Mead Johnson Nutrition Reports Third Quarter and Nine-Month 2015 Earnings; Updates 2015 Guidance; and Announces $1.5 Billion Share Repurchase Plan

GLENVIEW, Ill.–(BUSINESS WIRE)–Mead Johnson Nutrition Company (NYSE: MJN) today announced its financial
results for the quarter and nine months ended September 30, 2015.

  • Third quarter constant dollar(1) sales were 4% below the
    prior year quarter. Continued strength in North America/Europe only
    partially offset the impact of weaker performance in emerging markets.
    Results were further impacted by adverse foreign currency translation
    and reported sales were 10% below the prior year quarter.
  • Sales for the nine months ended September 30, 2015 were 1% below the
    prior year on a constant dollar basis and 6% below on a reported basis.
  • Gross margin improved by 460 basis points to 64.5% from 59.9% in the
    prior year quarter, mainly due to lower dairy input costs.
  • EBIT as adjusted(2) was 7% above the prior year on a
    constant dollar basis. On a reported basis, EBIT was 7% below the
    prior year.
  • Based on weighted average shares outstanding for the quarter of 201.7
    million, non-GAAP EPS(2) for the third quarter was $0.80;
    GAAP EPS was $0.77.
  • The company repurchased 5.6 million shares of stock for $437 million
    during the quarter under the existing authorization. Shares
    outstanding at September 30, 2015 were 197.1 million.
  • The company announces a new share repurchase program of up to $1.5
    billion of the company’s common stock.
  • Full-year constant dollar sales are expected in the range of 2% to 3%
    below the prior year. Including the impact of foreign exchange,
    full-year reported sales performance is expected to be 7% to 8% below
    the prior year.
  • Full-year non-GAAP EPS is expected to be in the range of $3.33 to
    $3.43.
  • The company expects to incur charges of approximately $25 million
    associated with the Fuel for Growth initiative in the fourth quarter
    of 2015. Inclusive of this charge, Specified Items are expected to be
    $0.18 per share excluding any further mark-to-market pension
    adjustments. As a result, full-year GAAP EPS is expected to be in the
    range of $3.15 to $3.25.

“Our most recently completed quarter was more challenging than we had
anticipated. However, we are delighted with the continued strength of
our North American and European businesses, as well as encouraged by the
early feedback on our new initiatives in China. We have adjusted our
expectations for full-year 2015 and expect near-term challenges in our
emerging market segments to linger into 2016.” said Kasper Jakobsen,
Chief Executive Officer.

(1) Constant dollar figures exclude the
impact of changes in foreign currency exchange rates.

(2) Non-GAAP or as adjusted results exclude
Specified Items. For a description of Specified Items, and a
reconciliation of non-GAAP to GAAP and constant dollar results,
see the schedules titled “Supplemental Financial Information” and
“Reconciliation of Non-GAAP to GAAP Results.”

     
Third Quarter 2015
(Dollars in Millions)
(UNAUDITED)
 
Three Months Ended September 30, % Change % Change Due to
  % of     % of   Constant     Foreign
Net Sales 2015 Total 2014 Total Reported Dollar Volume Price/Mix Exchange
Asia $ 476.8 49 % $ 561.5 52 % (15 )% (11 )% (7 )% (4 )% (4 )%
Latin America 184.5 19 % 222.9 20 % (17 )% (1 )% (5 )% 4 % (16 )%
North America/Europe 316.2   32 % 306.3   28 % 3 % 7 % 3 % 4 % (4 )%
Net Sales $ 977.5   100 % $ 1,090.7   100 % (10 )% (4 )% (4 )% % (6 )%
 
  • Strong performance in North America/Europe was insufficient to fully
    offset sales weakness in emerging markets.
  • The North America/Europe segment delivered strong sales growth, driven
    by market share gains and favorable market conditions in the United
    States and Canada.
  • In China, price based promotional activities were seen across all
    channels. The company recently introduced a fully imported range of
    products in China which are performing well. However, weakness in
    demand for locally manufactured products remained a challenge.
  • In several other emerging markets, share gains made late in the
    quarter were insufficient to offset earlier share losses and category
    softness.
 
