1.3 | ) | |||||||||
COMPREHENSIVE INCOME | $ | 146.9 | $ | 115.0 | $ | 469.4 | $ | 428.4 | ||||||||
Less Comprehensive Income/(Loss) Attributable to Noncontrolling Interests | (1.1 | ) | 1.2 | 9.8 | 7.0 | |||||||||||
COMPREHENSIVE INCOME ATTRIBUTABLE TO SHAREHOLDERS | $ | 148.0 | $ | 113.8 | $ | 459.6 | $ | 421.4 |
MEAD JOHNSON NUTRITION COMPANY | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
(Dollars and shares in millions, except per share data) | ||||||||
(UNAUDITED) | ||||||||
September 30, | December 31, | |||||||
2012 | 2011 | |||||||
ASSETS | ||||||||
CURRENT ASSETS: | ||||||||
Cash and Cash Equivalents | $ | 958.4 | $ | 840.3 | ||||
Receivables – net of allowances of $6.7 and $6.3, respectively | 380.2 | 352.6 | ||||||
Inventories | 472.9 | 534.9 | ||||||
Deferred Income Taxes – net of valuation allowance | 116.9 | 118.5 | ||||||
Income Taxes Receivable | 8.4 | 3.3 | ||||||
Prepaid Expenses and Other Assets | 49.5 | 40.1 | ||||||
Total Current Assets | 1,986.3 | 1,889.7 | ||||||
Property, Plant, and Equipment – net | 608.6 | 576.1 | ||||||
Goodwill | 277.6 | 117.5 | ||||||
Other Intangible Assets – net | 136.3 | 91.6 | ||||||
Deferred Income Taxes – net of valuation allowance | 21.0 | 16.5 | ||||||
Other Assets | 115.6 | 75.4 | ||||||
TOTAL | $ | 3,145.4 | $ | 2,766.8 | ||||
LIABILITIES AND EQUITY/(DEFICIT) | ||||||||
CURRENT LIABILITIES: | ||||||||
Short-term Borrowings | $ | 155.2 | $ | — | ||||
Accounts Payable | 437.0 | 488.1 | ||||||
Dividends Payable | 61.5 | 53.3 | ||||||
Note Payable | 53.9 | — | ||||||
Accrued Expenses | 224.5 | 229.0 | ||||||
Accrued Rebates and Returns | 319.8 | 300.1 | ||||||
Deferred Income – current | 9.5 | 47.0 | ||||||
Income Taxes – payable and deferred | 32.5 | 82.6 | ||||||
Total Current Liabilities | 1,293.9 | 1,200.1 | ||||||
Long-Term Debt | 1,525.4 | 1,531.9 | ||||||
Deferred Income Taxes – noncurrent | 29.8 | 5.2 | ||||||
Pension, Post-Retirement and Post Employment Liabilities | 138.0 | 157.2 | ||||||
Other Liabilities | 81.6 | 40.4 | ||||||
Total Liabilities | 3,068.7 | 2,934.8 | ||||||
COMMITMENTS AND CONTINGENCIES | ||||||||
REDEEMABLE NONCONTROLLING INTEREST | 34.2 | — | ||||||
EQUITY/(DEFICIT) | ||||||||
Shareholders’ Equity | ||||||||
Common Stock, $0.01 par value: 3,000 authorized, 206.0 and 205.1 issued, respectively | 2.1 | 2.1 | ||||||
Additional Paid-in/(Distributed) Capital | (687.2 | ) | (728.4 | ) | ||||
Retained Earnings | 1,053.4 | 770.0 | ||||||
Treasury Stock – at cost | (198.0 | ) | (89.7 | ) | ||||
Accumulated Other Comprehensive Income | (143.8 | ) | (133.1 | ) | ||||
Total Shareholders’ Equity/(Deficit) | 26.5 | (179.1 | ) | |||||
Noncontrolling Interests | 16.0 | 11.1 | ||||||
Total Equity/(Deficit) | 42.5 | (168.0 | ) | |||||
TOTAL | $ | 3,145.4 | $ | 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- | Total | Non- | ||||||||||||||||||||||||||
Common | (Distributed) | Retained | Treasury | Comprehensive | controlling | Equity/ | controlling | |||||||||||||||||||||||
Stock | Capital | Earnings | Stock | Loss | Interests | (Deficit) | Interest | |||||||||||||||||||||||
Balance as of January 1, 2011 | $ | 2.0 | $ | (775.6 | ) | $ | 474.0 | $ | (3.2 | ) | $ | (64.6 | ) | $ | 9.1 | $ | (358.3 | ) | $ | — | ||||||||||
Stock-based Compensation Awards | 34.8 | — | 34.8 | |||||||||||||||||||||||||||
Treasury Stock Acquired | (81.6 | ) | (81.6 | ) | ||||||||||||||||||||||||||
