Mead Johnson 4Q profit up 14 percent; outlook weak

Mead Johnson Nutrition Co.'s fourth-quarter profit rose 14 percent, bolstered by growth in Asia and Latin America, but the Enfamil infant formula maker's 2014 outlook disappointed.

Higher dairy costs and changes in foreign exchange rates are hurting profitability, the Glenview, Ill., company said Friday. Its shares fell 2.9 percent, or $2.28, to $77.09 in afternoon trading.

Mead Johnson expects adjusted per-share earnings this year of $3.50 to $3.62. Analysts forecast $3.68 per share, according to FactSet.

In the fourth quarter, Mead Johnson earned $153.2 million, or 75 cents per share. That's up from $134.2 million, or 66 cents per share, in the previous year's quarter. Adjusted earnings were 78 cents per share, two cents better than analysts' average projection. Revenue climbed 8 percent to $1.06 billion, in line with Wall Street's view.

Asia sales rose 19 percent to $544.2 million, with a boost from a market share recovery in China.

Formula from foreign suppliers is popular in China after product quality scandals involving domestic formula makers. But they have recently faced problems there. Last summer the Chinese government fined six milk suppliers, including a $33 million penalty for Mead Johnson, for price-fixing. Several companies, including Mead Johnson, also said they would cut prices on formula.