Mead Johnson Nutrition Co. (MJN)

GLENVIEW, Ill.--(BUSINESS WIRE)--Mead Johnson Nutrition Company (NYSE: MJN) today announced its financial results for the quarter and year ended December 31, 2016. Highlights are as follows: Fourth quarter gross sales were 3% below the prior year quarter on a reported basis and in-line with the prior year quarter on a constant dollar(1) basis. Net sales were 7% below the prior year quarter on a reported basis and 3% below the prior year quarter on a constant dollar basis. The difference between gross sales and net sales growth rates reflects increases in ongoing trade investments. Full year 2016 net sales were 8% below the prior year on a reported basis and 3% below the prior year on a constant dollar basis. Excluding the impact of Venezuela, net sales for 2016 were 2% below the prior year on a constant dollar basis. Selling, general and administrative expenses decreased 19% in the fourth quarter compared to the prior year quarter as a result of the company's Fuel for Growth program. The program delivered savings of approximately $90 million in 2016, above the high end of the expected range. Total cost savings to date are $110 million, with approximately $180 million expected by the end of 2018. Earnings before Interest and Income Taxes (EBIT) was 15% higher in the fourth quarter compared to the prior year quarter. Excluding Specified Items and the impact of foreign exchange, non-GAAP EBIT was 4% above the prior year quarter. Earnings per Share (EPS) for the fourth quarter was $0.91. Excluding Specified Items, non-GAAP EPS for the fourth quarter was $0.78. EPS for 2016 was $2.92. Excluding Specified Items, non-GAAP EPS was $3.40 for the full year. For 2017, the company expects full year net sales to be in the range of -3% to 0% compared to 2016 on a reported basis, and in the range of -1% to +2% compared to 2016 on a constant dollar basis. Based upon recent spot rates, the estimated adverse foreign exchange impact is approximately 2%. Sales on a reported basis will be impacted by future foreign exchange changes which cannot be estimated. The company expects 2017 GAAP EPS to be in the range of $3.05 to $3.20. GAAP EPS guidance includes estimated adverse foreign exchange impacts of approximately $0.20, based on recent spot rates. GAAP EPS will be impacted by future foreign exchange changes and potentially significant future specified mark-to-market pension adjustments which cannot be estimated. Specified Items such as charges related to Fuel for Growth and other items are estimated to be $0.10 in 2017. The company expects non-GAAP EPS of $3.35 to $3.50 on a constant dollar basis. "In the fourth quarter we continued to make progress with a series of important strategic transitions in key markets. Our imported products again grew strongly in China - and we doubled our sales volume via e-commerce out of Hong Kong over the prior quarter. Though it will take some time for us to complete the transition phase we are currently in, we are encouraged by early signs our plans are working," said Kasper Jakobsen, Chief Executive Officer. (1) Constant dollar figures exclude the impact of changes in foreign currency exchange rates and are reconciled in the tables in the body of this earnings release and in the schedules titled “Reconciliation of non-GAAP to GAAP Results.” Non-GAAP results exclude Specified Items. For a description of Specified Items and a reconciliation of non-GAAP to GAAP, see the schedules titled “Reconciliation of non-GAAP to GAAP Results.” In Asia, fourth quarter sales were 7% below the prior year quarter on a reported basis. Sales were negatively impacted by adverse foreign exchange, mainly in China. On a constant dollar basis, sales were 4% below the prior year quarter. We continued to experience strong sales growth from our new product offerings in China, which was more than offset by reduced visitor numbers and channel transformation towards an e-commerce model in Hong Kong and reduced demand for locally manufactured products. Market share weakness and retail inventory related adjustments continued to negatively impact our sales in the Philippines. In Latin America, fourth quarter sales were 8% below the prior year quarter on a reported basis. Sales were negatively impacted by adverse foreign exchange, primarily in Argentina and Mexico. On a constant dollar basis, net sales were 4% above the prior year quarter. Price increases across the segment more than offset lower volume and suspended shipments into Venezuela. Excluding the impact of suspended shipments into Venezuela, constant dollar sales increased by 8%. In North America/Europe, fourth quarter sales were 6% below the prior year quarter on a reported basis and were 5% below on a constant dollar basis. Sales in the U.S. were negatively impacted by market share weakness. In Canada, the company's market share position continued to strengthen. In Europe, we continued to experience strong performance in our specialty and solutions offering. (a) All Specified Items are included in Corporate and Other. Fourth quarter EBIT was 15% above the prior year quarter on a reported basis. Excluding pension remeasurement and Fuel for Growth related charges, non-GAAP EBIT on a constant dollar basis was 4% above the prior year quarter. Gross margin percentage was slightly below the prior year quarter primarily due to increased promotional activities. Fuel for Growth resulted in approximately $18 million in lower operating expenses in 2016 compared to the prior year quarter. In Asia, fourth quarter EBIT decreased 15% on a reported basis and 7% on a constant dollar basis when compared to the prior year quarter. The decrease in EBIT was primarily due to the Company's strategic investments in the reshaping of our product portfolio and channel mix in China and Hong Kong, and the adverse market dynamics in the Philippines referenced above. In Latin America, fourth quarter EBIT increased 16% on a reported basis and 33% on a constant dollar basis when compared to the prior year quarter. The improvement seen was despite adverse foreign exchange impacts, primarily the depreciation of the Mexican Peso. EBIT benefited from higher sales on a constant dollar basis and lower dairy costs. In North America/Europe, fourth quarter EBIT decreased 5% on a reported basis and 1% on a constant dollar basis compared to the prior year quarter. Improved gross margin from lower dairy costs, reduced operating expenses and lower incentive based compensation partially offset lower sales. Corporate and Other expenses for the fourth quarter were 68% lower than the prior year quarter on a reported basis. Excluding the impact of Specified Items, Corporate and Other expenses were 18% below the prior year due to savings from the company's Fuel for Growth program. In Asia, full year sales were 9% below the prior year on a reported basis. Sales were negatively impacted by adverse foreign exchange, most notably in China. Sales were 5% below prior year on a constant dollar basis. Growth in mainland China was driven by new product offerings, reflecting a rapid change in consumer preferences toward imported premium products. China’s results were impacted by reduced visitor numbers and channel transformation towards an e-commerce model in Hong Kong. In addition, continued adverse market dynamics and retail inventory related adjustments negatively impacted our results in the Philippines. In Latin America, full year sales were 15% below the prior year on a reported basis. On a constant dollar basis, net sales were 1% below. Excluding the impact of reduced shipments to Venezuela, constant dollar sales increased 6%. The segment was negatively impacted by adverse foreign exchange, mainly in Mexico and Argentina. Price increases taken mainly in 2016 in key markets offset a substantial portion of the adverse foreign exchange impact across the segment. In North America/Europe, full year sales decreased 3% on a reported basis and 2% on a constant dollar basis compared to the prior year. In the U.S., the company experienced market share weakness, which was partially offset by strong growth and market share gains in both infant and children's products in Canada and strong performance in Europe. (a) All Specified Items are included in Corporate and Other. EBIT for 2016 declined 13% in 2016 compared to the prior year on a reported basis. EBIT in 2016 includes $82 million of charges related to the Venezuela business and adverse foreign exchange, partially offset by pension gains of $7 million. Excluding the impact of Specified Items and the impact of foreign exchange, non-GAAP EBIT improved 3%. Reduced gross profit was more than offset by lower operating expenses. Fuel for Growth resulted in a $90 million reduction in operating expenses. In Asia, full year EBIT decreased 18% on a reported basis and 12% on a constant dollar basis compared to the prior year. Adverse foreign exchange impacts were driven mainly by the Chinese Renminbi. EBIT was further impacted by reduced gross profit from lower sales volumes and investments to increase consumer awareness of Enfinitas, partially offset by lower dairy costs. In Latin America, full year EBIT decreased 11% on a reported basis and increased 10% on a constant dollar basis compared to the prior year, with the Venezuela business driving the decline in the segment. EBIT benefited from lower dairy costs, cost savings initiatives and lower advertising and promotion spending. In North America/Europe, full year EBIT increased 5% on a reported basis and increased 9% on a constant dollar basis compared to the prior year. EBIT increased due to lower dairy costs, reduced advertising and promotion expenses, lower incentive based compensation and savings from Fuel for Growth. Corporate and Other expenses for 2016 were 2% higher on a reported basis compared to the prior year primarily due to the long-lived asset impairment and devaluation charges related to the Venezuela business and charges associated with the Fuel for Growth program, partially offset by pension mark-to-market adjustments. Excluding the impact of these Specified Items, Corporate and Other expenses were 29% lower due primarily to cost reduction savings from Fuel for Growth. Cash Flow Items and Liquidity Cash and cash equivalents were $1,795.4 million at December 31, 2016 compared to $1,701.4 million at December 31, 2015. The company's net debt was $1,184.7 million at December 31, 2016, consisting of debt of $2,980.1 million less cash and cash equivalents. Cash and cash equivalents were negatively impacted in 2016 by $49.3 million of foreign currency devaluation, primarily in Venezuela. Cash generated from operating activities was $691.6 million for 2016 compared to $909.9 million in the prior year period. The decrease in 2016 is due to lower earnings, increased prepaid taxes, and lower levels of customer prepayments, partially offset by increases in accounts payables and reduced pension plan contributions. Cash used in investing activities included capital expenditures of $149.0 million for 2016. This included investments in capacity expansion for manufacturing facilities in the U.S. and Europe. Cash used in financing activities was $399.6 million for 2016 compared to $286.8 million in the prior year. The current year includes $100 million of share repurchases under the 2015 share repurchase authorization which has $400 million remaining as of December 31, 2016. In 2015, financing activities include cash outflows of $1,437.0 million for the repurchase of approximately 16.4 million shares of stock under the company's 2013 and 2015 share repurchase authorizations. These purchases were funded with long-term debt of $1.5 billion issued in 2015. Long-term debt was approximately $3.0 billion as of December 31, 2016 and 2015. Dividend payments were lower in 2016 due to the retirement of shares repurchased primarily under an accelerated repurchase agreement. Interest expense, net, for the year ended December 31, 2016 was $105.4 million, an increase from $65.0 million in 2015 due to the incremental interest on the long-term debt issued in November 2015, partially offset by the impact of related interest rate swaps. Outlook For 2017, the company expects full year net sales to be in the range of -3% to 0% compared to 2016 on a reported basis, and in the range of -1% to +2% compared to 2016 on a constant dollar basis. Based upon recent spot rates, the estimated adverse foreign exchange impact is approximately 2%. Sales on a reported basis will be impacted by future foreign exchange changes which cannot be estimated. The company expects 2017 GAAP EPS to be in the range of $3.05 to $3.20. GAAP EPS guidance includes estimated adverse foreign exchange impacts of approximately $0.20, based on recent spot rates. GAAP EPS will be impacted by future foreign exchange changes and potentially significant future specified mark-to-market pension adjustments which cannot be estimated. Specified Items such as charges related to Fuel for Growth and other items are estimated to be $0.10 in 2017. The company expects non-GAAP EPS of $3.35 to $3.50 on a constant dollar basis. Kasper Jakobsen continued, "2017 will see us complete our strategic transition program. We expect some pressure on both topline and costs in the beginning of the year, and the impact of currency and rising dairy costs will likely weigh on results. The impact will be partially offset by momentum behind productivity initiatives in both cost of goods and operating expenses. As previously stated, we expect only very modest growth in both Sales and EPS on a constant dollar basis - with performance strengthening through the second half of the year." Conference Call Scheduled Mead Johnson will host a conference call at 8:30 a.m. U.S. Central Time, during which company executives will review the financial results for the fourth quarter and full year 2016. The call will be broadcast with accompanying slides over the Internet at http://investors.meadjohnson.com. Security analysts and investors wishing to participate by telephone should call 877-359-9508, pass code: Mead Johnson. Callers outside of North America should call +1-224-357-2393 to be connected. A replay of the conference call will be available through 11:00 p.m. U.S. Central Time Sunday, March 12, 2017, by calling 855-859-2056, or outside of North America by calling +1-404-537-3406, passcode: 37021489. The replay will also be available at meadjohnson.com. Forward-Looking Statements Certain statements in this news release are forward-looking as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by the fact they use words such as “should,” “expect,” “anticipate,” “estimate,” “target,” “may,” “project,” “guidance,” “intend,” “plan,” “believe” and other words and terms of similar meaning and expression. Such statements are likely to relate to, among other things, a discussion of goals, plans and projections regarding financial position, results of operations, cash flows, market position, product development, product approvals, sales efforts, expenses, capital expenditures, performance or results of current and anticipated products and the outcome of contingencies such as legal proceedings and financial results. Forward-looking statements can also be identified by the fact that they do not relate strictly to historical or current facts. Such forward-looking statements are based on current expectations that involve inherent risks, uncertainties and assumptions that may cause actual results to differ materially from expectations as of the date of this news release. These risks include, but are not limited to: (1) the ability to sustain brand strength, particularly the Enfa family of brands; (2) the effect on the company’s reputation of real or perceived quality issues; (3) the effect of regulatory restrictions related to the company’s products; (4) the adverse effect of commodity costs; (5) increased competition from branded, private label, store and economy-branded products; (6) the effect of an economic downturn on consumers’ purchasing behavior and customers’ ability to pay for product; (7) inventory reductions by customers; (8) the adverse effect of changes in foreign currency exchange rates; (9) the effect of changes in economic, political and social conditions in the markets where we operate; (10) changing consumer preferences; (11) the possibility of changes in the WIC program, or participation in WIC(2); (12) legislative, regulatory or judicial action that may adversely affect the company’s ability to advertise its products, maintain product margins, or negatively impact the company’s reputation or result in fines or penalties that decrease earnings; and (13) the ability to develop and market new, innovative products. For additional information regarding these and other factors, see the company’s filings with the United States Securities and Exchange Commission (the “SEC”), including its most recent Annual Report on Form 10-K, which filings are available upon request from the SEC or at www.meadjohnson.com. The company cautions readers not to place undue reliance on any forward-looking statements, which speak only as of the date made. The company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. About Mead Johnson Mead Johnson, a global leader in pediatric nutrition, develops, manufactures, markets and distributes more than 70 products in over 50 markets worldwide. The company’s mission is to nourish the world’s children for the best start in life. The Mead Johnson name has been associated with science-based pediatric nutrition products for over 100 years. The company’s “Enfa” family of brands, including Enfamil® infant formula, is the world’s leading brand franchise in pediatric nutrition. For more information, go to www.meadjohnson.com. (2) The Special Supplemental Nutrition Program for Women, Infants and Children (WIC) is a federal assistance program of the Food and Nutrition Services (FNS) of the United States Department of Agriculture (USDA). (a) The numerator for basic and diluted earnings per share is net earnings attributable to shareholders. Net earnings has been reduced by dividends and undistributed earnings attributable to unvested share based incentive plan awards. The denominator for basic earnings per share is the weighted-average shares outstanding during the period. The denominator for diluted earnings per share is the weighted-average shares outstanding adjusted for the effect of dilutive stock options and performance share awards. Mead Johnson Nutrition Company Financial Information (UNAUDITED) Reconciliation of Non-GAAP to GAAP Results This news release contains non-GAAP financial measures, each of which is listed in the tables below. The items included in GAAP measures, but excluded for the purpose of determining the non-GAAP financial measures, include significant income/expenses not indicative of underlying operating results, including the related tax effect and, at times, the impact of foreign exchange. The non-GAAP measures represent an indication of the company’s underlying operating results and are intended to enhance an investor’s overall understanding of the company’s financial performance and ability to compare the company’s performance to that of its peer companies. In addition, this information is among the primary indicators the company uses as a basis for evaluating company performance, setting incentive compensation targets and planning and forecasting of future periods. This information is not intended to be considered in isolation or as a substitute for financial measures prepared in accordance with GAAP. Tables that reconcile non-GAAP to GAAP disclosure follow below. Constant Dollar Certain measures in this release are presented excluding the impact of foreign currency exchange (constant dollar). To present this information, current period results for entities reporting in currencies other than United States dollars are translated into United States dollars at the average exchange rates in effect during the corresponding period of the prior fiscal year, rather than the actual average exchange rates in effect during the current fiscal year. The company believes that these constant dollar measures provide useful information to investors because they provide transparency to underlying performance by excluding the effect that foreign currency exchange rate fluctuations have on period-to-period comparability given volatility in foreign currency exchange markets. The primary currencies which impact the company are: the Argentine peso, the Chinese renminbi, the Hong Kong dollar, the Mexican peso and the Philippine peso. Specified Items Non-GAAP measures presented within this release exclude Specified Items. The company considers Specified Items to be significant income/expense items as not indicative of underlying operating results, including the related tax effect. See below for a description of Specified Items and the related tax effect. Constant dollar gross sales Constant dollar net sales Non-GAAP constant dollar gross margin Non-GAAP constant dollar selling, general and administrative expenses Constant dollar segment EBIT 9% Non-GAAP Corporate and Other EBIT Non-GAAP EBIT and constant dollar EBIT )% )% Non-GAAP diluted EPS — % * Figures may not sum due to rounding. Consolidated Net Debt Non-GAAP Guidance (a) Pension Remeasurement: When incurred, gains and losses related to the remeasurement of defined benefit pension and post-employment benefit plans are classified as Specified Items and excluded from non-GAAP performance measures. Pension remeasurement reflects changes in the pension assets and liabilities above what was estimated and included in periodic costs. Factors beyond our control such as changes in discount rates, market volatility and mortality assumptions drive the remeasurement amount. The majority of our pension and post-employment plans are frozen, and therefore the benefit provided to such employees is not related to our underlying operations. (b) Fuel for Growth: The Company approved a plan to implement a business productivity program referred to as “Fuel for Growth,” during the third quarter of 2015, which is anticipated to be implemented over a three-year period. Fuel for Growth is designed to improve operating efficiencies and reduce costs. Fuel for Growth is expected to improve profitability and create additional investments behind brand building and growth initiatives. Fuel for Growth focuses on the optimization of resources within various operating functions and certain third party costs across the business. (c) Investigation Accrual: An accrual made in connection with the SEC settlement disclosed by the company in July 2015. (d) Venezuela: Foreign exchange losses, long-lived asset impairments and other asset write-offs in Venezuela. (e) All Other: Primarily includes restructuring costs in 2016 and a marketable securities gain in 2015.