Three Months Ended September 30,
Earnings Before Interest and Income Taxes (EBIT) 2015  

% of
Sales

  2014  

% of
Sales

  % Change
Asia $ 154.2 32 % $ 186.2 33 % (17 )%
Latin America 38.9 21 % 52.6 24 % (26 )%
North America/Europe 101.3 32 % 66.8 22 % 52 %
Corporate and Other (68.4 ) (63.0 ) (9 )%
EBIT as reported $ 226.0   23 % $ 242.6   22 % (7 )%
Specified Items $ 13.0 $ 3.4
Impact of F/X $ 25.3    
EBIT as adjusted $ 264.3   $ 246.0   7 %
 
  • EBIT as adjusted, on a constant dollar basis, increased 7% above the
    prior year quarter, mainly due to higher gross margins as a result of
    favorable dairy costs across all segments.
  • North America/Europe EBIT was driven by higher sales and gross margin
    improvement, partially offset by higher advertising and promotion
    investments, including digital.
  • Asia and Latin America EBIT was primarily the result of lower sales.
  • Latin America EBIT performance and comparison was further exacerbated
    by prior-year foreign exchange related gains on payments received from
    the Venezuelan business and the current year postponed shipments into
    the country.
  • Corporate and Other expenses increased primarily due to the
    nonrecurrence of a prior-year pension curtailment gain, as well as
    higher actuarial losses in the current year compared to the prior
    year. Partially offsetting these increases were lower provisions for
    incentive related compensation in the current year.
     

Nine Months 2015

(Dollars in Millions)
(UNAUDITED)
 
Nine Months Ended September 30, % Change % Change Due to
  % of     % of   Constant     Foreign
Net Sales 2015 Total 2014 Total Reported Dollar Volume Price/Mix Exchange
Asia $ 1,571.0 51% $ 1,729.8 52 % (9 )% (7 )% (6 )% (1 )% (2 )%
Latin America 587.3 19% 659.7 20 % (11 )% 4 % (3 )% 7 % (15 )%
North America/Europe 946.0   30% 925.6   28 % 2 % 5 % 1 % 4 % (3 )%
Net Sales $ 3,104.3   100% $ 3,315.1   100 % (6 )% (1 )% (3 )% 2 % (5 )%
 
  • Strong growth in North America/Europe was insufficient to fully offset
    generally weaker category sales in emerging markets.
  • North America/Europe sales growth was driven by higher, realized
    pricing and market share gains.
  • In China, continued price-based promotional activity and an ongoing
    shift in consumer demand towards fully imported products negatively
    impacted demand for the company’s locally manufactured products. The
    company recently introduced a fully imported product that has met
    expectations since its launch in the second quarter of 2015.
  • In Latin America, sales were lower due to slowing category growth and
    adverse foreign exchange movements. Share gains were seen in key
    markets following strategic investment. The company slowed shipments
    to Venezuela late in the period, pending access to foreign exchange to
    allow settlement of inter-company payables.
 
Nine Months Ended September 30,
Earnings Before Interest and Income Taxes (EBIT) 2015  

% of
Sales

  2014  

% of
Sales

 

% Change

Asia $ 542.1 35 % $ 623.4 36 % (13 )%
Latin America 141.0 24 % $ 152.6 23 % (8 )%
North America/Europe 264.9 28 % $ 200.9 22 % 32 %
Corporate and Other (207.6 ) $ (198.2 ) (5 )%
EBIT as reported $ 740.4   24 % $ 778.7   23 % (5 )%
Specified Items $ 20.8 $ 20.9
Impact of F/X $ 42.4    
EBIT as adjusted $ 803.6   $ 799.6   1 %
 
  • EBIT as adjusted, on a constant dollar basis, increased 1% due to
    higher gross margins across all segments as a result of lower dairy
    costs. Higher operating expenses, including increased investment in
    demand-creation initiatives on a local currency basis, partially
    offset the impact from gross margin improvements.
  • The reduction in EBIT in Asia was driven by lower sales and higher
    demand-creating investments to support the introduction of the
    company’s fully imported products in China.
  • Latin America EBIT was impacted by lower sales. In addition, the
    comparison was also impacted by foreign exchange related gains in
    Venezuela in the prior year period.
  • North America/Europe EBIT benefited from higher sales and improved
    gross margin.
  • Corporate and Other expenses increased primarily as a result of
    one-time costs related to the company’s settlement of the SEC matter,
    as disclosed in July 2015.

