Mead Johnson Nutrition Updates China Statement
Mead Johnson Nutrition Updates China Statement
GLENVIEW, Ill.--(BUSINESS WIRE)-- Mead Johnson Nutrition Company (NYS: MJN) announced today that Mead Johnson China continues to fully cooperate with the recent antitrust review of resale prices which was initiated by the Bureau of Price Supervision and Anti-Monopoly of China's National Development and Reform Commission (NDRC). Mead Johnson has also launched a self-review to ensure compliance with the antitrust laws of China.
For the sake of the healthy development of the industry, and to reinforce the trust and support of Chinese consumers, the company will optimize its marketing and sales strategy and adjust current pricing and promotional plans. As a result of this adjustment, Mead Johnson China will reduce the ex-factory price of its main products by 7%-15% as of July 16, 2013. In addition, Mead Johnson will launch new promotional campaigns through various channels to further benefit consumers.
Mead Johnson Nutrition strives to provide safe and high-quality products at good value to all consumers and continues to attach great importance to China. Correspondingly, the company is committed to fully supporting and cooperating with the relevant authorities, as well as promoting the healthy development of the industry.
Mead Johnson Nutrition intends to update its earnings guidance for 2013 when the company reports second quarter earnings on July 25, 2013. At this early point, the company is looking at potential offsets throughout its global operations.
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; (12) legislative, regulatory or judicial action that may adversely affect the company's ability to advertise its products or maintain product margins; 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 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.
KEYWORDS: United States Asia Pacific North America China Illinois
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