Sensient Technologies Corporation reported that diluted earnings per share for the fourth quarter of 2007 rose 18.2 percent to 39 cents, compared to 33 cents in last year's fourth quarter. Diluted earnings per share for the 12 months ended Dec. 31, 2007, were up 14.6 percent to $1.65, compared to $1.44 in 2006.
Revenue reached a record level of $300.9 million for the fourth quarter, up 10.3 percent from the comparable period in 2006. Revenue for the twelve months ended Dec. 31, 2007, was $1.2 billion, an increase of 7.8 percent over the prior year. Foreign currency translation had a favorable impact on revenue of 5 percent and 4 percent, respectively, for the fourth quarter and year.
"This quarter marks our eighth consecutive quarter of strong earnings growth," said Kenneth P. Manning, chairman and CEO of Sensient Technologies. "We had an outstanding year. Each of our operating groups contributed to the excellent results, and we expect our businesses to perform well in 2008."
The Flavors & Fragrances Group reported record fourth quarter revenue and operating income. Revenue for the quarter increased 7.7 percent to $199.4 million, compared to $185 million in last year's comparable period. Fourth quarter operating income was up 11.3 percent to $30.1 million, compared to $27 million in the fourth quarter of 2006. Revenue for the twelve months ended Dec. 31, 2007, increased 6.9 percent to $783.7 million, and operating income was up 12.3 percent to $117.3 million. Group revenue for the quarter and 12 month period benefited from favorable foreign currency translation and from improved pricing and higher volumes. Operating income for both periods rose on the higher sales. Group operating margins in 2007 improved 80 basis points to 15 percent.
The Color Group's fourth quarter revenue increased 14.7 percent to $95.6 million, compared to $83.4 million in last year's comparable period. Operating income for the quarter was up 20.37 percent to $16.6 million, compared to $13.8 million reported in the fourth quarter of 2006. Revenue for the twelve months ended Dec. 31, 2007, increased 7.97 percent to $377.9 million and operating income was up 12.77 percent to $67 million. Color Group revenue for the quarter and year reflects favorable foreign currency translation and solid volume growth in food and beverage colors. Volume growth in cosmetic colors was also strong. Group operating margins in 2007 improved 70 basis points to 17.77 percent.