04.20.15
Sensient Technologies reported earnings per share from continuing operations of 65 cents in the first quarter of 2015 compared to five cents in last year’s first quarter. Reported operating income was $46.4 million and $8.6 million in the first quarters of 2015 and 2014, respectively.
Sensient initiated a restructuring plan in 2014 to eliminate underperforming operations, consolidate manufacturing facilities, and improve operational efficiencies within the company. The restructuring costs related to this plan are included in the reported results.
Sensient’s first quarter adjusted earnings per share were 76 cents, an increase of 7.0% over last year’s adjusted earnings per share of 71 cents. Consolidated revenue was $346.2 million and $367.1 million in the first quarters of 2015 and 2014, respectively.
Adjusted operating income was $53.6 million in this year’s first quarter compared to $54.8 million in the first quarter of 2014, and the company’s adjusted operating margin increased 60 basis points to 15.5%. Foreign currency had a significant impact on the first quarter results, reducing both revenue and adjusted operating income by approximately 7%.
Cash provided by operating activities increased 54% to $30.6 million in the quarter, compared to $19.8 million in last year’s comparable quarter. Free cash flow, representing cash flow from operations less net capital expenditures, was $29.7 million in the first quarter, which includes $12.6 million of proceeds from the sale of two facilities. The strong cash flow was driven by higher cash earnings and inventory reductions. The company purchased approximately 950,000 shares of its common stock in the quarter.
“We delivered a solid performance in the first quarter,” said Paul Manning, president and CEO of Sensient Technologies Corporation. “The Flavors & Fragrances Group grew both revenue and operating income in local currency, and most of the businesses in the Color Group also reported local currency profit growth. I was also pleased with our cash flow results and the inventory reduction achieved in the quarter. Our strategy is working, and we remain committed to delivering sustainable long term value to our shareholders.”
The Color Group reported revenue of $120.5 million and $133.0 million, in the first quarters of 2015 and 2014, respectively. Operating income was $26.1 million in the quarter compared to $29.8 million in last year’s first quarter. Foreign currency translation reduced both revenue and operating income by approximately 9% in the first quarter.
The Flavors & Fragrances Group reported first quarter revenue of $206.0 million compared to the $214.3 million reported in the first quarter of 2014. As reported, operating income increased one% in the quarter to $30.5 million, from $30.2 million in the first quarter of 2014. Foreign currency translation reduced revenue by 7.0% and operating income by 3.1% in the quarter.
Foreign currency will have a significant impact on the company’s 2015 results. The Company’s initial estimate of the currency impact on 2015 earnings was approximately 23 cents per share. Since the beginning of the year, the U.S. dollar has continued to strengthen compared to most currencies, and the updated estimate of the currency impact is now approximately 29 cents per share. While the outlook for the company’s operating performance has not changed, Sensient is revising its adjusted earnings per share guidance to a range of $3.00 to $3.09 due to the increased currency impact. The previous guidance was $3.02 to $3.12.
Sensient initiated a restructuring plan in 2014 to eliminate underperforming operations, consolidate manufacturing facilities, and improve operational efficiencies within the company. The restructuring costs related to this plan are included in the reported results.
Sensient’s first quarter adjusted earnings per share were 76 cents, an increase of 7.0% over last year’s adjusted earnings per share of 71 cents. Consolidated revenue was $346.2 million and $367.1 million in the first quarters of 2015 and 2014, respectively.
Adjusted operating income was $53.6 million in this year’s first quarter compared to $54.8 million in the first quarter of 2014, and the company’s adjusted operating margin increased 60 basis points to 15.5%. Foreign currency had a significant impact on the first quarter results, reducing both revenue and adjusted operating income by approximately 7%.
Cash provided by operating activities increased 54% to $30.6 million in the quarter, compared to $19.8 million in last year’s comparable quarter. Free cash flow, representing cash flow from operations less net capital expenditures, was $29.7 million in the first quarter, which includes $12.6 million of proceeds from the sale of two facilities. The strong cash flow was driven by higher cash earnings and inventory reductions. The company purchased approximately 950,000 shares of its common stock in the quarter.
“We delivered a solid performance in the first quarter,” said Paul Manning, president and CEO of Sensient Technologies Corporation. “The Flavors & Fragrances Group grew both revenue and operating income in local currency, and most of the businesses in the Color Group also reported local currency profit growth. I was also pleased with our cash flow results and the inventory reduction achieved in the quarter. Our strategy is working, and we remain committed to delivering sustainable long term value to our shareholders.”
The Color Group reported revenue of $120.5 million and $133.0 million, in the first quarters of 2015 and 2014, respectively. Operating income was $26.1 million in the quarter compared to $29.8 million in last year’s first quarter. Foreign currency translation reduced both revenue and operating income by approximately 9% in the first quarter.
The Flavors & Fragrances Group reported first quarter revenue of $206.0 million compared to the $214.3 million reported in the first quarter of 2014. As reported, operating income increased one% in the quarter to $30.5 million, from $30.2 million in the first quarter of 2014. Foreign currency translation reduced revenue by 7.0% and operating income by 3.1% in the quarter.
Foreign currency will have a significant impact on the company’s 2015 results. The Company’s initial estimate of the currency impact on 2015 earnings was approximately 23 cents per share. Since the beginning of the year, the U.S. dollar has continued to strengthen compared to most currencies, and the updated estimate of the currency impact is now approximately 29 cents per share. While the outlook for the company’s operating performance has not changed, Sensient is revising its adjusted earnings per share guidance to a range of $3.00 to $3.09 due to the increased currency impact. The previous guidance was $3.02 to $3.12.