GLENVIEW, Ill.--(BUSINESS WIRE)--Mead Johnson Nutrition Company (NYSE: MJN) will release its fourth quarter and full year 2016 earnings on Thursday, January 26, 2017, before the market opens. The company will host a conference call at 8:30 a.m. U.S. Central Time that same day, during which company executives will review the financial results and respond to questions from analysts and investors. The call will be broadcast with accompanying slides over the Internet at http://investors.meadjohnson.com. Security analysts and investors wishing to participate by telephone should call 877-359-9508, passcode: Mead Johnson. Callers outside of North America should call +1-224-357-2393 to be connected. A replay of the conference call will be available through 11:00 p.m. U.S. Central Time Sunday, March 12, 2017, by calling 855-859-2056, or outside of North America by calling +1-404-537-3406, passcode: 37021489. The replay will also be available at meadjohnson.com. About Mead Johnson Mead Johnson, a global leader in pediatric nutrition, develops, manufactures, markets and distributes more than 70 products in over 50 countries worldwide. The company's mission is to nourish the world’s children for the best start in life. The Mead Johnson name has been associated with science-based pediatric nutrition products for over 100 years. The company's "Enfa" family of brands, including Enfamil® infant formula, is the world's leading brand franchise in pediatric nutrition. For more information, visit meadjohnson.com.

