McCormick & Company (MKC) 8-K Results of Operations and Financial Condition

Exhibit 99.1

Second Quarter Report McCormick & Company, Incorporated

Consolidated Income Statement

(In thousands except per-share data)

	Three Months Ended						Six Months Ended
	5/31/2005			5/31/2004			5/31/2005			5/31/2004
Net sales	$	628,571		$	596,164		$	1,232,195		$	1,168,526
Cost of goods sold	387,225			364,238			762,680			714,913
Gross profit	241,346			231,926			469,515			453,613
Gross profit margin	38.4		%	38.9		%	38.1		%	38.8		%
Selling, general & administrative expense	170,864			168,652			339,775			328,885
Special charges / (credits)	(670		)	(6,448		)	630			(6,379		)
Operating income	71,152			69,722			129,110			131,107
Interest expense	11,942			9,695			23,026			19,267
Other (income) / expense, net	97			(536		)	43			(684		)
Income from consolidated operations before income taxes	59,113			60,563			106,041			112,524
Income taxes	18,916			18,713			33,933			34,769
Net income from consolidated operations	40,197			41,850			72,108			77,755
Income from unconsolidated operations	3,802			1,825			9,258			5,085
Minority interest	(1,205		)	(822		)	(2,537		)	(1,881		)
Net income	$	42,794		$	42,853		$	78,829		$	80,959
Earnings per share - basic	$	0.32		$	0.31		$	0.58		$	0.59
Earnings per share - diluted	$	0.31		$	0.30		$	0.56		$	0.57
Average shares outstanding - basic	134,742			137,679			135,193			137,519
Average shares outstanding - diluted	138,739			142,494			139,586			142,133

Second Quarter Report	McCormick & Company, Incorporated
Consolidated Balance Sheet
(In thousands)

	5/31/2005		5/31/2004
Assets
Current assets
Cash and cash equivalents	$	20,096	$	16,125
Receivables, net	328,117		309,700
Inventories	345,281		373,974
Prepaid expenses and other current assets	45,560		37,416
Total current assets	739,054		737,215
Property, plant and equipment, net	471,495		456,556
Goodwill and intangible assets, net	789,719		727,505
Prepaid allowances	50,078		79,711
Investments and other assets	136,317		129,287
Total assets	$	2,186,663	$	2,130,274
Liabilities and shareholders’ equity
Current liabilities
Short-term borrowings and current portion of long-term debt	$	421,455	$	142,810
Trade accounts payable	167,816		166,188
Other accrued liabilities	293,329		295,475
Total current liabilities	882,600		604,473
Long-term debt	271,202		495,884
Other long-term liabilities	197,745		204,900
Total liabilities	1,351,547		1,305,257
Minority interest	29,128		23,780
Shareholders’ equity
Common stock	372,127		312,192
Retained earnings	375,721		448,463
Accumulated other comprehensive income	58,140		40,582
Total shareholders’ equity	805,988		801,237
Total liabilities and shareholders’ equity	$	2,186,663	$	2,130,274

Second Quarter Report	McCormick & Company, Incorporated
Consolidated Statement of Cash Flows (Unaudited)
(In thousands)

	Six Months Ended
	5/31/2005			5/31/2004
Cash flows from operating activities
Net income	$	78,829		$	80,959
Adjustments to reconcile net income to net cash flow from operating activities:
Depreciation and amortization	35,493			34,702
Income from unconsolidated operations	(9,258		)	(5,085		)
Changes in operating assets and liabilities	(47,504		)	(31,943		)
Dividends from unconsolidated affiliates	9,020			900
Net cash flow from operating activities	66,580			79,533
Cash flows from investing activities
Capital expenditures	(30,316		)	(27,654		)
Proceeds from sale of property, plant and equipment	488			1,271
Net cash flow from investing activities	(29,828		)	(26,383		)
Cash flows from financing activities
Short-term borrowings, net	54,686			(28,686		)
Long-term debt borrowings	5			49,788
Long-term debt repayments	(352		)	(260		)
Proceeds from exercised stock options	28,983			31,273
Common stock acquired by purchase	(120,732		)	(80,740		)
Dividends paid	(43,337		)	(38,561		)
Net cash flow from financing activities	(80,747		)	(67,186		)
Effect of exchange rate changes on cash and cash equivalents	(6,244		)	5,020
Decrease in cash and cash equivalents	(50,239		)	(9,016		)
Cash and cash equivalents at beginning of period	70,335			25,141
Cash and cash equivalents at end of period	$	20,096		$	16,125