Sensient Technologies reports earnings for the quarter ended June 30, 2009

Citation

(2009), "Sensient Technologies reports earnings for the quarter ended June 30, 2009", Pigment & Resin Technology, Vol. 38 No. 6. https://doi.org/10.1108/prt.2009.12938fab.029

Sensient Technologies reports earnings for the quarter ended June 30, 2009

Article Type: Industry news From: Pigment & Resin Technology, Volume 38, Issue 6

Sensient Technologies Corporation reported that diluted earnings per share for the three months ended June 30, 2009, reached 53 cents. Diluted earnings per share for the prior year's comparable period were also 53 cents. Second quarter earnings, as stated in local currency, would be approximately 6 cents per share higher than second quarter 2008 reported earnings. Consolidated revenue for the second quarter of 2009 was $304.0 million compared to $332.8 million in the second quarter of 2008. Foreign currency translation reduced second quarter revenues by approximately 8 percent. On a local currency basis, consolidated quarterly revenue was comparable to the prior year. Diluted earnings per share for the six months ended June 30, 2009, were up 2.1 percent to 98 ¢ compared to 96 ¢ in last year's first half. Revenue for the first six months of this year was $586.8 million, compared to $640.2 million in the first half of 2008. Foreign currency translation decreased revenues in the year-to-date period by approximately 9 percent. As reported in local currency, revenue for the first six months of the year was comparable to the prior year. Cash provided by operating activities in the second quarter rose sharply to $37.9 million, compared to $28.8 million in the prior year's comparable period. For the six months ended June 30, 2009, cash provided by operating activities was $55.4 million, an increase of 44.1 percent over the prior year's first half. Total debt at June 30, 2009, was $464.9 million, a reduction of $15.0 million since the beginning of the year and $44.6 million in the last 12 months. “The strategy of reducing debt and investing in our business has allowed the company to maintain earnings despite a challenging economic environment,” said Kenneth P. Manning, Chairman, and CEO of Sensient Technologies. “We expect to deliver higher earnings this year and in the future.” The Flavors and Fragrances Group reported revenue for the second quarter of 2009 of $197.6 million compared to second quarter 2008 revenue of $211.5 million. Group operating profit increased 1.6 percent, to a record level of $34.2 million. Revenue for the first six months of 2009 was $382.1 million and operating income was $64.2 million. In the second quarter, unfavorable foreign currency comparisons reduced Flavors and Fragrances Group revenue and operating income by approximately 8 and 7 percent, respectively. On a local currency basis, quarterly revenue for the Group was up 1 percent as a result of solid revenue increases in North America. Local currency operating income increased approximately 8 percent as price increases offset higher raw material costs. Group operating margins improved 140 basis points in comparison to the prior year. The Color Group reported second quarter revenue of $93.7 million in comparison to $107.3 million in last year's second quarter. Operating income for the quarter was $15.0 million compared to prior year operating income of $19.3 million. Revenue for the first six months of 2009 was $180.8 million and operating income was $28.7 million. Unfavorable foreign currency comparisons reduced second quarter Color Group revenue and operating income by approximately 10 percent. As stated in local currency, the Color Group's second quarter revenue and operating income were down approximately 3 and 12 percent, respectively. Local currency sales and profits from the Group's non-food colors were lower in the quarter. Sales of food and beverage colors, as stated in local currency, were up approximately 3 percent, but profits within this product line were reduced by higher raw material costs. The impact of higher raw material costs is expected to subside over the remainder of the year, resulting in improved Color Group margins. Sensient continues to expect 2009 diluted earnings per share to be within a range of $1.90 and $1.95.