Sensient Technologies Reports Results for the Quarter Ended Sept. 30, 2015

Sensient Technologies reported earnings per share from continuing operations of 61 cents in the third quarter of 2015 compared to 47 cents in last year’s third quarter. Revenue was $344.5 million in this year’s third quarter compared to $364.5 million in the comparable period last year.
 
Operating income was $43.2 million in the third quarter of 2015 compared to $36.1 million in last year’s third quarter. The consolidated operating margin was 12.5% in the quarter compared to 9.9% in last year’s third quarter. Foreign currency translation had a significant impact on the third quarter results, reducing reported revenue by 8%, operating income by 11%, and earnings per share by 13%.
 
For the nine months ended Sept. 30, 2015, reported earnings per share from continuing operations were $1.89 compared to $1.13 per share in last year’s comparable period. Revenue was $1.0 billion in the first nine months of 2015 compared to $1.1 billion in the first nine months of 2014. Operating income from continuing operations was $134.7 million and $94.4 million in the first nine months of 2015 and 2014, respectively. Foreign currency translation reduced revenue by 8% and operating income by 13% in the nine months ended September 30, 2015.
 
For the nine months ended Sept. 30, 2015, adjusted earnings per share from continuing operations were $2.34 compared to $2.31 in the first nine months of 2014. Adjusted operating income was $163.3 million and $173.2 million for the first nine months of 2015 and 2014, respectively.
 
“Sensient performed well in the third quarter,” said Paul Manning, president and CEO of Sensient Technologies Corporation. “The Flavors and Fragrances Group delivered solid growth and continues to make progress on our new strategy and on restructuring activities. The Color Group remains strong and most of its businesses performed well in the quarter. I am very optimistic about the future.”
 
The Flavors & Fragrances Group reported third quarter revenue of $207.4 million, compared to $216.6 million reported in last year’s third quarter. Operating income was $31.4 million compared to $30.6 million in last year’s third quarter. The Flavors & Fragrances Group’s operating margin was 15.1% in the quarter compared to 14.1% in the comparable period last year as several business units reported solid local currency operating profit growth in the quarter; including North America Beverage, North America Sweet, Europe Sweet and Fragrances. Foreign currency translation reduced both revenue and operating income in the third quarter, by 7% and 3%, respectively.
 
The Flavors & Fragrances Group reported revenue of $618.0 million and $648.5 million in the first nine months of 2015 and 2014, respectively. Operating income was $94.4 million and $95.0 million in the first nine months of 2015 and 2014, respectively. Foreign currency translation reduced both revenue and operating income in the year to date period by 7% and 3%, respectively.
 
The Color Group reported revenue of $116.4 million in the quarter compared to $128.1 million in last year’s third quarter. Operating income was $22.9 million in the third quarter compared to $28.8 million in last year’s third quarter. Foreign currency continued to have a significant impact, reducing revenue by 10%, and operating income by 9% in the quarter. Most of the Color Group’s businesses performed well in the third quarter.
 
In local currency, the cosmetic colors and pharmaceutical businesses reported double-digit operating income growth, and the food color business also reported growth in the quarter. Favorable results from these businesses were more than offset by the decline in the specialty inks business. The specialty inks business will continue to face difficult comparisons for the rest of 2015 as a result of a now resolved quality problem and unfavorable currency issues.
 
For the first nine months of 2015, Color Group revenue was $356.3 million compared to $393.4 million in the comparable period last year. Operating income was $73.8 million for the first nine months of 2015 compared to $89.3 million in the first nine months of 2014. Foreign currency translation has had a significant impact on both revenue and operating income, reducing both by over 9% in the year to date period.
 
The Corporate & Other segment, which includes the Company’s operations in Asia Pacific, reported revenue of $31.5 million and $32.8 million in the third quarters of 2015 and 2014, respectively. For the nine months ended September 30, 2015, revenue was $97.0 million compared to $100.4 million reported in the first nine months of last year. Foreign currency translation reduced revenue by 9% and 6%, respectively, in the current quarter and first nine months of 2015.