By Tess Stynes
Mead Johnson Nutrition Co. (MJN) said its fourth-quarter
earnings rose 3.9% on stronger sales despite being the latest
company to report that its revenue took a hit from a strengthening
dollar.
For the year, the company forecast per-share earnings of $3.90
to $4, below expectations of analysts polled by Thomson Reuters for
$4.12.
Chief Executive Kasper Jakobsen said Thursday that roughly three
quarters of Mead Johnson's revenue is denominated in foreign
currencies while much of its costs are in U.S. dollars. However,
the company expects lower commodity costs will "allow us to improve
gross margins and invest incrementally behind our brands."
Overall, Mead Johnson reported a profit of $158.4 million, or 78
cents a share, up from $152.5 million, or 75 cents a share, a year
earlier. Excluding pension-related impacts and other items,
earnings rose to 92 cents from 82 cents. Revenue increased 3.2% to
$1.09 billion. Excluding currency impacts, the sales growth was
8%.
Analysts polled by Thomson Reuters expected per-share profit of
88 cents and revenue of $1.1 billion.
Gross margin fell to 60.7% from 62.4%, mostly owing to higher
dairy costs and negative currency impacts.
Write to Tess Stynes at tess.stynes@wsj.com
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