Mead Johnson Nutrition Settles China Probe

(RTTNews) - Mead Johnson Nutrition Co. (MJN) on Tuesday announced the resolution of the antitrust review being conducted into the company's business in China by the National Development and Reform Commission.

As a result of the review, the Commission has assessed administrative penalties against Mead Johnson and a number of other milk formula companies doing business in China. Mead Johnson was assessed a penalty of RMB 203.76 million, or about US $33 million, which the company does not plan to contest.

The penalty and associated legal costs will reduce the company's full year 2013 earnings by about $0.12 per share. As a result, the company expects its 2013 earnings to be in the range of $3.04 to $3.12 per share. However, the company reiterated its 2013 adjusted earnings outlook of $3.22 to $3.30 per share. Analysts polled by Thomson Reuters currently expect the company to earn $3.26 per share for the full year 2013.