GLENVIEW, Ill.--(BUSINESS WIRE)--Mead Johnson Nutrition Company (NYSE: MJN) today announced its financial results for the quarter and nine months ended September 30, 2016. Highlights are as follows: Gross sales were 2% below the prior year quarter on a reported basis and 1% higher on a constant dollar(1) basis. Net sales were 4% below the prior year quarter on a reported basis and in-line with the prior year quarter on a constant dollar basis. Momentum behind new product launches in China and price increases within each segment offset competitive challenges. Excluding the impact of Venezuela, net sales were 1% above the prior year quarter on a constant dollar basis. Selling, general and administrative expenses decreased 12% compared to the prior year quarter as a result of the company's Fuel for Growth program. The company's Fuel for Growth program is expected to deliver operating expense savings towards the high end of the previously announced $75 million to $80 million range for 2016. Total cost savings of approximately $180 million are expected by 2018. Earnings before Interest and Income Taxes (EBIT) was 1% higher than the prior year quarter. Excluding Specified Items and the impact of foreign exchange, non-GAAP EBIT was 9% above the prior year quarter. Earnings per Share (EPS) for the quarter was $0.80. Excluding Specified Items, non-GAAP EPS for the quarter was $0.87. EPS for the nine months ending September 30, 2016 was $2.02. Excluding Specified Items, non-GAAP EPS for the nine months ending September 30, 2016 was $2.63. The company now expects full year net sales of 6% to 7% below the prior year on a reported basis and 2% to 3% below the prior year on a constant dollar basis. Sales may be lower due to market share weaknesses in several markets, notably in the U.S., as well as continued macroeconomic challenges in several emerging markets. The company now expects 2016 GAAP EPS to be between $2.80 to $2.87. GAAP EPS guidance may be impacted by potentially significant future mark-to-market pension adjustments which cannot be estimated and are classified as a Specified Item. The company now expects non-GAAP EPS between $3.43 to $3.50. Specified Items include charges related to Fuel for Growth and our Venezuela business. This guidance includes an estimated adverse impact of currency exchange rates, which is now expected to be approximately $0.30 per share. Kasper Jakobsen, Chief Executive Officer, said, "We continue to make progress against our global plan. Most critically, we have made substantial progress in China. We are operating in a challenging global environment and it is now clear that our growth will occur more slowly than we had planned. In this environment, we have chosen to revise our full year guidance for both top and bottom line numbers." (1) Constant dollar figures exclude the impact of changes in foreign currency exchange rates and are reconciled in the tables in the body of this earnings release and in the schedules titled “Reconciliation of non-GAAP to GAAP Results.” Non-GAAP results exclude Specified Items. For a description of Specified Items and a reconciliation of non-GAAP to GAAP, see the schedules titled “Reconciliation of non-GAAP to GAAP Results.” In Asia, sales were 3% below the prior year quarter on a reported basis. Sales were negatively impacted by adverse foreign currency translation, mainly in China. On a constant dollar basis, sales were in-line with the prior year quarter. We experienced strong sales growth in China, reflecting positive momentum from our new product offerings and recovery of prior quarter customs clearing delays. Continued adverse market dynamics negatively impacted our results in other Asian markets, including the Philippines. In Latin America, sales were 13% below the prior year quarter on a reported basis. Sales were negatively impacted by adverse foreign currency translation, primarily in Argentina and Mexico. On a constant dollar basis, net sales were in-line with the prior year quarter. Price increases mainly taken in 2016 across the segment offset volume losses and suspended shipments into Venezuela. Excluding the impact of suspended shipments into Venezuela, constant dollar sales increased by 5%. In North America/Europe, sales were 1% below the prior year quarter on a reported basis and were flat on a constant dollar basis. Sales in the U.S. were negatively impacted by continued market share weakness and increased competitive activities. The company's market share position strengthened during the quarter in Canada. (a) All Specified Items are included in Corporate and Other. EBIT was 1% above the prior year quarter on a reported basis. Excluding pension remeasurement and Fuel for Growth related charges, non-GAAP EBIT on a constant dollar basis was 9% above the prior year quarter. Gross margin was in-line with the prior year as adverse foreign exchange impacts were offset by lower dairy costs. Fuel for Growth resulted in $20 million in lower operating expenses in 2016 compared to the prior year quarter. In Asia, EBIT decreased 13% on a reported basis and 7% on a constant dollar basis when compared to the prior year quarter. The decrease in EBIT was primarily due to investments to increase consumer awareness of Enfinitas. In Latin America, EBIT increased 3% on a reported basis and 30% on a constant dollar basis when compared to the prior year quarter. Foreign currency had an adverse impact on EBIT, primarily due to devaluation of the Mexican Peso. EBIT benefited from lower dairy costs and reduced advertising and promotion spending when compared to a high level of spending in the prior year to support product launches. In North America/Europe, EBIT increased 6% on a reported basis and 9% on a constant dollar basis when compared to the prior year quarter. Improved gross margin from lower dairy costs and reduced operating expenses contributed to the increase in EBIT. Corporate and Other expenses were 22% lower than the prior year quarter on a reported basis. Excluding the impact of Specified Items, Corporate and Other expenses were 32% below the prior year due to savings from the company's Fuel for Growth program. In Asia, sales were 10% below the prior year period on a reported basis. Sales were negatively impacted by adverse foreign currency translation, most notably in China. Sales were 6% below the prior year on a constant dollar basis primarily due to channel shifts in China and the rapid change in consumer preferences toward imported premium products. In addition, continued adverse market dynamics negatively impacted our results in the Philippines. In Latin America, sales were 17% below the prior year period on a reported basis. On a constant dollar basis, net sales were 3% below the prior year. The segment was negatively impacted by adverse currency translation, mainly in Mexico and Argentina. Excluding the impact of reduced shipments to Venezuela, constant dollar sales increased 6%. Price increases mainly taken in 2016 in key markets offset a substantial portion of the adverse foreign exchange impact across the segment. In North America/Europe, sales decreased 1% on a reported basis and were flat on a constant dollar basis compared to the prior year period. In the U.S., the company experienced increased competitive activities and category share weakness, which was partially offset by strong growth and market share gains in both infant and children's products in Canada. (a) All Specified Items are included in Corporate and Other. EBIT declined 20% in 2016 compared to the prior year period. EBIT in 2016 includes an $81 million charge related to the Venezuela business, $23 million of pension remeasurement losses and adverse foreign exchange. Excluding the impact of Specified Items and the impact of foreign exchange, non-GAAP EBIT improved 2%. Reduced gross profit was more than offset by lower operating expenses. Fuel for Growth resulted in a $67 million reduction in operating expenses. In Asia, EBIT decreased 19% on a reported basis and 13% on a constant dollar basis when compared to the prior year period. Adverse foreign exchange impacts were driven mainly by the Chinese Renminbi. EBIT was further impacted by reduced gross profit from lower sales volumes and investments to increase consumer awareness of Enfinitas. In Latin America, EBIT decreased 17% on a reported basis and increased 2% on a constant dollar basis when compared to the prior year period, with the Venezuela business driving the decline in the segment. Lower gross profit was more than offset by cost savings initiatives and lower advertising and promotion spending. In North America/Europe, EBIT increased 9% on a reported basis compared to the prior year period. EBIT increased due to lower dairy costs, reduced advertising and promotion expenses and savings from Fuel for Growth. Corporate and Other expenses were 22% higher on a reported basis compared to the prior year period primarily due to the long-lived asset impairment and devaluation charges related to the Venezuela business and charges associated with the Fuel for Growth program and pension mark-to-market adjustments. Excluding the impact of these Specified Items, Corporate and Other expenses were 32% lower due primarily to cost reduction savings from Fuel for Growth. Cash Flow Items and Liquidity Cash and cash equivalents were $1,843.2 million at September 30, 2016 compared to $1,701.4 million at December 31, 2015. The company's net debt was $1,167.0 million at September 30, 2016, consisting of debt of $3,010.2 million less cash and cash equivalents. Cash was negatively impacted in the nine months ended September 30, 2016 by $33.0 million of foreign currency devaluation, primarily in Venezuela. Cash generated from operating activities was $510.7 million for the nine months ended September 30, 2016 compared to $608.9 million in the prior year period. Cash flows from operating activities were negatively impacted by lower earnings in the current year and increases in trade and other receivables. Cash used in investing activities included capital expenditures of $110.2 million for the nine months of 2016. This included investments in capacity expansion for manufacturing facilities in the U.S. and Europe. Cash used in financing activities was $225.9 million for the nine months ended September 30, 2016 compared to $374.0 million in the prior year period. The prior year period included the repurchase of $437 million of shares, partially funded by $322 million of borrowings under the revolver, and cash used to acquire an incremental 10% of the company's business in Argentina. Dividend payments were lower in the current year due to the retirement of shares repurchased primarily under the Accelerated Repurchase Agreement ("ASR"). Interest expense, net, for the nine months ended September 30, 2016 was $78.9 million, an increase from $42.5 million in the prior year period due to the incremental interest on the long-term debt issued in November 2015, partially offset by the impact of related interest rate swaps. Outlook The company has revised its net sales outlook and now expects full year net sales of 6% to 7% below the prior year on a reported basis and 2% to 3% below the prior year on a constant dollar basis. Sales may be lower due to market share weaknesses in several markets, notably in the U.S., as well as continued macroeconomic challenges in several emerging markets. The company has revised its 2016 GAAP EPS guidance to $2.80 to $2.87 due to lower sales. GAAP EPS guidance may be impacted by potentially significant future mark-to-market pension adjustments which cannot be estimated and are classified as a Specified Item. The company now expects non-GAAP EPS between $3.43 to $3.50. Specified Items include charges related to Fuel for Growth and our Venezuela business. This guidance includes an estimated adverse impact of current exchange rates, which is now expected to be approximately $0.30 per share. Kasper Jakobsen continued, "Given known headwinds over the next year, we anticipate only modest improvements to both our underlying sales and earnings per share in 2017. In this context, continued strong performance against our expense reduction targets will support our investment in longer term growth initiatives and protect our 'best in class' level of profitability. In the longer term, underlying fundamentals for our core category are still supportive of our growth ambitions. Hence, we remain committed to making the necessary investments in our future." Conference Call Scheduled Mead Johnson will host a conference call at 8:30 a.m. U.S. Central Time, during which company executives will review the financial results for the third quarter and first nine months of 2016. The call will be broadcast with accompanying slides over the Internet at http://investors.meadjohnson.com. Security analysts and investors wishing to participate by telephone should call 877-359-9508, pass code: Mead Johnson. Callers outside of North America should call +1-224-357-2393 to be connected. A replay of the conference call will be available through 11:00 p.m. U.S. Central Time Sunday, December 11, 2016, by calling 855-859-2056, or outside of North America by calling +1-404-537-3406, passcode: 91365402. The replay will also be available at meadjohnson.com. Forward-Looking Statements Certain statements in this news release are forward-looking as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by the fact they use words such as “should,” “expect,” “anticipate,” “estimate,” “target,” “may,” “project,” “guidance,” “intend,” “plan,” “believe” and other words and terms of similar meaning and expression. Such statements are likely to relate to, among other things, a discussion of goals, plans and projections regarding financial position, results of operations, cash flows, market position, product development, product approvals, sales efforts, expenses, capital expenditures, performance or results of current and anticipated products and the outcome of contingencies such as legal proceedings and financial results. Forward-looking statements can also be identified by the fact that they do not relate strictly to historical or current facts. Such forward-looking statements are based on current expectations that involve inherent risks, uncertainties and assumptions that may cause actual results to differ materially from expectations as of the date of this news release. These risks include, but are not limited to: (1) the ability to sustain brand strength, particularly the Enfa family of brands; (2) the effect on the company’s reputation of real or perceived quality issues; (3) the effect of regulatory restrictions related to the company’s products; (4) the adverse effect of commodity costs; (5) increased competition from branded, private label, store and economy-branded products; (6) the effect of an economic downturn on consumers’ purchasing behavior and customers’ ability to pay for product; (7) inventory reductions by customers; (8) the adverse effect of changes in foreign currency exchange rates; (9) the effect of changes in economic, political and social conditions in the markets where we operate; (10) changing consumer preferences; (11) the possibility of changes in the WIC program, or participation in WIC(2); (12) legislative, regulatory or judicial action that may adversely affect the company’s ability to advertise its products, maintain product margins, or negatively impact the company’s reputation or result in fines or penalties that decrease earnings; and (13) the ability to develop and market new, innovative products. For additional information regarding these and other factors, see the company’s filings with the United States Securities and Exchange Commission (the “SEC”), including its most recent Annual Report on Form 10-K, which filings are available upon request from the SEC or at www.meadjohnson.com. The company cautions readers not to place undue reliance on any forward-looking statements, which speak only as of the date made. The company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. About Mead Johnson Mead Johnson, a global leader in pediatric nutrition, develops, manufactures, markets and distributes more than 70 products in over 50 markets worldwide. The company’s mission is to nourish the world’s children for the best start in life. The Mead Johnson name has been associated with science-based pediatric nutrition products for over 100 years. The company’s “Enfa” family of brands, including Enfamil® infant formula, is the world’s leading brand franchise in pediatric nutrition. For more information, go to www.meadjohnson.com. (2) The Special Supplemental Nutrition Program for Women, Infants and Children (WIC) is a federal assistance program of the Food and Nutrition Services (FNS) of the United States Department of Agriculture (USDA). (a) The numerator for basic and diluted earnings per share is net earnings attributable to shareholders. Net earnings has been reduced by dividends and undistributed earnings attributable to unvested share based incentive plan awards. The denominator for basic earnings per share is the weighted-average shares outstanding during the period. The denominator for diluted earnings per share is the weighted-average shares outstanding adjusted for the effect of dilutive stock options and performance share awards. Mead Johnson Nutrition Company Financial Information (UNAUDITED) Reconciliation of Non-GAAP to GAAP Results This news release contains non-GAAP financial measures, each of which is listed in the tables below. The items included in GAAP measures, but excluded for the purpose of determining the non-GAAP financial measures, include significant income/expenses not indicative of underlying operating results, including the related tax effect and, at times, the impact of foreign exchange. The non-GAAP measures represent an indication of the company’s underlying operating results and are intended to enhance an investor’s overall understanding of the company’s financial performance and ability to compare the company’s performance to that of its peer companies. In addition, this information is among the primary indicators the company uses as a basis for evaluating company performance, setting incentive compensation targets and planning and forecasting of future periods. This information is not intended to be considered in isolation or as a substitute for financial measures prepared in accordance with GAAP. Tables that reconcile non-GAAP to GAAP disclosure follow below. Constant Dollar Certain measures in this release are presented excluding the impact of foreign currency exchange (constant dollar). To present this information, current period results for entities reporting in currencies other than United States dollars are translated into United States dollars at the average exchange rates in effect during the corresponding period of the prior fiscal year, rather than the actual average exchange rates in effect during the current fiscal year. The company believes that these constant dollar measures provide useful information to investors because they provide transparency to underlying performance by excluding the effect that foreign currency exchange rate fluctuations have on period-to-period comparability given volatility in foreign currency exchange markets. The primary currencies which impact the company are: the Argentine peso, the Chinese renminbi, the Hong Kong dollar, the Mexican peso and the Philippine peso. Specified Items Non-GAAP measures presented within this release exclude Specified Items. The company considers Specified Items to be significant income/expense items as not indicative of underlying operating results, including the related tax effect. See the company's Quarterly Report on Form 10-Q for the period ended September 30, 2016 for a description of Specified Items and the related tax effect. Mead Johnson Nutrition Company Financial Information (UNAUDITED) Reconciliation of Non-GAAP to GAAP Results Constant dollar gross sales Constant dollar net sales 0% 0% 0% 0% 0% Non-GAAP constant dollar gross margin Non-GAAP constant dollar selling, general and administrative expenses Constant dollar segment EBIT Non-GAAP Corporate and Other EBIT Non-GAAP EBIT and constant dollar EBIT Non-GAAP diluted EPS Consolidated Net Debt Non-GAAP Guidance (0.63 ) (0.63 ) (a) Pension Remeasurement: When incurred, gains and losses related to the remeasurement of defined benefit pension and post-employment benefit plans are classified as Specified Items and excluded from non-GAAP performance measures. Pension remeasurement reflects changes in the pension assets and liabilities above what was estimated and included in periodic costs. Factors beyond our control such as changes in discount rates, market volatility and mortality assumptions drive the remeasurement amount. The majority of our pension and post-employment plans are frozen, and therefore the benefit provided to such employees is not related to our underlying operations. (b) Fuel for Growth: The Company approved a plan to implement a business productivity program referred to as “Fuel for Growth,” during the third quarter of 2015, which is anticipated to be implemented over a three-year period. Fuel for Growth is designed to improve operating efficiencies and reduce costs. Fuel for Growth is expected to improve profitability and create additional investments behind brand building and growth initiatives. Fuel for Growth focuses on the optimization of resources within various operating functions and certain third party costs across the business. (c) Investigation Accrual: An accrual made in connection with the SEC settlement disclosed by the company in July 2015. (d) Venezuela: Foreign exchange losses, long-lived asset impairments and other asset write-offs in Venezuela. (e) All Other: Primarily includes restructuring costs in 2016 and a marketable securities gain in 2015.

