First Quarter 20001 Financial Results - Consolidated Financial Results April 23, 2001 FOR IMMEDIATE RELEASE The Wm. Wrigley Jr. Company announced today that first quarter 2001 sales rose 12% on a very strong worldwide shipment volume gain of 12%. Net earnings for the quarter were $0.36 per share, up $0.03 or better than 9% from a year ago. In the absence of the negative effect of currency translation of foreign results into a stronger U.S. dollar, sales would have grown by 16% and earnings would have increased by 13%. Sales For the 2001 first quarter, global sales climbed by 12% to $562 million, up $58 million from the same quarter last year. Total company sales for the quarter would have been up $77 million or 16% in the absence of the negative currency translation effect. Sales in the Europe, Asia and Pacific regions combined, increased by more than 11% in the first quarter, but would have been up over 18% without the effect of translating foreign currencies - especially the euro, the British pound and the Australian dollar - to the stronger U.S. dollar. Despite the dampening effect of currency translation, double-digit sales increases were recorded across numerous international markets on an overall 13% increase in shipments. Sales also benefited from improved product mix, including contributions made by Airwaves® across all three overseas regions. First quarter sales in the Americas region were up 11% on a 9% shipment increase. In the United States, sales were up 12%, the Company's largest quarterly increase in this market in 10 years. Volume in the U.S. climbed by 8%, lead by new products - such as Extra® Polar Ice® and Eclipse® - as well as the recently reformulated Big Red®. Also contributing to the Americas sales gain was solid growth across Latin America, while higher shipments for Amurol Confections were offset by reduced shipments for Wrigley Canada. Consolidated gross margin for the quarter was 59.3%, up 200 basis points from 57.3% for the same period a year ago, reflecting improved product mix and cost controls. Earnings Consolidated net earnings of $81.5 million were up $6.9 million or over 9% from the prior year. On a per share basis, earnings for the quarter rose by $0.03 or 9% to $0.36 from a split-adjusted figure of $0.33 a year ago. Without the currency translation effect, earnings per share would have been $0.37, up $0.04 or 12%. Earnings in the quarter benefited from increased shipments, improved product mix and favorable product cost. The combined operating profits for the overseas regions increased 21% in the first quarter versus the prior year. In Europe, the improvement was led by business performance in Russia, U.K. and Germany. China, Hong Kong, Taiwan and Australia drove the gains in the Asia and Pacific regions. In the Americas region, first quarter operating profits grew by 9%. The stronger results principally reflect positive volume, mix and cost comparisons vesus the prior year. Initial shipments of Surpass® antacid chewing gum by Wrigley Healthcare, that began in late February, provided a small boost to overall Company sales and volume; however, as is typical for a major brand launch, revenues were more than offset by marketing spending. View the report FROM: WM. WRIGLEY JR. COMPANY Christopher J. Perille Director - Corporate Communications Phone: (312) 644-2121 To the extent that statements contained in this press release may be considered forward-looking statements, the following will be deemed to be the Company's meaningful cautionary disclosure regarding such statements. A variety of factors could cause actual results to differ materially from the anticipated results or expectations expressed. The important factors that could affect these outcomes are set forth in Exhibit 99 to the Company's Annual Report on Form 10-K for the year ended December 31, 2000. << Back