Mead Johnson Nutrition Q1 Profit Rises - Quick Facts

(RTTNews) - Mead Johnson Nutrition Co. (MJN) reported that its first-quarter net earnings attributable to shareholders increased to $202.4 million or $1.00 per share, from $188.0 million or $0.92 per share in the same quarter last year.

The company applied both of some accounting changes, immediate recognition of actuarial gains or losses and use of actual fair value to calculate expected return on pension plan assets, retrospectively to all periods presented. The cumulative effect of these changes on additional-paid-in/(distributed) capital and retained earnings on the Company's opening balance sheet as of January 1, 2013 was a decrease of $96.2 million and an increase of $72.4 million, respectively, with an offsetting adjustment to accumulated other comprehensive loss.

The company recognized an actuarial gain of $15.2 million on a pre-tax basis for the three months ended March 31, 2013. The company did not recognize any actuarial gains or losses for the three months ended March 31, 2014 as no remeasurement was required. These changes had no impact on cash flows for the interim periods presented.

Earnings per share, prior accounting principles, for the latest-quarter was $0.99, compared to prior year earnings per share of $0.85 (Previously Reported). Analysts polled by Thomson Reuters expected the company to report earnings of $0.91 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter rose to $1.11 billion from $1.04 billion in the prior year quarter. Ten analysts had consensus revenue estimate of $1.10 billion for the quarter.