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Sensient Reports Record Results for 2Q2011



Published July 22, 2011
Sensient Technologies Corporation reported all-time quarterly records for revenue, operating income and earnings per share for the three months ended June 30, 2011, and both the Color and Flavors & Fragrances groups reported all-time quarterly highs for revenue and operating income.

Diluted earnings per share for the quarter were 67 cents, a 15.5% increase over the 58 cents reported in the second quarter of 2010. Consolidated revenue for the second quarter increased 12.9% to $377 million compared to $334 million reported in last year's second quarter. Foreign currency translation increased revenue and operating income by approximately 6% in the quarter.

Revenue for the six months ended June 30, 2011, was $726.7 million, a 12.1% increase over the $648.0 million reported in the first half of 2010. Diluted earnings per share increased 13.2% to $1.20 compared to $1.06 reported in last year's first half. Foreign currency translation increased revenue and operating income by approximately 4% for the year-to-date period.

For the six months ended June 30, 2011, cash provided by operating activities increased to $66.8 million, a 4.1% increase from the $64.2 million reported in last year's first half. Total debt at June 30, 2011, was $331.4 million, a reduction of $12.5 million during the quarter and $57.7 million during the last twelve months.

"Our businesses continue to provide outstanding results, and I am very pleased with the Company's performance in the second quarter," said Kenneth P. Manning, chairman and CEO of Sensient Technologies Corporation. "All of our operating groups have further opportunities for growth, and we remain optimistic for the future."

The Color Group reported revenue of $132.4 million in the second quarter, an increase of 17.2% over the $113.0 million reported in last year's second quarter. Operating income for the second quarter increased 18.0% to $24.6 million from $20.9 million in the second quarter of 2010. Favorable foreign currency translation increased revenue and operating profit by approximately 7% and 8%, respectively. Revenue grew as a result of solid volume increases and the demand for natural colors remains strong.

The Flavors & Fragrances Group reported second quarter revenue of $226.5 million, an increase of 10.5% over the $205.0 million reported in the second quarter of 2010. Second quarter operating income increased 8.8% to $36.1 million from $33.2 million reported in last year's second quarter. Foreign currency translation increased revenue and operating profit by approximately 5% and 4%, respectively.

Corporate & Other, which includes the Company's operations in Asia Pacific and China, reported revenue of $33.6 million for the second quarter, an increase of 24.1% from the prior year's second quarter revenue of $27.1 million.

The Board of Directors of Sensient Technologies declared a regular quarterly cash dividend on its common stock of $0.21 per share. The cash dividend will be paid on Sept. 1, 2011, to shareholders of record on Aug. 8, 2011.


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