Cash Flow Items and Share Repurchases

  • Cash and cash equivalents increased by $66 million since December 31,
    2014 and were $1.4 billion at September 30, 2015. Short-term
    borrowings and long-term debt were $1.5 million and $1.8 billion,
    respectively, as of September 30, 2015.
  • Operating cash flow was $609 million in the nine months ended
    September 30, 2015 compared to $565 million in the same period last
    year. Cash flows increased due to working capital improvements which
    were substantial enough to more than offset the impact of over $86
    million in discretionary contributions to pension plans. In the prior
    year, cash outflow related to re-branding of certain products and the
    start-up of the manufacturing facility in Singapore did not recur in
    the current year.
  • Investing activities include capital expenditures of $125 million
    during the nine months ended September 30, 2015. This included
    investments in capacity expansion for manufacturing facilities in the
    U.S. and the Netherlands to accommodate demand for our new fully
    imported product in China and liquid offerings.
  • Financing activities include cash outflows of $437 million for the
    repurchase of approximately 5.6 million shares of stock under the
    company’s 2013 share repurchase authorization, which is now
    substantially complete. These purchases were funded, in part, from
    $322 million of borrowings against the company’s revolving credit
    facility.
  • On October 20, 2015, the company’s board of directors approved a new
    share repurchase authorization of $1.5 billion of the company’s common
    stock. The company expects to finance the share repurchases through
    the issuance of debt, which may include long-term notes. The adoption
    of the new program follows the substantial completion of purchases of
    common stock under the prior repurchase authorization approved in
    September 2013. Shares will be repurchased from time to time in the
    open market or in privately negotiated transactions, including,
    without limitation, the anticipated use of a $1.0 billion accelerated
    share repurchase program which the company expects to execute in the
    short term.

Outlook for 2015

The company expects full year 2015 constant dollar revenue to be 2% to
3% below the prior year. Foreign exchange is assumed to adversely affect
translation into U.S. dollars, resulting in estimated reported sales of
7% to 8% below the prior year.

“With the majority of the year behind us, we estimate constant dollar
revenue to be slightly below the prior year and non-GAAP EPS to fall
between $3.33 to $3.43. This has shaped up to be a challenging year on
several fronts, and I am satisfied with the way we are adjusting our
strategies appropriately in recognition of environmental changes. We
remain committed to our investment in growth initiatives and innovation
critical to our long term success. We are building momentum behind our
Fuel For Growth productivity initiative to ensure we can fund growth
initiatives appropriately and support a gradual improvement in
profitability, while also delivering our long-term financial ambition.
In today’s Investor Day presentations, we will provide more detail on
our growth initiatives and cost reduction actions as well as outline a
plan to return capital to shareholders via a new, larger share buyback
program. In the latest quarter, we bought back approximately three
percent of our outstanding shares. Consistent with my earlier statements
that we will optimize our capital structure over time, the next phase of
our share repurchase program will go further,” said Kasper Jakobsen,
Chief Executive Officer.

Specified Items are expected to be $0.18 per share, excluding any
further mark-to-market pension adjustments. As a result, full-year GAAP
EPS is expected to be in the range of $3.15 to $3.25.

Conference Call Scheduled

Mead Johnson will host a conference call at 8:30 a.m. CDT today, during
which company executives will review financial results for the third
quarter and first nine months of 2015. Security analysts and investors
wishing to participate by telephone should call (877) 359-9508, pass
code: Mead Johnson. Callers outside of North America should call
+1-224-357-2393 to be connected. The earnings conference call will also
be broadcast over the Internet at http://investors.meadjohnson.com.
A replay of the earnings conference call will be available through 11:00
p.m. CST Sunday, December 6, 2015, by calling (855) 859-2056, or outside
of North America by calling +1-404-537-3406, pass code: 50955892. The
replay will also be available at meadjohnson.com.

The earnings call will be followed by the bi-annual Investor Day event
from 9:00 a.m. to 1:00 p.m. CDT, during which senior executives will
discuss the Company’s strategies and plans. Two Q&A sessions will be
hosted during the management presentation. The management presentation
will be broadcast over the Internet at http://investors.meadjohnson.com.
The replay will also be available at meadjohnson.com.

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 United States Securities and Exchange
Commission (the “SEC”), including its most recent Annual Report on Form
10-K, which filings are available upon request from the SEC or at www.meadjohnson.com.
The company cautions readers not to place undue reliance on any
forward-looking statements, which speak only as of the date made. The
company undertakes no obligation to publicly update any forward-looking
statement, whether as a result of new information, future events or
otherwise.

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) The Special Supplemental Nutrition Program for
Women, Infants and Children (WIC) is a federal assistance program of the
Food and Nutrition Services (FNS) of the United States Department of
Agriculture (USDA).

