Sensient Technologies Reports Results for 4Q 2019

Sensient Technologies reported a loss per share of 40 cents in the fourth quarter of 2019 compared to diluted earnings per share of 78 cents in the fourth quarter of 2018. Revenue was $318.6 million in this year’s fourth quarter compared to $324.6 million in the comparable period last year. Operating loss was $14.5 million in the fourth quarter of 2019 compared to operating income of $45.3 million in last year’s fourth quarter. Foreign currency translation did not have a significant impact on revenue, operating income or earnings per share in the quarter.

The 2019 reported fourth quarter results include divestiture & other related costs, primarily non-cash impairment charges, which decreased net earnings $43.2 million ($1.02 per diluted share).

The Color Group reported revenue of $125.4 million in the quarter compared to $127.4 million in last year’s fourth quarter. Segment operating income was $19.7 million in the quarter compared to $21.9 million in last year’s comparable period. Foreign currency translation decreased revenue by approximately 1% and operating income by approximately 2% in the quarter.

Continued growth in natural colors in the Food & Beverage Colors business and growth in the Pharmaceutical business was offset by lower volumes in inks and some industrial product lines. Color Group operating income was lower in the quarter primarily due to the lower segment sales and unfavorable product mix.

The Flavors & Fragrances Group reported fourth quarter revenue of $169.1 million compared to $175.5 million reported in the comparable period last year. Higher revenue in the finished flavors and extracts product lines was more than offset by lower revenue in certain flavor ingredient product lines. Segment operating income was $14.2 million in the fourth quarter compared to $22.3 million reported in the fourth quarter of 2018. The Group’s lower profit was primarily a result of the lower segment sales and production volumes, costs associated with certain customer bankruptcy charges, and higher raw material costs.

The Asia Pacific Group reported revenue of $30.6 million in the quarter compared to $31.1 million reported in the comparable prior year period. Segment operating income was $5.6 million in both periods. Foreign currency translation increased segment revenue by approximately 2% and increased operating income by approximately 6% in the quarter.

Corporate & Other reported operating costs of $53.9 million in the current quarter compared to $4.6 million in the fourth quarter of 2018. The higher costs are primarily due to divestiture and other costs of $45.9 million in the current period and the reduction in non-cash performance-based compensation expense in last year’s fourth quarter.