GLENVIEW, Ill.--(BUSINESS WIRE)--Mead Johnson Nutrition Company (NYSE: MJN) will release its third quarter and nine-month 2016 earnings on Thursday, October 27, 2016, before the market opens. The company will host a conference call at 8:30 a.m. U.S. Central Time that same day, during which company executives will review the financial results and respond to questions from analysts and investors. The call will be broadcast with accompanying slides over the Internet at http://investors.meadjohnson.com. Security analysts and investors wishing to participate by telephone should call 877-359-9508, passcode: Mead Johnson. Callers outside of North America should call +1-224-357-2393 to be connected. A replay of the conference call will be available through 11:00 p.m. U.S. Central Time Sunday, December 11, 2016, by calling 855-859-2056, or outside of North America by calling +1-404-537-3406, passcode: 91365402. The replay will also be available at meadjohnson.com. About Mead Johnson Mead Johnson, a global leader in pediatric nutrition, develops, manufactures, markets and distributes more than 70 products in over 50 countries worldwide. The company's mission is to nourish the world’s children for the best start in life. The Mead Johnson name has been associated with science-based pediatric nutrition products for over 100 years. The company's "Enfa" family of brands, including Enfamil® infant formula, is the world's leading brand franchise in pediatric nutrition. For more information, visit meadjohnson.com.

GLENVIEW, Ill.--(BUSINESS WIRE)--Mead Johnson Nutrition Company (NYSE: MJN) today announced its financial results for the quarter and six months ended June 30, 2016. Highlights are as follows: Gross sales were 5% below the prior year quarter on a reported basis and flat on a constant dollar(1) basis. Net sales were 9% below the prior year quarter on a reported basis and 4% below on a constant dollar basis. Adverse foreign currency, new product testing standards for imported goods in China, and an increase in trade investments in China all reduced net sales in the current quarter. Selling, general and administrative expenses in the second quarter decreased 10% compared to the prior year quarter. Excluding Specified Items and the impact of foreign exchange, non-GAAP(1) selling, general and administrative expenses were down 9% compared to the prior year quarter as a result of the company's Fuel for Growth program. Additional savings opportunities of $60 million have been identified within Fuel for Growth, resulting in expected total cost savings of approximately $180 million by 2018. The program is ahead of schedule and is now expected to deliver approximately $75 to $80 million of savings in 2016. Earnings before Interest and Income Taxes (EBIT) was 6% below the prior year quarter. Excluding Specified Items and the impact of foreign exchange, non-GAAP EBIT was 10% above the prior year quarter. Earnings per Share (EPS) for the second quarter was $0.83. Excluding Specified Items, non-GAAP EPS was $0.88. EPS for the six months ending June 30, 2016 was $1.21. Excluding Specified Items, non-GAAP EPS was $1.75. The company has revised its net sales outlook and now expects full year net sales of 5% to 7% below the prior year on a reported basis and 0% to 2% below the prior year on a constant dollar basis. The revision is driven by increased customs processes at border points in China, lower-than-expected U.S. market share in the first half of the year, as well as increased trade investments in China. The company reaffirms 2016 GAAP EPS guidance of $2.91 to $3.03 as improved gross margin and lower operating costs are expected to offset the impact of lower sales. GAAP EPS guidance is likely to be impacted by potentially significant future mark-to-market pension adjustments which cannot be estimated and are classified as a Specified Item. The company reaffirms non-GAAP EPS guidance of $3.48 to $3.60. Specified Items include charges related to Fuel for Growth and our Venezuela business. This guidance includes an estimated adverse impact of currency exchange rates, which is now expected to be approximately $0.35 per share. "As we move through this year, I am pleased that we continue to deliver against our profit objectives despite a challenging global operating environment," said Kasper Jakobsen, Chief Executive Officer. "We are making good progress with our portfolio and channel transformation in China despite near-term challenges. We are aligning the organization behind more ambitious operating cost reductions in support of both our growth and value creation strategies." (1) Constant dollar figures exclude the impact of changes in foreign currency exchange rates and are reconciled in the tables in the body of this earnings release and in the schedules titled “Reconciliation of non-GAAP to GAAP Results.” Non-GAAP results exclude Specified Items. For a description of Specified Items and a reconciliation of non-GAAP to GAAP, see the schedules titled “Reconciliation of non-GAAP to GAAP Results.” Net Sales % of Total % of Total Constant Dollar ForeignExchange In Asia, sales were 11% below the prior year quarter on a reported basis. Sales were negatively impacted by adverse foreign currency translation, mainly in China. On a constant dollar basis, sales were 7% below the prior year quarter, primarily driven by an increase in trade investments in China, a portion of which were reallocated from advertising and promotion spending. Additional impacts to sales included new product testing for imported goods in China towards the end of the second quarter and market share losses on our mid-priced children's products in the Philippines. In Latin America, sales were 16% below the prior year quarter on a reported basis. On a constant dollar basis, net sales were 3% below the prior year quarter. The segment was negatively impacted by adverse currency translation, mainly in Mexico and Argentina. Momentum in Mexico and Colombia did not fully offset macroeconomic challenges in Brazil, Venezuela and Argentina. Excluding the impact of suspended shipments into Venezuela, constant dollar sales increased by 4%. Price increases taken in 2016 in key markets across the segment offset a substantial portion of the adverse foreign exchange impact across the segment. In North America/Europe, sales were 1% below the prior year quarter on a reported basis and were flat on a constant dollar basis. In the U.S., the company experienced lower-than-expected market share, which was partially offset by market share gains in both infant and children's products in Canada. % Change Due to % of Sales Constant Dollar Foreign Exchange (a) All Specified Items are included in Corporate and Other. EBIT was 6% below the prior year quarter on a reported basis. Excluding pension remeasurement charges of $13 million in 2016 compared to gains of approximately $2 million in 2015, non-GAAP EBIT on a constant dollar basis was 10% above the prior year quarter. A 90 basis point reduction in gross margin was driven by the pension remeasurement charge and adverse foreign exchange. Excluding these impacts, non-GAAP gross margin increased 120 basis points due to lower dairy input costs. Fuel for Growth resulted in approximately $29 million in lower operating expenses in 2016 compared to the prior year quarter. In Asia, EBIT decreased 12% on a reported basis and 4% on a constant dollar basis when compared to the prior year quarter. The decrease in EBIT was primarily due to adverse foreign exchange. Lower sales were partially offset by lower dairy input costs and lower operating expenses. In Latin America, EBIT decreased 19% on a reported basis and 7% on a constant dollar basis when compared to the prior year quarter. Foreign currency had an adverse impact on EBIT, primarily due to the Mexican Peso. Lower operating expenses, driven by lower advertising and promotion expenses and cost savings, partially offset the decline in sales. In North America/Europe, EBIT increased 16% on a reported basis and 21% on a constant dollar basis when compared to the prior year quarter. Gross margin improvements and reduced operating expenses drove the increase in EBIT despite a reduction in sales. Corporate and Other expenses were 1% lower compared to the prior year quarter, which includes Specified Items, most notably the pension remeasurement charge. Excluding the impact of Specified Items, Corporate and Other expenses were 35% lower than the prior year quarter due to savings from Fuel for Growth. % of Total % of Total Constant Dollar ForeignExchange In Asia, sales were 13% below the prior year period on a reported basis. Sales were negatively impacted by adverse foreign currency translation, mainly in China. Sales were 9% below the prior year quarter on a constant dollar basis due to a shift in consumer preferences towards imported products, increased customs processes at border points in China, and market share losses in mid-priced children's products in the Philippines. In Latin America, sales were 19% below the prior year period on a reported basis. On a constant dollar basis, net sales were 4% below the prior year. The segment was negatively impacted by adverse currency translation, mainly in Mexico and Argentina. Excluding the impact of suspended shipments into Venezuela, constant dollar sales increased 6%. Price increases taken in 2016 in key markets across the segment offset a substantial portion of the adverse foreign exchange impact across the segment. In North America/Europe, sales decreased slightly on a reported and constant dollar basis compared to the prior year period. In the U.S., the company experienced increased competitive activities, which were partially offset by strong growth and market share gains in Canada driven by both infant and children's products. % of Sales % of Sales Constant Dollar ForeignExchange (a) All Specified Items are included in Corporate and Other. EBIT declined 29% in the first half of 2016 compared to the prior year period. EBIT in 2016 includes $78 million of charges related to the Venezuela business and $19 million of pension remeasurement losses as well as adverse foreign exchange. Excluding the impact of Specified Items and the impact of foreign exchange, non-GAAP EBIT declined 1%. Reduced gross profit from lower sales was partially offset by lower operating expenses. Fuel for Growth resulted in a $47 million reduction in operating expenses. In Asia, EBIT decreased 21% on a reported basis and 15% on a constant dollar basis when compared to the prior year period. Adverse foreign exchange impacts were driven mainly by China. EBIT was further impacted by lower sales and increased brand investments to support newly launched products in China. In Latin America, EBIT decreased 25% on a reported basis and 9% on a constant dollar basis when compared to the prior year period, with the Venezuela business driving a 19% reduction in the segment. Lower sales were partially offset by strong performance in Mexico, cost savings initiatives and lower advertising and promotion, all of which benefited EBIT in the period. In North America/Europe, EBIT increased 11% on a reported basis compared to the prior year period. Despite lower sales, EBIT increased due to lower dairy costs. Reduced advertising and promotion expenses and savings from Fuel for Growth also contributed to the improvement in EBIT. Corporate and Other expenses were 44% higher on a reported basis compared to the prior year period primarily due to the long-lived asset impairment and devaluation charges related to the Venezuela business during the first quarter of 2016, as well as Fuel for Growth and pension mark-to-market charges. Excluding the impact of these Specified Items, Corporate and Other expenses improved 32% due to savings from Fuel for Growth. Cash Flow Items and Liquidity Cash and cash equivalents were $1,716.0 million at June 30, 2016 compared to $1,701.4 million at December 31, 2015. The company's net debt was $1,309.7 million at June 30, 2016, consisting of debt of $3,025.7 million less cash and cash equivalents. Cash was negatively impacted in the six months ended June 30, 2016 by $32 million of foreign currency devaluation, primarily in Venezuela. Cash generated from operating activities was $276.1 million for the six months ended June 30, 2016 compared to $456.5 million in the prior year period. Cash flows from operating activities were negatively impacted in the current year by $94 million of other working capital increases, higher trade investments and interest payments. Cash used in investing activities included capital expenditures of $80.8 million for the first six months of 2016. This included investments in capacity expansion for manufacturing facilities in the U.S. and Europe. Cash used in financing activities was $148.9 million for the six months ended June 30, 2016 compared to $181.6 million in the prior year period. Activities in the current year and the prior year were primarily related to dividend payments which were lower in the current year due to the retirement of shares repurchased under the Accelerated Repurchase Agreement ("ASR"). The prior year period included cash paid to acquire an incremental 10% of the company's business in Argentina. Interest expense, net, for the six months ended June 30, 2016 was $52.6 million, an increase from $27.7 million in the prior year period due to the incremental interest on the long-term debt issued in November 2015, partially offset by the impact of related interest rate swaps. On June 30, 2016, the company received 2.1 million shares to settle the ASR, bringing the total delivery of shares under this program to 12.8 million. The ASR was entered into in October 2015 and reflected a total purchase of $1 billion of shares of the company's stock. The average price paid per share under the ASR was $78.05. Outlook for 2016 The company has revised its net sales outlook and now expects full year net sales of 5% to 7% below the prior year on a reported basis and 0% to 2% below the prior year on a constant dollar basis. The revision is driven by increased customs processes at border points in China, lower-than-expected U.S. market share in the first half of the year, as well as increased trade investments in China. The company reaffirms 2016 GAAP EPS guidance of $2.91 to $3.03 as improved gross margin and lower operating costs are expected to offset the impact of lower sales. GAAP EPS guidance is likely to be impacted by potentially significant future mark-to-market pension adjustments which cannot be estimated and are classified as a Specified Item. The company reaffirms non-GAAP EPS guidance of $3.48 to $3.60. Specified Items include charges related to Fuel for Growth and our Venezuela business. This guidance includes an estimated adverse impact of current exchange rates, which is now expected to be approximately $0.35 per share. "We remain squarely focused on restoring topline growth as we move into the second half of the year," said Mr. Jakobsen. "Expected progress against the newly announced, more ambitious cost reduction target will help fund the investments we need to make and protect our value creation. Despite a challenging external environment, I am excited about the opportunities in front of us, and I remain confident in our ability to deliver against the strategy we communicated to investors late last year." Conference Call Scheduled Mead Johnson will host a conference call at 8:30 a.m. U.S. Central Time, during which company executives will review the financial results for the second quarter and first half of 2016. The call will be broadcast with accompanying slides over the Internet at http://investors.meadjohnson.com. Security analysts and investors wishing to participate by telephone should call 877-359-9508, pass code: Mead Johnson. Callers outside of North America should call +1-224-357-2393 to be connected. A replay of the conference call will be available through 11:00 p.m. U.S. Central Time Sunday, September 11, 2016, by calling 855-859-2056, or outside of North America by calling +1-404-537-3406, passcode: 43193043. The replay will also be available at meadjohnson.com. Forward-Looking Statements Certain statements in this news release are forward-looking as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by the fact they use words such as “should,” “expect,” “anticipate,” “estimate,” “target,” “may,” “project,” “guidance,” “intend,” “plan,” “believe” and other words and terms of similar meaning and expression. Such statements are likely to relate to, among other things, a discussion of goals, plans and projections regarding financial position, results of operations, cash flows, market position, product development, product approvals, sales efforts, expenses, capital expenditures, performance or results of current and anticipated products and the outcome of contingencies such as legal proceedings and financial results. Forward-looking statements can also be identified by the fact that they do not relate strictly to historical or current facts. Such forward-looking statements are based on current expectations that involve inherent risks, uncertainties and assumptions that may cause actual results to differ materially from expectations as of the date of this news release. These risks include, but are not limited to: (1) the ability to sustain brand strength, particularly the Enfa family of brands; (2) the effect on the company’s reputation of real or perceived quality issues; (3) the effect of regulatory restrictions related to the company’s products; (4) the adverse effect of commodity costs; (5) increased competition from branded, private label, store and economy-branded products; (6) the effect of an economic downturn on consumers’ purchasing behavior and customers’ ability to pay for product; (7) inventory reductions by customers; (8) the adverse effect of changes in foreign currency exchange rates; (9) the effect of changes in economic, political and social conditions in the markets where we operate; (10) changing consumer preferences; (11) the possibility of changes in the WIC program, or participation in WIC(2); (12) legislative, regulatory or judicial action that may adversely affect the company’s ability to advertise its products, maintain product margins, or negatively impact the company’s reputation or result in fines or penalties that decrease earnings; and (13) the ability to develop and market new, innovative products. For additional information regarding these and other factors, see the company’s filings with the United States Securities and Exchange Commission (the “SEC”), including its most recent Annual Report on Form 10-K, which filings are available upon request from the SEC or at www.meadjohnson.com. The company cautions readers not to place undue reliance on any forward-looking statements, which speak only as of the date made. The company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. About Mead Johnson Mead Johnson, a global leader in pediatric nutrition, develops, manufactures, markets and distributes more than 70 products in over 50 markets worldwide. The company’s mission is to nourish the world’s children for the best start in life. The Mead Johnson name has been associated with science-based pediatric nutrition products for over 100 years. The company’s “Enfa” family of brands, including Enfamil® infant formula, is the world’s leading brand franchise in pediatric nutrition. For more information, go to www.meadjohnson.com. (2) The Special Supplemental Nutrition Program for Women, Infants and Children (WIC) is a federal assistance program of the Food and Nutrition Services (FNS) of the United States Department of Agriculture (USDA). (a) The numerator for basic and diluted earnings per share is net earnings attributable to shareholders. Net earnings has been reduced by dividends and undistributed earnings attributable to unvested share based incentive plan awards. The denominator for basic earnings per share is the weighted-average shares outstanding during the period. The denominator for diluted earnings per share is the weighted-average shares outstanding adjusted for the effect of dilutive stock options and performance share awards. Mead Johnson Nutrition Company Financial Information (UNAUDITED) Reconciliation of Non-GAAP to GAAP Results This news release contains non-GAAP financial measures, each of which is listed in the tables below. The items included in GAAP measures, but excluded for the purpose of determining the non-GAAP financial measures, include significant income/expenses not indicative of underlying operating results, including the related tax effect and, at times, the impact of foreign exchange. The non-GAAP measures represent an indication of the company’s underlying operating results and are intended to enhance an investor’s overall understanding of the company’s financial performance and ability to compare the company’s performance to that of its peer companies. In addition, this information is among the primary indicators the company uses as a basis for evaluating company performance, setting incentive compensation targets and planning and forecasting of future periods. This information is not intended to be considered in isolation or as a substitute for financial measures prepared in accordance with GAAP. Tables that reconcile non-GAAP to GAAP disclosure follow below. Constant Dollar Certain measures in this release are presented excluding the impact of foreign currency exchange (constant dollar). To present this information, current period results for entities reporting in currencies other than United States dollars are translated into United States dollars at the average exchange rates in effect during the corresponding period of the prior fiscal year, rather than the actual average exchange rates in effect during the current fiscal year. The company believes that these constant dollar measures provide useful information to investors because they provide transparency to underlying performance by excluding the effect that foreign currency exchange rate fluctuations have on period-to-period comparability given volatility in foreign currency exchange markets. The primary currencies which impact the company are: the Chinese renminbi, the Hong Kong dollar, the Mexican peso and the Philippine peso. Specified Items Non-GAAP measures presented within this release exclude Specified Items. The company considers Specified Items to be significant income/expense items as not indicative of underlying operating results, including the related tax effect. Mead Johnson Nutrition Company Financial Information (UNAUDITED) Reconciliation of Non-GAAP to GAAP Results Constant dollar consolidated gross sales Constant dollar net sales Non-GAAP constant dollar gross margin Non-GAAP constant dollar selling, general and administrative expenses Constant dollar segment EBIT Non-GAAP Corporate and other EBIT 35% 32% Non-GAAP EBIT and constant dollar EBIT Non-GAAP diluted EPS Consolidated Net Debt (a) Pension Remeasurement: When incurred, gains and losses related to the remeasurement of defined benefit pension and post-employment benefit plans are classified as Specified Items and excluded from non-GAAP performance measures. Pension remeasurement reflects changes in the pension assets and liabilities above what was estimated and included in periodic costs. Factors beyond our control such as changes in discount rates, market volatility and mortality assumptions drive the remeasurement amount. The majority of our pension and post-employment plans are frozen, and therefore the benefit provided to such employees is not related to our underlying operations. (b) Fuel for Growth: The Company approved a plan to implement a business productivity program referred to as “Fuel for Growth,” during the third quarter of 2015, which is anticipated to be implemented over a three-year period. Fuel for Growth is designed to improve operating efficiencies and reduce costs. Fuel for Growth is expected to improve profitability and create additional investments behind brand building and growth initiatives. Fuel for Growth focuses on the optimization of resources within various operating functions and certain third party costs across the business. (c) Investigation Accrual: An accrual made in connection with the SEC settlement disclosed by the Company in July 2015. (d) Venezuela: Foreign exchange losses and long-lived asset impairment charges in Venezuela. (e) All Other: Primarily includes restructuring costs in 2016 and a marketable securities gain in 2015.