Distributions to Noncontrolling Interests | (8.6 | ) | (8.6 | ) | ||||||||||||||||||||||||||
Cash Dividends Declared | (159.5 | ) | (159.5 | ) | ||||||||||||||||||||||||||
Net Earnings | 422.9 | 6.8 | 429.7 | |||||||||||||||||||||||||||
Other Comprehensive Income | (1.5 | ) | 0.2 | (1.3 | ) | |||||||||||||||||||||||||
Balance as of September 30, 2011 | $ | 2.0 | $ | (740.8 | ) | $ | 737.4 | $ | (84.8 | ) | $ | (66.1 | ) | $ | 7.5 | $ | (144.8 | ) | $ | — | ||||||||||
Balance as of January 1, 2012 | $ | 2.1 | $ | (728.4 | ) | $ | 770.0 | $ | (89.7 | ) | $ | (133.1 | ) | $ | 11.1 | $ | (168.0 | ) | $ | — | ||||||||||
Stock-based Compensation Awards | 41.2 | (15.0 | ) | 26.2 | ||||||||||||||||||||||||||
Treasury Stock Acquired | (93.3 | ) | (93.3 | ) | ||||||||||||||||||||||||||
Acquisition | — | 30.2 | ||||||||||||||||||||||||||||
Distributions to Noncontrolling Interests | (4.0 | ) | (4.0 | ) | ||||||||||||||||||||||||||
Cash Dividends Declared | (183.8 | ) | (183.8 | ) | ||||||||||||||||||||||||||
Net Earnings | 470.3 | 8.9 | 479.2 | 0.9 | ||||||||||||||||||||||||||
Redeemable Noncontrolling Interest Accretion | (3.1 | ) | (3.1 | ) | 3.1 | |||||||||||||||||||||||||
Other Comprehensive Income | (10.7 | ) | — | (10.7 | ) | |||||||||||||||||||||||||
Balance as of September 30, 2012 | $ | 2.1 | $ | (687.2 | ) | $ | 1,053.4 | $ | (198.0 | ) | $ | (143.8 | ) | $ | 16.0 | $ | 42.5 | $ | 34.2 |
MEAD JOHNSON NUTRITION COMPANY | ||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Dollars in millions) | ||||||||
(UNAUDITED) | ||||||||
Nine Months Ended September 30, | ||||||||
2012 | 2011 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net Earnings | $ | 480.1 | $ | 429.7 | ||||
Adjustments to Reconcile Net Earnings to Net Cash Provided by Operating Activities: | ||||||||
Depreciation and Amortization | 56.7 | 57.1 | ||||||
Other | 23.5 | 33.7 | ||||||
Changes in Assets and Liabilities | (95.3 | ) | (56.0 | ) | ||||
Pension and Other Post Retirement Benefits Contributions | (24.9 | ) | (4.6 | ) | ||||
Net Cash Provided by Operating Activities | 440.1 | 459.9 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Payments for Capital Expenditures | (85.7 | ) | (77.4 | ) | ||||
Proceeds from Sale of Property, Plant and Equipment | 1.2 | 1.1 | ||||||
Proceeds from Sale of Intangible Assets | 5.5 | — | ||||||
Investment in Other Companies | (3.3 | ) | — | |||||
Acquisition | (106.1 | ) | — | |||||
Net Cash Used in Investing Activities | (188.4 | ) | (76.3 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Proceeds from Short-term Borrowings | 385.2 | 67.4 | ||||||
Repayments of Short-term Borrowings | (230.0 | ) | (68.6 | ) | ||||
Repayments of Notes Payable | (26.8 | ) | — | |||||
Payments of Dividends | (175.6 | ) | (152.6 | ) | ||||
Stock-based-compensation-related Proceeds and Excess Tax Benefits | 21.0 | 3.1 | ||||||
Purchases of Treasury Stock | (108.3 | ) | (82.8 | ) | ||||
Proceeds from Termination of Interest Rate Swaps | — | 23.5 | ||||||
Distributions to Noncontrolling Interests | (2.2 | ) | (8.6 | ) | ||||
Net Cash Used in Financing Activities | (136.7 | ) | (218.6 | ) | ||||
Effects of Changes in Exchange Rates on Cash and Cash Equivalents | 3.1 | 0.7 | ||||||
NET INCREASE IN CASH AND CASH EQUIVALENTS | 118.1 | 165.7 | ||||||
CASH AND CASH EQUIVALENTS: | ||||||||
Beginning of Period | 840.3 | 595.6 | ||||||
End of Period | $ | 958.4 | $ | 761.3 |
MEAD JOHNSON NUTRITION COMPANY | ||||||||||||||||||||
