Posted on January - 26 - 2011
Mead Johnson reports record sales, earnings in 2010 | READ THE REPORT
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Mead Johnson Nutrition saw record sales and earnings in 2010 and is poised for another strong performance this year, the company reported Thursday.
Mead Johnson, which produces infant formula, has its operational headquarters in Evansville. The company’s corporate offices are in the Chicago suburb of Glenview, Ill.
The company’s fourth-quarter net earnings totaled $99.6 million (48 cents per diluted share), as compared to $64.0 million (31 cents per share) for the same period a year earlier.
For the entire year Mead Johnson earned $452.7 million ($2.20 per share), up 13 percent from $399.6 million ($1.99 per share) in 2009.
Sales rose 13 percent in the fourth quarter, and 11 percent for the year.
“We concluded 2010 on a very strong note and delivered another year of record sales and earnings,” Chief Executive Officer Steve Golsby said in a conference call with investors.
The company’s net sales for the year totaled $3.14 billion, up 11 percent from the previous year. Following a trend from previous quarters, Mead Johnson saw its strongest sales in its Asian and Latin American markets.
Asia/Latin America sales for 2010 were $1.93 billion. That represents year-over-year sales growth of 16 percent, not including the effect of foreign exchange rates.
China and Hong Kong were especially strong markets, Golsby said, and other bright spots included Malaysia, Singapore, Mexico, Brazil, Colombia and Peru.
Golsby said the company is making investments to increase its business in countries that show “very exciting long-term potential,” including the Middle East, India, Brazil, Russia and China.
Annual sales in North America/Europe, at $1.21 billion, remained essentially flat compared to 2009.
During 2010 the company benefitted from increased productivity, lower interest expenses and a lower tax rate. But these gains were largely offset, the company said, by investment expenses, higher commodity costs, the devaluation of the Venezuelan bolivar and continuing costs associated with becoming independent from Bristol Myers Squibb. Mead Johnson split from Bristol Myers in 2009 and is still working to transition to a new shared service provider and technology platform.
Looking ahead, Golsby said the company’s adjusted guidance for 2011 is in the range of $2.55 to $2.65 per share, up from $2.42 per share for 2010.
Shares of Mead Johnson closed at $59.61 per share on the New York Stock Exchange, down 41 cents.
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