GLENVIEW, Ill.--(BUSINESS WIRE)--Mead Johnson Nutrition Company (NYSE: MJN) will release its second quarter and first half 2016 earnings on Thursday, July 28, 2016, before the market opens. The company will host a conference call at 8:30 a.m. U.S. Central Time that same day, during which company executives will review the financial results and respond to questions from analysts and investors. The call will be broadcast with accompanying slides over the Internet at http://investors.meadjohnson.com. Security analysts and investors wishing to participate by telephone should call 877-359-9508, passcode: Mead Johnson. Callers outside of North America should call +1-224-357-2393 to be connected. A replay of the conference call will be available through 11:00 p.m. U.S. Central Time Sunday, September 11, 2016, by calling 855-859-2056, or outside of North America by calling +1-404-537-3406, passcode: 43193043. The replay will also be available at meadjohnson.com. About Mead Johnson Mead Johnson, a global leader in pediatric nutrition, develops, manufactures, markets and distributes more than 70 products in over 50 countries worldwide. The company's mission is to nourish the world’s children for the best start in life. The Mead Johnson name has been associated with science-based pediatric nutrition products for over 100 years. The company's "Enfa" family of brands, including Enfamil® infant formula, is the world's leading brand franchise in pediatric nutrition. For more information, visit meadjohnson.com.

