UPDATE 3-McCormick profit tops view; ups '08 sales outlook

(Adds share activity, byline)

By Martinne Geller

NEW YORK, March 27 (Reuters) - McCormick & Co Inc (MKC.N: Quote, Profile, Research, Stock Buzz) reported higher-than-expected quarterly profit on Thursday, helped by price increases, cost-cutting and the weaker dollar, sending the spice maker's shares up nearly 7 percent to a three-month high.

McCormick said profit was $51.4 million, or 39 cents a share, in the first quarter, ended Feb. 29, compared with $44.2 million, or 33 cents a share, a year earlier.

Excluding restructuring charges, the company earned 41 cents per share, topping analysts' average estimate of 38 cents per share, according to Reuters Estimates.

Quarterly sales rose to $724.0 million from $652.6 million a year ago, driven by a 10 percent increase in sales to consumers, and a 13 percent increase in the company's industrial business, which sells seasonings to restaurants and food manufacturers.

"Margins remain under pressure from higher and more volatile commodity costs," said Chief Executive Alan Wilson, referring to soy oil -- which is used to make mayonnaise -- and other commodities, including cheese and flour.

"However, we have taken pricing actions early in the year and expect to continue to see the benefit from these actions in future quarters. Cost savings from our restructuring plan and supply chain initiatives are providing an additional offset to higher costs."

McCormick has recently announced the acquisition of Billy Bee Honey Products Ltd for $75 million and its intention to buy Unilever PLC's (ULVR.L: Quote, Profile, Research, Stock Buzz) Lawry's business for $605 million.