Table of Contents

Letter to Shareholders

A Discussion with Bob Lawless

We Know Flavor Inside Out

McCormick At-a-Glance

Leadership at McCormick

Financial Information

Investor Information

 

Business Description

McCormick is a global leader in the manufacture, marketing and distribution of spices, herbs, seasonings and other flavors to the entire food industry. Customers range from retail outlets and food service providers to food manufacturers. Founded in 1889 and built on a culture of Multiple Management, McCormick has approximately 8,000 employees.

Financial Highlights

               
for the year ended November 30 (millions except per share data) includes special charges (credits)   2005     2004   % change  
                 
Net sales $ 2,592.0   $ 2,526.2   2.6 %
                 
Gross profit   1,036.6     1,007.9   2.8 %
                 
   Gross profit margin   40.0 %   39.9 %    
                 
Operating income   343.5     332.7   3.2 %
                 
   Operating income margin   13.3 %   13.2 %    
                 
Net income   214.9     214.5   0.2 %
                 
   Percent to sales   8.3 %   8.5 %    
                 
Earnings per share from continuing operations -diluted   1.56     1.52   2.6 %
                 
   Average shares outstanding - diluted   138.1     141.3   (2.3 %)
                 
Dividends paid $ 86.2   $ 76.9   12.1 %
                 
Dividends paid per share   .64     .56   14.3 %


The scent for this year’s annual report is clove.
               
McCORMICK & COMPANY 2005 ANNUAL REPORT