GLENVIEW, Ill.--(BUSINESS WIRE)--Mead Johnson Nutrition Company (NYSE: MJN) today announced its financial results for the quarter ended March 31, 2016. “In the first quarter, we again saw a sequential improvement in our underlying business over the prior quarter," said Kasper Jakobsen, Chief Executive Officer. "While the economic climate outside the United States is less favorable than it was a few years ago, we are confident in our strategy. We are particularly encouraged by the progress we are making on reshaping our China business and on bringing down our global operating expense base.” Highlights are as follows: Sales in the first quarter of 2016 rose 1.5% over the fourth quarter of 2015 on a constant dollar(1) basis. First quarter 2016 sales were down 0.5% from the fourth quarter of 2015 on a reported basis. First quarter net sales were 6% below the prior year quarter on a constant dollar basis. Excluding Venezuela, sales were 4% below the prior year quarter on a constant dollar basis. On a reported basis sales were 12% below the prior year quarter. Gross margin of 64.1% was in line with the prior year quarter on a non-GAAP(2) basis. On a GAAP basis, gross margin was 63.9% for the first quarter. The Fuel for Growth program delivered strong savings during the first quarter, driving a decrease in selling, general and administrative expenses of 10% on a constant dollar, non-GAAP basis compared to the prior year quarter. Selling, general and administrative expenses decreased 15% on a reported basis. Advertising and promotion spending increased by 11% versus the prior year quarter on a constant dollar basis, driven by investments in the rollout of new product innovations and the support of the company's strategy in China. Advertising and promotion spending increased 5% on a reported basis. Non-GAAP Earnings before Interest and Income Taxes (EBIT) on a constant dollar basis in the first quarter was 10% below the prior year quarter. Specified Items were $94 million, most notably $78 million of charges related to currency devaluation and long-lived asset impairment in our Venezuela subsidiary. EBIT was 47% below the prior year quarter. Non-GAAP Earnings per Share (EPS) for the first quarter was $0.87. Including Specified Items, GAAP EPS was $0.39. The company reaffirms full year 2016 net sales guidance on a constant dollar basis of 0% to 2% higher when compared to 2015 and 4% to 6% below the prior year on a reported basis. The company reaffirms non-GAAP EPS guidance of $3.48 to $3.60 for the full year 2016, excluding Specified Items. Specified Items are now expected to be $0.57 per share as compared to our prior guidance of $0.12, primarily due to first quarter charges associated with our Venezuela business. 2016 GAAP EPS is expected to be in the range of $2.91 to $3.03.(3) (1) Constant dollar figures exclude the impact of changes in foreign currency exchange rates and are reconciled in the tables in the body of this earnings release and in the schedules titled “Reconciliation of Non-GAAP to GAAP Results.” (2) Non-GAAP results exclude Specified Items. For a description of Specified Items and a reconciliation of non-GAAP to GAAP, see the schedules titled “Reconciliation of Non-GAAP to GAAP Results.” (3) GAAP EPS is likely to be impacted by future mark-to-market pension adjustments which cannot be estimated. % of Total % of Total Constant Dollar In line with expectations, sales in all segments continued to be adversely impacted by the strengthening of the U.S. dollar compared to the first quarter of 2015. The foreign currency impact in Asia and Latin America was most notable in China, Mexico and Argentina. The company showed sequential improvement in sales compared to the fourth quarter of 2015 of 1.5% on a constant dollar basis, and 0.5% below that quarter on a reported basis. On a sequential basis, the company delivered sales growth in Asia and Latin America, offset by declines in North America/Europe, compared to the fourth quarter of 2015. Within the Asia segment, high single digit sequential sales growth was mainly driven by continued momentum in China, with the company's fully imported product line accounting for 45% of total sales in China by the end of the quarter. The rollout of product innovations and price increases supported the sequential growth in several other Asian markets. First quarter 2016 sales versus the prior year quarter were lower in Asia as a result of more challenging market dynamics and select market share losses experienced in the second and third quarters of 2015. In China, increased price-based promotion and a shift in consumer preferences over the prior year have also negatively impacted sales. In the other Asian markets, macro-economic developments in combination with market share weakness and price-based promotional activities negatively impacted sales. Latin America, excluding Venezuela, had a 7% sales improvement on a constant dollar basis compared to the prior year quarter. Growth was mainly driven by price increases to compensate for the continued currency devaluations, as well as higher sales of premium infant products in most markets. The company has seen solid performance in Mexico and Colombia, while other markets in the segment were impacted by macro-economic weakness and stronger competitor activities. Including the impact of a temporary suspension of shipments to Venezuela, constant dollar sales decreased 6% compared to the prior year quarter. On a reported basis, segment sales decreased 22%. In North America/Europe, sales decreased compared to the prior year quarter. In the U.S., the company has seen some market share pressure and increased competitive activities, which adversely impacted sales. In Canada, continued strong growth was driven by significant market share gains in both infant and children's products. Sales in Europe continue to increase, driven by market share gains in the growing allergy business. % Change Due to % of Sales Constant Dollar Foreign Exchange (a) All Specified Items are included in Corporate and Other. Non-GAAP EBIT on a constant dollar basis was 10% below the prior year quarter. Lower sales resulted in adjusted gross profit declines of 6% on a constant dollar basis and 12% on a reported basis. Gross margin percentage was 64% for the first quarter of 2016, in line with the prior year quarter as well as the fourth quarter of 2015. Advertising and promotion increased by 11% on a constant dollar basis and 5% on a reported basis, mainly in China. Selling, general and administrative expenses declined 10% on a constant dollar, non-GAAP basis and 15% on a reported basis primarily due to Fuel for Growth. EBIT was 47% below the prior year quarter on a reported basis. In Asia, EBIT on a constant dollar basis decreased by 22% when compared to the first quarter of 2015. This was mainly a result of lower sales and increased channel investments and promotional activities. In addition, the company made significantly higher advertising and promotion investments to support our innovations in the region. In China, investments were made to support the new product offerings. Adverse foreign exchange negatively impacted EBIT by 5% compared to the first quarter of 2015. EBIT decreased 27% on a reported basis. In Latin America, EBIT on a constant dollar basis was 11% below the prior year. Excluding the impact of the Venezuela business, EBIT on a constant dollar basis increased compared to the prior year quarter by 22%. Gross margin percentage was in line with the prior year quarter. Operating expenses were slightly lower on a constant dollar basis due to lower advertising and promotion spending. EBIT on a reported basis was 29% below the first quarter of 2015. In North America/Europe, EBIT on a constant dollar basis was 9% above the prior year. EBIT improved despite lower sales, primarily due to higher margins from lower dairy costs and lower advertising and promotion and operational expenses. EBIT on a reported basis was 5% above the prior year quarter. Corporate and Other expenses, excluding Specified Items, were 29% lower compared to the first quarter of 2015 primarily due to Fuel for Growth initiatives. Specified Items increased compared to the prior year due to long-lived asset impairment and devaluation charges related to the Venezuela business, Fuel for Growth and pension mark-to-market losses. Including the impact of Specified Items, Corporate and Other expenses increased 73% compared to the prior year period. Cash Flow Items and Liquidity Cash and cash equivalents were $1,702.3 million at March 31, 2016 compared to $1,701.4 million at December 31, 2015. The company's net debt was $1,313.4 million at March 31, 2016, consisting of debt less cash and cash equivalents. Cash and cash equivalents increased $0.9 million in the three months ended March 31, 2016 as operating cash flows were utilized for capital expenditures and dividends. Cash and cash equivalents were further impacted by the devaluation in Venezuela. Cash provided by operating activities was $160.1 million for the three months ended March 31, 2016 compared to $274.5 million in the prior year period. Cash flows reflect reduced income from lower sales and other changes in working capital. Cash used in investing activities include capital expenditures of $55.6 million for the first quarter of 2016. This included investments in capacity expansion for manufacturing facilities in the U.S. and Europe. Cash used in financing activities was $77.0 million for the three months ended March 31, 2016 compared to $80.3 million in the prior year period. Expenditures in the current year and the prior year were primarily related to dividend payments. Interest expense, net, for the three months ended March 31, 2016 was $26.2 million, an increase from $13.8 million in the prior year period due to the incremental interest on the long-term debt issued in November 2015, partially offset by the impact of interest rate swaps. The weighted average shares outstanding for the three months ended March 31, 2016 was 186.7 million. During the first quarter, the company did not repurchase any additional shares of stock under the 2015 share buyback program. Dividends declared in the first quarter of 2016 were $0.4125 per share, in line with the prior year. Outlook for 2016 The company reaffirms full year 2016 sales guidance on a constant dollar basis of 0% to 2% higher compared to 2015 and expects this to translate to 4% to 6% below the prior year on a reported basis. The company also reaffirms non-GAAP EPS guidance of $3.48 to $3.60 for the full year 2016, excluding Specified Items. "We continue to see foreign exchange as a likely significant headwind for 2016," said Mr. Jakobsen. He continued, "We remain focused on executing our key strategies including the reshaping of our product portfolio and channel participation in China, and protecting our ability to invest behind key initiatives through the continued reduction of our expense base." Specified Items are now expected to be $0.57 per share as compared to our prior guidance of $0.12, primarily due to first quarter charges associated with our Venezuela business. 2016 GAAP EPS is expected to be in the range of $2.91 to $3.03.(4) (4) GAAP EPS is likely to be impacted by future mark-to-market pension adjustments which cannot be estimated. Conference Call Scheduled Mead Johnson will host a conference call at 8:30 a.m. U.S. Central Time, during which company executives will review the financial results for the first quarter of 2016. The call will be broadcast with accompanying slides over the Internet at http://investors.meadjohnson.com. Security analysts and investors wishing to participate by telephone should call 877-359-9508, pass code: Mead Johnson. Callers outside of North America should call +1-224-357-2393 to be connected. A replay of the conference call will be available through 11:00 p.m. U.S. Central Time Sunday, June 12, 2016, by calling 855-859-2056, or outside of North America by calling +1-404-537-3406, passcode: 81881841. The replay will also be available at meadjohnson.com. Forward-Looking Statements Certain statements in this news release are forward-looking as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by the fact they use words such as “should,” “expect,” “anticipate,” “estimate,” “target,” “may,” “project,” “guidance,” “intend,” “plan,” “believe” and other words and terms of similar meaning and expression. Such statements are likely to relate to, among other things, a discussion of goals, plans and projections regarding financial position, results of operations, cash flows, market position, product development, product approvals, sales efforts, expenses, capital expenditures, performance or results of current and anticipated products and the outcome of contingencies such as legal proceedings and financial results. Forward-looking statements can also be identified by the fact that they do not relate strictly to historical or current facts. Such forward-looking statements are based on current expectations that involve inherent risks, uncertainties and assumptions that may cause actual results to differ materially from expectations as of the date of this news release. These risks include, but are not limited to: (1) the ability to sustain brand strength, particularly the Enfa family of brands; (2) the effect on the company’s reputation of real or perceived quality issues; (3) the effect of regulatory restrictions related to the company’s products; (4) the adverse effect of commodity costs; (5) increased competition from branded, private label, store and economy-branded products; (6) the effect of an economic downturn on consumers’ purchasing behavior and customers’ ability to pay for product; (7) inventory reductions by customers; (8) the adverse effect of changes in foreign currency exchange rates; (9) the effect of changes in economic, political and social conditions in the markets where we operate; (10) changing consumer preferences; (11) the possibility of changes in the WIC program, or participation in WIC(5); (12) legislative, regulatory or judicial action that may adversely affect the company’s ability to advertise its products, maintain product margins, or negatively impact the company’s reputation or result in fines or penalties that decrease earnings; and (13) the ability to develop and market new, innovative products. For additional information regarding these and other factors, see the company’s filings with the United States Securities and Exchange Commission (the “SEC”), including its most recent Annual Report on Form 10-K, which filings are available upon request from the SEC or at www.meadjohnson.com. The company cautions readers not to place undue reliance on any forward-looking statements, which speak only as of the date made. The company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. About Mead Johnson Mead Johnson, a global leader in pediatric nutrition, develops, manufactures, markets and distributes more than 70 products in over 50 markets worldwide. The company’s mission is to nourish the world’s children for the best start in life. The Mead Johnson name has been associated with science-based pediatric nutrition products for over 100 years. The company’s “Enfa” family of brands, including Enfamil® infant formula, is the world’s leading brand franchise in pediatric nutrition. For more information, go to www.meadjohnson.com. (5) The Special Supplemental Nutrition Program for Women, Infants and Children (WIC) is a federal assistance program of the Food and Nutrition Services (FNS) of the United States Department of Agriculture (USDA). (a) The numerator for basic and diluted earnings per share is net earnings attributable to shareholders. Net earnings has been reduced by dividends and undistributed earnings attributable to unvested share based incentive plan awards. The denominator for basic earnings per share is the weighted-average shares outstanding during the period. The denominator for diluted earnings per share is the weighted-average shares outstanding adjusted for the effect of dilutive stock options and performance share awards. Debt Issuance Costs MEAD JOHNSON NUTRITION COMPANY RECONCILIATION OF NON-GAAP TO GAAP RESULTS (Dollars in millions) (UNAUDITED) This news release contains non-GAAP financial measures, which may include non-GAAP net sales, gross profit, certain components of operating expenses, EBIT, earnings and earnings per share information. The items included in GAAP measures, but excluded for the purpose of determining the above listed non-GAAP financial measures, include significant income/expenses not indicative of underlying operating results, including the related tax effect and, at times, the impact of foreign exchange. The above listed non-GAAP measures represent an indication of the company’s underlying operating results and are intended to enhance an investor’s overall understanding of the company’s financial performance and ability to compare the company’s performance to that of its peer companies. In addition, this information is among the primary indicators the company uses as a basis for evaluating company performance, setting incentive compensation targets and planning and forecasting of future periods. This information is not intended to be considered in isolation or as a substitute for financial measures prepared in accordance with GAAP. Tables that reconcile non-GAAP to GAAP disclosure follow and appear elsewhere in this presentation. Mark-to-Market Pension Non-GAAP Constant Dollar (7 (5 0.2 Certain figures do not sum due to rounding. (a) All Specified Items are included in Corporate and Other. (b) Specified Items include legal, settlement and related costs, severance and other expenses.

GLENVIEW, Ill.--(BUSINESS WIRE)--Mead Johnson Nutrition Company (NYSE: MJN) will release its first quarter 2016 earnings on Thursday, April 28, 2016, before the market opens. The company will host a conference call at 8:30 a.m. U.S. Central Time that same day, during which company executives will review the financial results and respond to questions from analysts and investors. The call will be broadcast with accompanying slides over the Internet at http://investors.meadjohnson.com. Security analysts and investors wishing to participate by telephone should call 877-359-9508, passcode: Mead Johnson. Callers outside of North America should call +1-224-357-2393 to be connected. A replay of the conference call will be available through 11:00 p.m. U.S. Central Time Sunday, June 12, 2016, by calling 855-859-2056, or outside of North America by calling +1-404-537-3406, passcode: 81881841. The replay will also be available at meadjohnson.com. About Mead Johnson Mead Johnson, a global leader in pediatric nutrition, develops, manufactures, markets and distributes more than 70 products in over 50 countries worldwide. The company's mission is to nourish the world’s children for the best start in life. The Mead Johnson name has been associated with science-based pediatric nutrition products for over 100 years. The company's "Enfa" family of brands, including Enfamil® infant formula, is the world's leading brand franchise in pediatric nutrition. For more information, visit meadjohnson.com.

