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McCormick & Co. 2Q profit up, cuts 2011 outlook

McCormick & Co.’s second-quarter profit rose 11 percent as higher prices helped boost revenue.

But the spice and seasonings maker lowered its fiscal 2011 earnings guidance Thursday because of costs related to an acquisition and joint venture.

McCormick & Co. reported net income of $73.6 million, or 55 cents per share, for the three months ended May 31. That compares with $66.2 million, or 49 cents per share, a year earlier.

Analysts polled by FactSet predicted earnings of 54 cents per share.

Revenue increased 11 percent to $883.7 million from $798.3 million, beating Wall Street’s estimate of $854.3 million.

The company said price hikes added 5 percent to sales. Consumer sales climbed 10 percent, while industrial sales rose 11 percent.

On Tuesday, McCormick & Co. announced that it was buying Polish spice company Kamis SA for about 830 million zloty ($291 million). Earlier in the month the company said it was forming a joint venture with Kohinoor Foods Ltd. of India to market and sell its basmati rice and food products in that country.

McCormick & Co. anticipates fiscal 2011 earnings of $2.74 to $2.79 per share. Its prior forecast was for earnings between $2.80 and $2.85 per share.

Analysts expect earnings of $2.83 per share.

McCormick & Co. stock closed at $49.57 on the New York Stock Exchange, down $1.43.