SUPPLEMENTAL FINANCIAL INFORMATION | ||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||||
% Change Due to | ||||||||||||||||||||
Three Months Ended September 30, | Foreign | |||||||||||||||||||
2012 | 2011 | % Change | Volume | Price | Exchange | |||||||||||||||
Net Sales | ||||||||||||||||||||
Asia/Latin America | $ | 639.9 | $ | 636.1 | 1 | % | -5 | % | 8 | % | -2 | % | ||||||||
North America/Europe | 281.4 | 297.8 | -6 | % | -7 | % | 3 | % | -2 | % | ||||||||||
Total | $ | 921.3 | $ | 933.9 | -1 | % | -5 | % | 6 | % | -2 | % | ||||||||
Earnings Before Interest and Income Taxes | ||||||||||||||||||||
Asia/Latin America | $ | 190.7 | $ | 198.4 | -4 | % | ||||||||||||||
North America/Europe | 55.6 | 71.9 | -23 | % | ||||||||||||||||
Corporate and Other | (63.1 | ) | (68.6 | ) | 8 | % | ||||||||||||||
Total | $ | 183.2 | $ | 201.7 | -9 | % | ||||||||||||||
% Change Due to | ||||||||||||||||||||
Nine Months Ended September 30, | Foreign | |||||||||||||||||||
2012 | 2011 | % Change | Volume | Price | Exchange | |||||||||||||||
Net Sales | ||||||||||||||||||||
Asia/Latin America | $ | 2,036.4 | $ | 1,824.6 | 12 | % | 5 | % | 8 | % | -1 | % | ||||||||
North America/Europe | 883.8 | 941.1 | -6 | % | -9 | % | 4 | % | -1 | % | ||||||||||
Total | $ | 2,920.2 | $ | 2,765.7 | 6 | % | 1 | % | 6 | % | -1 | % | ||||||||
Earnings Before Interest and Income Taxes | ||||||||||||||||||||
Asia/Latin America | $ | 707.2 | $ | 625.0 | 13 | % | ||||||||||||||
North America/Europe | 163.9 | 251.2 | -35 | % | ||||||||||||||||
Corporate and Other | (190.8 | ) | (248.2 | ) | 23 | % | ||||||||||||||
Total | $ | 680.3 | $ | 628.0 | 8 | % |
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 SEPTEMBER 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 | $ | 183.2 | $ | 201.7 | $ | 140.3 | $ | 144.7 | $ | 0.69 | $ | 0.70 | |||||||||||
Specified Items:(1) | |||||||||||||||||||||||
IT and other separation costs(2) | 4.9 | 21.1 | |||||||||||||||||||||
Gain on sale of certain non-core intangible assets(3) | (5.5 | ) | - | ||||||||||||||||||||
Severance and other costs(3) | 8.1 | 0.2 | |||||||||||||||||||||
Legal, settlements and related costs(2,3) | 0.2 | 3.2 | |||||||||||||||||||||
Specified Items before income taxes | 7.7 | 24.5 | 7.7 | 24.5 | 0.04 | 0.12 | |||||||||||||||||
Income tax impact on items above | (3.2 | ) | (8.2 | ) | (0.02 | ) | (0.04 | ) | |||||||||||||||
Non-GAAP results | $ | 190.9 | $ | 226.2 | $ | 144.8 | $ | 161.0 | 0.71 | 0.78 | |||||||||||||
FOR THE NINE MONTHS ENDED SEPTEMBER 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 | $ | 680.3 | $ | 628.0 | $ | 470.3 | $ | 422.9 | $ | 2.29 | $ | 2.06 | |||||||||||
Specified Items:(1) | |||||||||||||||||||||||
IT and other separation costs(2) | 12.0 | 61.2 | |||||||||||||||||||||
Gain on sale of certain non-core intangible assets(3) | (5.5 | ) | - | ||||||||||||||||||||
Severance and other costs(3) | 9.6 | 0.2 | |||||||||||||||||||||
Legal, settlements and related costs(2,3) | 3.1 | 4.4 | |||||||||||||||||||||
Specified Items before income taxes | 19.2 | 65.8 | 19.2 | 65.8 | 0.09 | 0.32 | |||||||||||||||||
Income tax impact on items above | (6.1 | ) | (22.2 | ) | (0.02 | ) | (0.11 | ) | |||||||||||||||
Non-GAAP results | $ | 699.5 | $ | 693.8 | $ | 483.4 | $ | 466.5 | $ | 2.36 | $ | 2.27 | |||||||||||
(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
or
Media:
Christopher
Perille, (847) 832-2178
chris.perille@mjn.com
10/25/2012