   
MEAD JOHNSON NUTRITION COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Dollars and shares in millions, except per share data)
(UNAUDITED)
 
Three Months Ended Nine Months Ended
September 30, September 30,
2015   2014 2015   2014
NET SALES $ 977.5 $ 1,090.7 $ 3,104.3 $ 3,315.1
Cost of Products Sold 346.8   437.9   1,096.7   1,270.4  
GROSS PROFIT 630.7 652.8 2,007.6 2,044.7
Operating Expenses:
Selling, General and Administrative 216.1 240.2 679.5 715.4
Advertising and Promotion 156.1 158.9 490.7 489.2
Research and Development 26.3 28.7 79.9 82.5
Other (Income)/Expenses – net 6.2   (17.6 ) 17.1   (21.1 )
EARNINGS BEFORE INTEREST AND INCOME TAXES 226.0 242.6 740.4 778.7
 
Interest Expense—net 14.8   18.3   42.5   46.0  
EARNINGS BEFORE INCOME TAXES 211.2 224.3 697.9 732.7
 
Provision for Income Taxes 56.6   36.0   173.6   160.5  
NET EARNINGS 154.6 188.3 524.3 572.2
Less Net Earnings/(Loss) Attributable to Noncontrolling Interests (0.6 ) 0.7   (1.2 ) 10.8  
NET EARNINGS ATTRIBUTABLE TO SHAREHOLDERS $ 155.2   $ 187.6   $ 525.5   $ 561.4  
 
Earnings per Share(a)– Basic
Net Earnings Attributable to Shareholders $ 0.77   $ 0.93   $ 2.59   $ 2.77  
Earnings per Share(a)– Diluted
Net Earnings Attributable to Shareholders $ 0.77   $ 0.92   $ 2.59   $ 2.77  
 
Weighted Average Shares – Diluted 201.7 202.7 202.6 202.6
Dividends Declared per Share $ 0.4125 $ 0.3750 $ 1.2375 $ 1.1250
 

(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.

   
MEAD JOHNSON NUTRITION COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars and shares in millions, except per share data)
(UNAUDITED)
 
September 30, 2015 December 31, 2014
ASSETS
CURRENT ASSETS:
Cash and Cash Equivalents $ 1,363.5 $ 1,297.7
Receivables—net of allowances of $6.5 and $9.6, respectively 368.9 387.8
Inventories 518.6 555.5
Deferred Income Taxes—net of valuation allowance 77.9 86.8
Income Taxes Receivable 37.2 7.7
Prepaid Expenses and Other Assets 69.1   82.6  
Total Current Assets 2,435.2 2,418.1
Property, Plant, and Equipment—net 933.2 912.7
Goodwill 147.0 162.7
Other Intangible Assets—net 65.0 75.4
Deferred Income Taxes—net of valuation allowance 47.9 65.1
Other Assets 149.6   142.5  
TOTAL $ 3,777.9   $ 3,776.5  
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Short-term Borrowings $ 1.5 $ 4.1
Accounts Payable 450.1 512.3
Dividends Payable 83.0 76.6
Accrued Expenses and Other Liabilities 198.1 203.7
Accrued Rebates and Returns 368.8 329.1
Deferred Income—current 20.9 34.3
Income Taxes—payable and deferred 71.2   46.4  
Total Current Liabilities 1,193.6 1,206.5
Long-Term Debt 1,839.3 1,503.9
Deferred Income Taxes—noncurrent 10.3 12.4
Pension and Other Post-employment Liabilities 136.5 211.1
Other Liabilities – noncurrent 206.0   192.8  
Total Liabilities 3,385.7 3,126.7
COMMITMENTS AND CONTINGENCIES
 
REDEEMABLE NONCONTROLLING INTEREST 66.0
 
EQUITY
Shareholders’ Equity
Common Stock, $0.01 par value: 3,000 authorized, 207.7 and 207.2
issued, respectively
2.1 2.1
Additional Paid-in/(Distributed) Capital (572.3 ) (641.3 )
Retained Earnings 2,026.4 1,775.0
Treasury Stock—at cost (799.6 ) (362.6 )
Accumulated Other Comprehensive Loss (305.1 ) (198.9 )
Total Shareholders’ Equity 351.5 574.3
Noncontrolling Interests 40.7   9.5  
Total Equity 392.2   583.8  
TOTAL $ 3,777.9   $ 3,776.5  
 
MEAD JOHNSON NUTRITION COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in millions)
(UNAUDITED)
 
