Sensient Technologies Reports Results for 2Q 2017

Sensient Technologies reported earnings per share from continuing operations of 69 cents in the second quarter of 2017 compared to 55 cents in last year’s second quarter. Revenue was $338.5 million in this year’s second quarter compared to $360.8 million in the comparable period last year. Operating income was $44.4 million in the second quarter of 2017 and $43.7 million in last year’s second quarter.
 
For the six months ended June 30, 2017 and 2016, earnings per share from continuing operations were 99 cents and $1.25, respectively. Revenue was $679.9 million in the first six months of 2017 and $703.3 million in the first six months of 2016. Operating income was $68.4 million and $91.2 million in the first six months of 2017 and 2016, respectively.
 
Cash provided by operating activities was $25.2 million in this year’s second quarter and $62.8 million in the first six months of the year. In 2016, cash provided by operating activities was $54.7 million in the second quarter and $100.8 million in the first six months. Cash flow in 2017 has primarily been impacted by the higher use of working capital and the timing of tax payments.
 
The Color Group reported revenue of $132.9 million in the quarter and $132.2 million in last year’s second quarter, an increase of approximately 1%. Operating income increased approximately 3% to $29.1 million in the quarter. The Group’s higher profit was driven by strong results in Cosmetics and a solid performance by the North American Food Color business.
 
In the first six months of 2017, the Color Group reported revenue of $267.0 million, an increase of approximately 3% over $258.7 million reported in the first six months of 2016. Segment operating income increased approximately 5% to $59.3 million in the first six months of 2017 compared to $56.4 million reported in the first six months of 2016.
 
The Flavors & Fragrances Group reported revenue of $185.6 million and $209.5 million in the second quarters of 2017 and 2016, respectively. Operating income was $28.5 million, in the quarter compared to $35.5 million in last year’s quarter.
 
In the first six months of 2017, the Flavors & Fragrances Group reported revenue of $372.4 million compared to $408.0 million in the first six months of 2016. Segment operating income was $57.3 million in the first six months of 2017 and $63.1 million in the first six months of 2016.
 
The Asia Pacific Group reported revenue of $28.9 million in the current quarter compared to $30.1 million in the comparable period last year. Segment operating income was $3.8 million in the quarter compared to $5.7 million in last year’s second quarter. Revenue for the first six months of 2017 and 2016 was $58.6 million and $58.3 million, respectively. Segment operating income was $9.0 million in the first six months of 2017 and $11.2 million in last year’s first six months.
 
“The Color Group had another solid quarter, led by the Cosmetics and North American Food Colors businesses,” said Paul Manning, chairman, president and CEO of Sensient Technologies. “The Flavors & Fragrances Group has largely completed its restructuring activities and can now focus on new product development and other growth initiatives. I remain very optimistic about the company’s future.”