MCCORMICK & COMPANY 2004 ANNUAL REPORT consolidated statement of income for the year ended November 30 (millions except per share data) 2004 2003 2002 Net sales $2,526.2 $2,269.6 $2,044.9 Cost of goods sold 1,518.3 1,371.0 1,245.4 Gross profit 1,007.9 898.6 799.5 Selling, general and administrative expense 677.7 597.6 529.6 Special charges (credits) (2.5) 5.5 7.5 Operating income 332.7 295.5 262.4 Interest expense 41.0 38.6 39.2 Other income, net 2.1 13.1 .7 Income from consolidated operations before income taxes 293.8 270.0 223.9 Income taxes 89.0 83.4 69.4 Net income from consolidated operations 204.8 186.6 154.5 Income from unconsolidated operations 14.6 16.4 22.4 Minority interest 4.9 3.8 3.1 Net income from continuing operations 214.5 199.2 173.8 Discontinued operations, net of tax: Net income – 4.7 6.0 Gain on sale – 9.0 – Net income before cumulative effect of accounting change 214.5 212.9 179.8 Cumulative effect of accounting change, net of tax – (2.1) – Net income $ 214.5 $ 210.8 $ 179.8 Earnings per share – basic: Net income from continuing operations  $ 1.57 $ 1.43 $ 1.25 Net income from discontinued operations – .03 .04 Gain on sale of discontinued operations  – .06 – Cumulative effect of accounting change – (.02) – Net income  1.57 1.51 1.29 Earnings per share – diluted: Net income from continuing operations $ 1.52 $ 1.40 $ 1.22 Net income from discontinued operations – .03 .04 Gain on sale of discontinued operations  – .06 –  Cumulative effect of accounting change  – (.01) –  Net income  1.52 1.48 1.26 See Notes to Consolidated Financial Statements, pages 41-55. 37