GLENVIEW, Ill.--(BUSINESS WIRE)--Mead Johnson Nutrition Company (NYSE: MJN) today announced its financial results for the quarter and year ended December 31, 2015. “I am pleased with the sequential improvements in our underlying business since our last earnings call, despite a challenging operating environment across many of the emerging markets," said Kasper Jakobsen, Chief Executive Officer. "Our two biggest businesses in China and the United States both posted sales above the levels experienced in the third quarter. I am also pleased that our Fuel for Growth initiative and our focus on operating expenses allowed us to deliver earnings per share above expectations within the fourth quarter." Highlights are as follows: Excluding the impact of intentionally reduced shipments into Venezuela, sales in the fourth quarter of 2015 rose 1% over the third quarter of 2015(1) on a constant dollar(2) basis. Fourth quarter sales were 6% below the prior year quarter on a constant dollar basis and 12% below the prior year quarter on a reported basis. Full year sales were 2% below the prior year on a constant dollar basis and 8% below the prior year on a reported basis. Non-GAAP gross margin for the fourth quarter of 63.9% was 200 basis points higher than the prior year quarter, mainly due to lower dairy input costs. Gross margin on a GAAP basis was 62.9%, up from 60.7% in the prior year quarter. Non-GAAP EBIT in the fourth quarter was 3% below the prior year quarter on a constant dollar basis. Inclusive of a $25 million provision related to our Fuel for Growth operating expense initiative, on a GAAP basis EBIT was 7% below the prior year quarter. Full year 2015 non-GAAP EBIT was in-line with 2014 on a constant dollar basis. On a GAAP basis, EBIT was 5% below the prior year. During the fourth quarter, the company repurchased 10.7 million shares of stock under an accelerated share repurchase agreement. As of December 31, 2015, 186.4 million shares were outstanding. Based on weighted average shares outstanding of 189.8 million, non-GAAP Earnings Per Share (EPS) for the fourth quarter was $0.78; GAAP EPS was $0.67. 2015 full year non-GAAP EPS was $3.44, slightly above the top end of the guidance range. 2015 GAAP EPS was $3.27. Full year 2016 constant dollar sales are expected at 0% to 2% compared to 2015. Assuming exchange rates remain at current levels, this will translate to 4% to 6% below prior year on a reported basis. (1) Fourth quarter sales were down 1% from the third quarter on a reported basis, and flat on a constant dollar basis, compared to the third quarter. Excluding the impact of sales in Venezuela, fourth quarter sales on a constant dollar basis increased 1% compared to the third quarter. (2) Constant dollar figures exclude the impact of changes in foreign currency exchange rates and are reconciled in the tables in the body of this earnings release. Non-GAAP or as adjusted results exclude Specified Items. For a description of Specified Items, and a reconciliation of non-GAAP to GAAP, see the schedules titled “Reconciliation of Non-GAAP to GAAP Results.” Full year 2016 non-GAAP EPS is expected in the range of $3.48 to $3.60, excluding expected future costs related to Fuel for Growth and mark-to-market pension adjustments which are not reflected in this guidance. The company expects to incur charges approximating $25 to $30 million associated with the Fuel for Growth program in 2016. Specified Items including charges related to Fuel for Growth are expected to be approximately $0.12 per share. Therefore GAAP EPS is expected to be in the range of $3.36 to $3.48, excluding mark-to-market pension adjustments which cannot be estimated. EPS guidance includes an estimated adverse impact of current exchange rates as of January 2016, which is expected to be approximately $0.40 per share. Sales in all segments were adversely impacted by a strengthening dollar, most notably in China, Mexico and Canada. In Asia, improvement was seen in Greater China in the fourth quarter of 2015 when compared to the third quarter of 2015 due to the recently launched fully-imported range of products. Further, sales in the current quarter were below the prior year quarter mostly due to price-based promotions in Greater China and market share weakness in Malaysia and Thailand. Sales in the Philippines increased compared to the prior year quarter. In Latin America sales decreased compared to the prior year quarter primarily due to intentionally reduced shipments into Venezuela prompted by delayed settlement of inventory related U.S. dollar payables. Sales in the remainder of the segment increased on a constant dollar basis as sales of premium infant products increased in Mexico and Colombia and the ability to implement inflation-related price increases in Argentina. The sales impact of these factors was offset by the effect of price-based competition on the volume of Milk Modifier brands in Mexico. The North America/Europe segment sales were flat in the fourth quarter of 2015 when compared to a strong 2014, on a constant dollar basis. On a sequential basis, continued momentum in North America children's products and European allergy products resulted in an increase in sales in the fourth quarter of 2015 when compared to the third quarter of 2015. % of Sales % of Sales % Change Non-GAAP EBIT was 3% below the prior year quarter on a constant dollar basis. Gross margin improvements were attributable to favorable dairy costs across all segments but were not sufficient to fully offset the impact of reduced sales and increased brand investments. In Asia, operational expenses increased due to investments in growth initiatives, notably the fully-imported product launches in China and the establishment of plastic packaging formats across a number of markets. Inflationary cost increases also impacted EBIT. In Latin America, operational expenses were higher on a constant dollar basis due to investments in brand support. Excluding the impact of the Venezuela business, the segment's EBIT margin increased compared to the prior year quarter. North America/Europe delivered higher EBIT primarily due to improved gross margins. Corporate and Other expenses decreased on a reported basis primarily due to actuarial gains in the current quarter compared to actuarial losses in the prior year quarter and lower provisions for incentive compensation in the current quarter. Provisions related to Fuel for Growth partially offset lower operating expenses. On a sequential non-GAAP basis, Corporate and Other expenses were lower mainly as a result of the Fuel for Growth initiative. Years Ended December 31, Sales in all segments were adversely impacted by a strengthening dollar, most notably in China, Mexico and Canada. In Asia, increased price-based promotional competition enabled by lower dairy input costs resulted in sales below prior year level. Especially China, Thailand and Malaysia experienced weakness with the Philippines and Vietnam performing relatively better. The launch of a fully-imported range of products helped the China business show some improvements towards the end of the year. In Latin America, sales increased on a constant dollar basis in almost all markets. The primary driver was better pricing in Colombia and Argentina. Mexico's performance was negatively impacted as a result of price-based promotional competition in the Milk Modifiers category. However, across the region pricing failed to fully offset the adverse impact of foreign exchange. Shipments to Venezuela were intentionally reduced in the second half of the year as access to dollars required to settle intercompany payables became more difficult. North America/Europe delivered sales growth in virtually all markets on a constant dollar basis. Key drivers included a favorable change in product mix as well as better realized pricing throughout the segment. Years Ended December 31, % of Sales % of Sales % Change Non-GAAP EBIT was broadly in-line with the prior year on a constant dollar basis. The impact of reduced sales and increased demand-generation spending was offset by reduced dairy costs and lower operating expenses. In Asia, operating expenses increased due to higher expenditures on advertising and promotion required to support competitiveness and new product launches. Overall, these factors combined with lower sales negatively impacted profit margins for the segment. Latin America EBIT margin was similar to the prior year as sales decreases and investment spending were offset by improved gross margin due to lower dairy input costs. North America/Europe EBIT margin strengthened due to increased volumes, improved product mix and lower dairy input costs. Corporate and Other expenses decreased in the current year from lower incentive compensation, savings from the Fuel for Growth operating expense initiative, and reduced losses related to the re-measurement of our pension and other post-employment benefit plans. Cash Flow Items and Share Repurchases Cash and cash equivalents increased by $403.7 million since December 31, 2014 and were $1,701.4 million at December 31, 2015. Operating cash flow was $899.2 million in the twelve months ended December 31, 2015 compared to $793.4 million in the prior year period. Cash flows increased due to working capital improvements which were substantial enough to more than offset the impact of $90.1 million in contributions to pension plans. 2014 cash outflow related to innovation and the start-up of the manufacturing facility in Singapore did not recur in 2015. Investing activities include capital expenditures of $173.7 million for 2015. This included investments in capacity expansion for manufacturing facilities in the U.S. and our European plant to accommodate demand for new products. Financing activities include cash outflows of $1,437.0 million for the repurchase of approximately 16.4 million shares of stock under the company's 2013 and 2015 share repurchase authorizations with additional settlement under the accelerated share repurchase agreement expected in 2016. These purchases were funded with long-term debt of $1.5 billion issued in 2015. Long-term debt was approximately $3.0 billion as of December 31, 2015. The company's net debt was $1,282.6 million, consisting of debt and cash and cash equivalents. Interest expense, net, for 2015 was $65.0 million, an increase from $60.3 million in 2014 due to the incremental interest on the newly issued long-term debt, partially offset by the impact of the interest rate swaps. Dividends declared in 2015 were $1.65 per share, a 10% increase over 2014. Outlook for 2016 The company announced full year guidance for 2016. It expects full year constant dollar sales to be in a range of 0% to 2% above 2015 and non-GAAP EPS in the range of $3.48 to $3.60 based on current exchange rates. “As discussed during our Investor Day in October of last year we view 2016 as a year of transition as we invest heavily in reshaping our portfolio in China and boost investment in new channels there. We expect modest, single digit EPS growth as a strengthening dollar will continue to challenge the translation of our results. To help investors better understand our underlying performance we will provide constant dollar profit measures through the year,” said Kasper Jakobsen, Chief Executive Officer. He added, “We expect sales growth to accelerate in the second half of the year reflecting the phasing of growth initiatives and investments. Our Fuel for Growth initiative is a critical element of our strategy to help offset the impact of foreign exchange and protect funding for new brand introductions.” The company expects to incur charges approximating $25 to $30 million associated with the Fuel for Growth program in 2016. Specified Items including charges related to Fuel for Growth are expected to be approximately $0.12 per share. Therefore GAAP EPS is expected to be in the range of $3.36 to $3.48, excluding mark-to-market pension adjustments which cannot be estimated. EPS guidance includes an estimated adverse impact of current exchange rates as of January 2016, which is expected to be approximately $0.40 per share. Conference Call Scheduled Mead Johnson will host a conference call at 8:30 a.m. U.S. Central Time, during which company executives will review the financial results for the fourth quarter and full year 2015. The call will be broadcast with accompanying slides over the Internet at http://investors.meadjohnson.com. Security analysts and investors wishing to participate by telephone should call 877-359-9508, pass code: Mead Johnson. Callers outside of North America should call +1-224-357-2393 to be connected. A replay of the conference call will be available through 11:30 p.m. U.S. Central Time Sunday, March 13, 2016, by calling 855-859-2056, or outside of North America by calling +1-404-537-3406, passcode: 9288784. The replay will also be available at meadjohnson.com. Forward-Looking Statements Certain statements in this news release are forward-looking as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by the fact they use words such as “should,” “expect,” “anticipate,” “estimate,” “target,” “may,” “project,” “guidance,” “intend,” “plan,” “believe” and other words and terms of similar meaning and expression. Such statements are likely to relate to, among other things, a discussion of goals, plans and projections regarding financial position, results of operations, cash flows, market position, product development, product approvals, sales efforts, expenses, capital expenditures, performance or results of current and anticipated products and the outcome of contingencies such as legal proceedings and financial results. Forward-looking statements can also be identified by the fact that they do not relate strictly to historical or current facts. Such forward-looking statements are based on current expectations that involve inherent risks, uncertainties and assumptions that may cause actual results to differ materially from expectations as of the date of this news release. These risks include, but are not limited to: (1) the ability to sustain brand strength, particularly the Enfa family of brands; (2) the effect on the company’s reputation of real or perceived quality issues; (3) the effect of regulatory restrictions related to the company’s products; (4) the adverse effect of commodity costs; (5) increased competition from branded, private label, store and economy-branded products; (6) the effect of an economic downturn on consumers’ purchasing behavior and customers’ ability to pay for product; (7) inventory reductions by customers; (8) the adverse effect of changes in foreign currency exchange rates; (9) the effect of changes in economic, political and social conditions in the markets where we operate; (10) changing consumer preferences; (11) the possibility of changes in the WIC(3) program, or participation in WIC; (12) legislative, regulatory or judicial action that may adversely affect the company’s ability to advertise its products, maintain product margins, or negatively impact the company’s reputation or result in fines or penalties that decrease earnings; and (13) the ability to develop and market new, innovative products. For additional information regarding these and other factors, see the company’s filings with the United States Securities and Exchange Commission (the “SEC”), including its most recent Annual Report on Form 10-K, which filings are available upon request from the SEC or at www.meadjohnson.com. The company cautions readers not to place undue reliance on any forward-looking statements, which speak only as of the date made. The company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. About Mead Johnson Mead Johnson, a global leader in pediatric nutrition, develops, manufactures, markets and distributes more than 70 products in over 50 markets worldwide. The company’s mission is to nourish the world’s children for the best start in life. The Mead Johnson name has been associated with science-based pediatric nutrition products for over 100 years. The company’s “Enfa” family of brands, including Enfamil® infant formula, is the world’s leading brand franchise in pediatric nutrition. For more information, go to www.meadjohnson.com. (3) The Special Supplemental Nutrition Program for Women, Infants and Children (WIC) is a federal assistance program of the Food and Nutrition Services (FNS) of the United States Department of Agriculture (USDA). Years Ended (a) The numerator for basic and diluted earnings per share is net earnings attributable to shareholders. Net earnings has been reduced by dividends and undistributed earnings attributable to unvested share based incentive plan awards. The denominator for basic earnings per share is the weighted-average shares outstanding during the period. The denominator for diluted earnings per share is the weighted-average shares outstanding adjusted for the effect of dilutive stock options and performance share awards. When aggregated, EPS for the four quarters of 2015 are not equal to the full year EPS figure due to the variability of quarterly earnings and the timing of share repurchases. Years Ended December 31, MEAD JOHNSON NUTRITION COMPANY RECONCILIATION OF NON-GAAP TO GAAP RESULTS (Dollars in millions, except per share data) (UNAUDITED) This news release contains non-GAAP financial measures, which may include non-GAAP net sales, gross profit, certain components of operating expenses, EBIT, earnings and earnings per share information. The items included in GAAP measures, but excluded for the purpose of determining the above listed non-GAAP financial measures, include significant income/expenses not indicative of underlying operating results, including the related tax effect and, at times, the impact of foreign exchange. The above listed non-GAAP measures represent an indication of the company’s underlying operating results and are intended to enhance an investor’s overall understanding of the company’s financial performance and ability to compare the company’s performance to that of its peer companies. In addition, this information is among the primary indicators the company uses as a basis for evaluating company performance, setting incentive compensation targets and planning and forecasting of future periods. This information is not intended to be considered in isolation or as a substitute for financial measures prepared in accordance with GAAP. Tables that reconcile non-GAAP to GAAP disclosure follow and appear elsewhere in this presentation. Other(b) Other(b) Certain figures do not sum due to rounding. When aggregated, EPS for the four quarters of 2015 are not equal to the full year EPS figure due to the variability of quarterly earnings and the timing of share repurchases. (a) All Specified Items are included in Corporate and Other. (b) All Other include legal, settlement and related costs, severance and other expenses, and marketable securities. Other(b) Other(b) Certain figures do not sum due to rounding. When aggregated, EPS for the four quarters of 2015 are not equal to the full year EPS figure due to the variability of quarterly earnings and the timing of share repurchases. (a) All Specified Items are included in Corporate and Other. (b) Specified Items include legal, settlement and related costs, severance and other expenses, and marketable securities.