Nine Months Ended September 30,
2015   2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Earnings $ 524.3 $ 572.2
Adjustments to Reconcile Net Earnings to Net Cash Provided by
Operating Activities:
Depreciation and Amortization 73.4 67.8
Other 63.1 30.2
Changes in Assets and Liabilities 34.7 (56.4 )
Payments for Settlement of Interest Rate Forward Swaps (45.0 )
Pension and Other Post-employment Benefit Contributions (86.6 ) (4.2 )
Net Cash Provided by Operating Activities 608.9 564.6
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital Expenditures (125.2 ) (144.0 )
Sale of Property, Plant and Equipment 0.4 0.2
Proceeds from/(Investment in) Other Companies   4.0  
Net Cash Used in Investing Activities (124.8 ) (139.8 )
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from Short-term Borrowings 1.5 3.2
Repayments of Short-term Borrowings (4.0 ) (3.5 )
Repayments of Notes Payable (500.0 )
Payments of Dividends (243.6 ) (220.7 )
Purchases of Treasury Stock (437.0 ) (49.7 )
Long-term Notes, net of original issue discounts and expenses paid 492.3
Long-term Revolver Borrowings 322.0
Stock-based Compensation related Proceeds and Excess Tax Benefits 24.0 27.3
Stock-based Compensation Tax withholdings (11.3 ) (7.9 )
Purchase of Trading Securities (16.2 )
Sale of Trading Securities 21.7
Purchase of Redeemable Shares (24.2 )
Distributions to Noncontrolling Interests (6.9 ) (4.4 )
Net Cash Used in Financing Activities (374.0 ) (263.4 )
Effects of Changes in Exchange Rates on Cash and Cash Equivalents (44.3 ) (17.0 )
NET INCREASE IN CASH AND CASH EQUIVALENTS 65.8   144.4  
CASH AND CASH EQUIVALENTS:
Beginning of Period 1,297.7   1,050.8  
End of Period $ 1,363.5   $ 1,195.2  
   

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 including selling, general and administrative,
research and development and other (income)/expenses net, 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. 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. 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.

 
Three Months Ended September 30, 2015   Three Months Ended September 30, 2014
  Specified Items (a)     Specified Items (a)  
Mark-to-   Mark-to-  
As Market All As As Market All

As

Reported Pension

Other (b)

Adjusted     Reported Pension

Other (b)

Adjusted

NET SALES $ 977.5 $ $ $ 977.5 $ 1,090.7 $ $ $ 1,090.7
Cost of Products Sold 346.8   (3.9 )   342.9     437.9   (3.2 )   434.7  
GROSS PROFIT 630.7 3.9 634.6 652.8 3.2 656.0
GROSS MARGIN % 64.5 % 0.4 % % 64.9 % 59.9 % 0.2 % % 60.1 %
 
Operating Expenses:
Selling, General and Administrative 216.1 (6.3 ) (0.6 ) 209.2 240.2 (5.2 ) (2.7 ) 232.3
Advertising and Promotion 156.1 156.1 158.9 158.9
Research and Development 26.3 (1.2 ) 25.1 28.7 (0.9 ) 27.8
Other (Income)/Expenses – net 6.2     (1.0 ) 5.2     (17.6 )   8.6   (9.0 )
EARNINGS BEFORE INTEREST AND INCOME TAXES 226.0 11.4 1.6 239.0 242.6 9.3 (5.9 ) 246.0
EBIT as a % of Sales 23.1 % 1.2 % 0.2 % 24.5 % 22.2 % 0.9 % (0.5 )% 22.6 %
 
Interest Expense – net 14.8       14.8     18.3       18.3  
EARNINGS BEFORE INCOME TAXES 211.2 11.4 1.6 224.2 224.3 9.3 (5.9 ) 227.7
 
Provision for Income Taxes 56.6   4.0   2.4   63.0     36.0   3.3   (0.2 ) 39.1  
Effective Tax Rate 26.8 % 0.4 % 0.9 % 28.1 % 16.0 % 0.8 % 0.4 % 17.2 %
 
NET EARNINGS 154.6 7.4 (0.8 ) 161.2 188.3 6.0 (5.7 ) 188.6
Less Net Earnings/(Loss) Attributable to Noncontrolling Interests (0.6 )     (0.6 )   0.7       0.7  
NET EARNINGS ATTRIBUTABLE TO SHAREHOLDERS $ 155.2   $ 7.4   $ (0.8 ) $ 161.8     $ 187.6   $ 6.0   $ (5.7 ) $ 187.9  
Earnings per Share– Diluted
Net Earnings Attributable to Shareholders $ 0.77   $ 0.04   $ (0.01 ) $ 0.80     $ 0.92   $ 0.03   $ (0.02 ) $ 0.93  
 

Certain figures do not sum due to rounding.

 

(a) All Specified Items are included in
Corporate and Other.

(b) Specified Items include legal, settlement
and related costs, severance and other expenses, a loss on
marketable securities and a pension curtailment gain.

Contacts

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

Read full story here