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Part II
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS, continued
34
NUTRITION & HEALTH
(Dollars in millions) 2015 2014 2013
Net sales $ 3,256 $ 3,529 $ 3,473
Operating earnings $ 373 $ 369 $ 286
Operating earnings margin 11% 10% 8%
2015 2014
Change in net sales from prior period due to:
Local Price and Product Mix — % 1 %
Currency (9)% (2)%
Volume 2 % 3 %
Portfolio and Other (1)% — %
Total change (8)% 2 %
2015 versus 2014 Full year 2015 segment net sales of $3.3 billion decreased 8 percent, primarily due to the negative impact of
currency. Volume growth in probiotics, ingredient systems, texturants and cultures was partially offset by lower volumes in specialty
proteins due to competitive challenges.
2015 operating earnings and operating earnings margin increased as cost reductions and continued productivity improvements and
volume gains were mostly offset by the negative impact from currency of $53 million and the absence of the prior year $18 million
gain from the termination of a distribution agreement.
2014 versus 2013 Full year 2014 segment net sales of $3.5 billion increased 2 percent, as volume growth in specialty proteins,
cultures and probiotics, was partially offset by a negative impact from currency.
2014 operating earnings and operating earnings margin increased from improved product mix, volume growth, productivity
improvements and a gain of $18 million from the termination of a distribution agreement, partially offset by the negative impact
from currency.
Outlook In 2016, market conditions are expected to remain challenging with currency headwinds persisting, primarily in Europe
and Latin America. Full year 2016 segment net sales are expected to be down low-single digits percent as volume growth, driven
by investments in probiotics and cultures, is more than offset by the negative impact of currency. Full year operating earnings are
expected to be up high-teens percent benefiting from cost reductions and productivity improvements, further expanding operating
margins.