GLENVIEW, Ill.--(BUSINESS WIRE)--Mead Johnson Nutrition Company (NYSE: MJN) will release its fourth quarter and full year 2015 earnings on Thursday, January 28, 2016, before the market opens. The company will host a conference call at 8:30 a.m. U.S. Central Time that same day, during which company executives will review the financial results and respond to questions from analysts and investors. The call will be broadcast over the Internet at http://investors.meadjohnson.com. Security analysts and investors wishing to participate by telephone should call 877-359-9508, passcode: Mead Johnson. Callers outside of North America should call +1-224-357-2393 to be connected. A replay of the conference call will be available through 11:30 p.m. U.S. Central Time Sunday, March 13, 2016, by calling 855-859-2056, or outside of North America by calling +1-404-537-3406, passcode: 9288784. The replay will also be available at meadjohnson.com. About Mead Johnson Mead Johnson, a global leader in pediatric nutrition, develops, manufactures, markets and distributes more than 70 products in over 50 countries worldwide. The company's mission is to nourish the world’s children for the best start in life. The Mead Johnson name has been associated with science-based pediatric nutrition products for over 100 years. The company's "Enfa" family of brands, including Enfamil® infant formula, is the world's leading brand franchise in pediatric nutrition. For more information, visit meadjohnson.com.

GLENVIEW, Ill.--(BUSINESS WIRE)--Mead Johnson Nutrition Company (NYSE: MJN) will release its third quarter and year-to-date 2015 earnings on Thursday, October 22, 2015, before the market opens. On that day, the company will host a conference call from 8:30 a.m. to 9:00 a.m. CDT, during which company executives will review third quarter and year-to-date financial results. This earnings call will be followed by a management presentation during which senior executives will discuss the company’s strategies and plans. Two Q&A sessions will be hosted during the management presentation and this event will be broadcast live over the Internet. You are cordially invited to attend Mead Johnson's Investor Day event at The W Hotel - City Center in Chicago, Illinois. Please register on our website at http://investors.meadjohnson.com. 7:30 a.m. - 8:30 a.m. Continental Breakfast 8:30 a.m. - 9:00 a.m. Third Quarter Earnings Conference Call 9:00 a.m. - 1:00 p.m. Management Presentations, including Q&A 1:00 p.m. - 2:00 p.m. Informal Interaction with Management over a Buffet Lunch This event will feature presentations by senior executives, including: Kasper Jakobsen – President and Chief Executive Officer Michel Cup – Executive Vice President and Chief Financial Officer Charles Urbain – Executive Vice President and Chief Operating Officer Dirk Hondmann, Ph.D. – Chief Scientific Officer Graciela Monteagudo – Senior Vice President and President, Americas and Global Marketing Sandra Yu – Senior Vice President and General Manager, Greater China Greg Shewchuk – Vice President, Global Marketing The earnings conference call and management presentation will be broadcast over the Internet at http://investors.meadjohnson.com. Security analysts and investors wishing to participate by telephone should call (877) 359-9508, pass code: Mead Johnson. Callers outside of North America should call +1-224-357-2393 to be connected. A replay of the conference call will be available through 11:00 p.m. CST December 6, 2015, by calling (855) 859-2056, or outside of North America by calling +1-404-537-3406, pass code: 50955892. The replay will also be available at meadjohnson.com. About Mead Johnson Mead Johnson, a global leader in pediatric nutrition, develops, manufactures, markets and distributes more than 70 products in over 50 countries worldwide. The company's mission is to nourish the world’s children for the best start in life. The Mead Johnson name has been associated with science-based pediatric nutrition products for over 100 years. The company's "Enfa" family of brands, including Enfamil® infant formula, is the world's leading brand franchise in pediatric nutrition. For more information, visit meadjohnson.com.

GLENVIEW, Ill.--(BUSINESS WIRE)--Mead Johnson Nutrition Company (NYSE: MJN) will release its second quarter and first-half 2015 earnings on Thursday, July 23, 2015, before the market opens. The company will host a conference call at 8:30 a.m. CDT that same day, during which company executives will review second quarter and first-half financial results and respond to questions from analysts and investors. The call will be broadcast over the Internet at http://investors.meadjohnson.com. Security analysts and investors wishing to participate by telephone should call (877) 359-9508, pass code: Mead Johnson. Callers outside of North America should call +1-224-357-2393 to be connected. A replay of the conference call will be available through 11:00 p.m. CDT Monday, September 7, 2015, by calling (855) 859-2056, or outside of North America by calling +1-404-537-3406, pass code: 72439803. The replay will also be available at meadjohnson.com. About Mead Johnson Mead Johnson, a global leader in pediatric nutrition, develops, manufactures, markets and distributes more than 70 products in over 50 countries worldwide. The company's mission is to nourish the world’s children for the best start in life. The Mead Johnson name has been associated with science-based pediatric nutrition products for over 100 years. The company's "Enfa" family of brands, including Enfamil® infant formula, is the world's leading brand franchise in pediatric nutrition. For more information, visit meadjohnson.com.

GLENVIEW, Ill.--(BUSINESS WIRE)--Mead Johnson Nutrition Company (NYSE: MJN) will release its first quarter 2015 earnings on Thursday, April 23, 2015, before the market opens. The company will host a conference call at 8:30 a.m. CDT that same day, during which company executives will review the financial results and respond to questions from analysts and investors. The call will be broadcast over the Internet at http://investors.meadjohnson.com. Security analysts and investors wishing to participate by telephone should call (877) 359-9508, pass code: Mead Johnson. Callers outside of North America should call +1-224-357-2393 to be connected. A replay of the conference call will be available through 11:00 p.m. CDT Sunday, June 7, 2015, by calling (855) 859-2056, or outside of North America by calling +1-404-537-3406, pass code: 14813139. The replay will also be available at meadjohnson.com. About Mead Johnson Mead Johnson, a global leader in pediatric nutrition, develops, manufactures, markets and distributes more than 70 products in over 50 countries worldwide. The company's mission is to nourish the world’s children for the best start in life. The Mead Johnson name has been associated with science-based pediatric nutrition products for over 100 years. The company's "Enfa" family of brands, including Enfamil® infant formula, is the world's leading brand franchise in pediatric nutrition. For more information, visit meadjohnson.com.

GLENVIEW, Ill.--(BUSINESS WIRE)--Mead Johnson Nutrition Company (NYSE: MJN) will release its fourth quarter and full year 2014 earnings on Thursday, January 29, 2015, before the market opens. The company will host a conference call at 8:30 a.m. CST that same day, during which company executives will review the financial results and respond to questions from analysts and investors. The call will be broadcast over the Internet at http://investors.meadjohnson.com. Security analysts and investors wishing to participate by telephone should call (877) 359-9508, pass code: Mead Johnson. Callers outside of North America should call +1-224-357-2393 to be connected. A replay of the conference call will be available through midnight CST Sunday, March 15, 2015, by calling (855) 859-2056, or outside of North America by calling +1-404-537-3406, pass code: 55214752. The replay will also be available at meadjohnson.com. About Mead Johnson Mead Johnson, a global leader in pediatric nutrition, develops, manufactures, markets and distributes more than 70 products in over 50 countries worldwide. The company's mission is to nourish the world’s children for the best start in life. The Mead Johnson name has been associated with science-based pediatric nutrition products for over 100 years. The company's "Enfa" family of brands, including Enfamil® infant formula, is the world's leading brand franchise in pediatric nutrition. For more information, visit meadjohnson.com.

GLENVIEW, Ill.--(BUSINESS WIRE)--Mead Johnson Nutrition Company (NYSE: MJN) will release its third quarter and year-to-date 2014 earnings on Thursday, October 23, 2014, before the market opens. The company will host a conference call at 8:30 a.m. CDT that same day, during which company executives will review third quarter and year-to-date 2014 financial results and respond to questions from analysts and investors. The call will be broadcast over the Internet at http://investors.meadjohnson.com. Security analysts and investors wishing to participate by telephone should call (877) 359-9508, pass code: Mead Johnson. Callers outside of North America should call +1-224-357-2393 to be connected. A replay of the conference call will be available through midnight CDT October 30, 2014 by calling (855) 859-2056, or outside of North America by calling +1-404-537-3406, passcode: 8709235. The replay will also be available at meadjohnson.com. About Mead Johnson Mead Johnson, a global leader in pediatric nutrition, develops, manufactures, markets and distributes more than 70 products in over 50 countries worldwide. The company’s mission is to nourish the world’s children for the best start in life. The Mead Johnson name has been associated with science-based pediatric nutrition products for over 100 years. The company’s “Enfa” family of brands, including Enfamil® infant formula, is the world’s leading brand franchise in pediatric nutrition. For more information, visit meadjohnson.com.

GLENVIEW, Ill.--(BUSINESS WIRE)--Mead Johnson Nutrition Company (NYSE: MJN) will release its second quarter and first-half 2014 earnings on Tuesday, July 22, 2014, before the market opens. The company will host a conference call at 8:00 a.m. CDT that same day, during which company executives will review second quarter and first-half financial results and respond to questions from analysts and investors. The call will be broadcast over the Internet at http://investors.meadjohnson.com. Security analysts and investors wishing to participate by telephone should call (877) 359-9508, pass code: Mead Johnson. Callers outside of North America should call +1-224-357-2393 to be connected. A replay of the conference call will be available through midnight CDT July 29, 2014 by calling (855) 859-2056 or outside of North America by calling +1-404-537-3406, passcode: 66218573. The replay will also be available at meadjohnson.com. About Mead Johnson Mead Johnson, a global leader in pediatric nutrition, develops, manufactures, markets and distributes more than 70 products in over 50 countries worldwide. The company’s mission is to nourish the world’s children for the best start in life. The Mead Johnson name has been associated with science-based pediatric nutrition products for over 100 years. The company’s “Enfa” family of brands, including Enfamil® infant formula, is the world’s leading brand franchise in pediatric nutrition. For more information, visit meadjohnson.com.