02.10.17
Sensient Technologies reported earnings per share (EPS) from continuing operations of 70 cents in the fourth quarter of 2016 compared to 43 cents in last year’s fourth quarter. Revenue was $330.2 million in this year’s fourth quarter compared to $339.2 million in the comparable period last year. Operating income was $43.3 million in the fourth quarter of 2016 and $31.6 million in last year’s fourth quarter. Foreign currency translation reduced revenue by approximately 2%, operating income by approximately 3%, and earnings per share by approximately 5% in the fourth quarter.
For the year ended Dec. 31, 2016, reported earnings per share from continuing operations were $2.74 compared to $2.32 per share last year. Revenue was approximately $1.4 billion in both 2016 and 2015. Operating income from continuing operations was $185.6 million and $166.3 million in the years ended December 31, 2016 and 2015, respectively. Foreign currency translation reduced revenue and operating income by approximately 2% and earnings per share by approximately 3% in 2016.
Sensient’s adjusted earnings per share increased approximately 13% to 80 cents in this year’s fourth quarter, compared to 71 cents in the fourth quarter of 2015. Adjusted operating income increased approximately 6% in the fourth quarter, to $49.5 million from $46.7 million in last year’s fourth quarter.
For the year ended December 31, 2016, adjusted earnings per share from continuing operations was $3.21, an increase of approximately 5% from last year’s result of $3.05. Adjusted operating income was $211.7 million and $210.0 million for the years ended December 31, 2016 and 2015, respectively.
Cash provided by operating activities was $222.5 million in 2016 and $128.0 million in 2015. The stronger cash flows were driven by higher earnings, better management of working capital and the benefit from the accounts receivable securitization transaction.
“I am very pleased with the Company’s performance in 2016,” said Paul Manning, chairman, president and CEO of Sensient Technologies Corporation. “The Color Group had an outstanding year delivering solid profit and revenue growth, led by strong performances from the Cosmetics and Food Colors businesses. The Flavors and Fragrances Group performed very well and improved its operating margin by at least 100 basis points in each of the last three quarters, and Asia Pacific also delivered solid profit and revenue growth for the year.”
The Color Group reported revenue of $119.0 million in the quarter and $117.5 million in last year’s fourth quarter, an increase of 1.3%. Operating income increased 4.6% to $22.6 million in the quarter. The Group’s strong fourth quarter results were driven by the Cosmetics business, which delivered double-digit revenue and profit growth in the quarter.
For the full year, Color Group revenue increased approximately 5% to $502.1 million, from $480 million in 2015. Operating income was $104.8 million in 2016, an increase of 8.5% compared to $96.6 million in 2015. The Color Group’s operating margin was 20.9% for the year, an increase of 80 basis points from last year’s margin of 20.1%. The Cosmetics and Food Colors businesses both performed very well in 2016 driven by strong demand for cosmetics and natural colors, respectively, and the Inks business improved solidly over last year’s result.
The Flavors & Fragrances Group reported revenue of $186.9 million and $201.0 million in the fourth quarters of 2016 and 2015, respectively. Operating income increased approximately 3% to $28.4 million, from $27.5 million in last year’s fourth quarter. The Flavors & Fragrances Group’s operating margin increased 150 basis points to 15.2% in the quarter.
The Flavors & Fragrances Group reported revenue of $795.3 million for the year ended Dec. 31, 2016, a decrease of approximately 3% from $819.0 million reported in 2015. Operating income increased to $123.5 million in 2016, from $121.9 million in 2015. The Flavors & Fragrances Group operating margin continues to steadily improve, increasing to 15.5% in 2016 from 14.9% in 2015.
The Asia Pacific Group reported revenue of $32.5 million and $29.7 million in the fourth quarters of 2016 and 2015, respectively, an increase of approximately 9%. Operating income was $6.5 million in the quarter, an increase of approximately 4% from last year’s fourth quarter result of $6.2 million. For the full year, the Asia Pacific Group revenue increased approximately 9%, to $127.5 million in 2016, from $116.7 million last year. Operating income increased approximately 6% to $25.2 million in 2016, from $23.7 million in 2015.
Sensient expects 2017 earnings per share from continuing operations to be between $2.76 and $2.86, which includes an estimated 59 cents of restructuring and other costs.
For the year ended Dec. 31, 2016, reported earnings per share from continuing operations were $2.74 compared to $2.32 per share last year. Revenue was approximately $1.4 billion in both 2016 and 2015. Operating income from continuing operations was $185.6 million and $166.3 million in the years ended December 31, 2016 and 2015, respectively. Foreign currency translation reduced revenue and operating income by approximately 2% and earnings per share by approximately 3% in 2016.
Sensient’s adjusted earnings per share increased approximately 13% to 80 cents in this year’s fourth quarter, compared to 71 cents in the fourth quarter of 2015. Adjusted operating income increased approximately 6% in the fourth quarter, to $49.5 million from $46.7 million in last year’s fourth quarter.
For the year ended December 31, 2016, adjusted earnings per share from continuing operations was $3.21, an increase of approximately 5% from last year’s result of $3.05. Adjusted operating income was $211.7 million and $210.0 million for the years ended December 31, 2016 and 2015, respectively.
Cash provided by operating activities was $222.5 million in 2016 and $128.0 million in 2015. The stronger cash flows were driven by higher earnings, better management of working capital and the benefit from the accounts receivable securitization transaction.
“I am very pleased with the Company’s performance in 2016,” said Paul Manning, chairman, president and CEO of Sensient Technologies Corporation. “The Color Group had an outstanding year delivering solid profit and revenue growth, led by strong performances from the Cosmetics and Food Colors businesses. The Flavors and Fragrances Group performed very well and improved its operating margin by at least 100 basis points in each of the last three quarters, and Asia Pacific also delivered solid profit and revenue growth for the year.”
The Color Group reported revenue of $119.0 million in the quarter and $117.5 million in last year’s fourth quarter, an increase of 1.3%. Operating income increased 4.6% to $22.6 million in the quarter. The Group’s strong fourth quarter results were driven by the Cosmetics business, which delivered double-digit revenue and profit growth in the quarter.
For the full year, Color Group revenue increased approximately 5% to $502.1 million, from $480 million in 2015. Operating income was $104.8 million in 2016, an increase of 8.5% compared to $96.6 million in 2015. The Color Group’s operating margin was 20.9% for the year, an increase of 80 basis points from last year’s margin of 20.1%. The Cosmetics and Food Colors businesses both performed very well in 2016 driven by strong demand for cosmetics and natural colors, respectively, and the Inks business improved solidly over last year’s result.
The Flavors & Fragrances Group reported revenue of $186.9 million and $201.0 million in the fourth quarters of 2016 and 2015, respectively. Operating income increased approximately 3% to $28.4 million, from $27.5 million in last year’s fourth quarter. The Flavors & Fragrances Group’s operating margin increased 150 basis points to 15.2% in the quarter.
The Flavors & Fragrances Group reported revenue of $795.3 million for the year ended Dec. 31, 2016, a decrease of approximately 3% from $819.0 million reported in 2015. Operating income increased to $123.5 million in 2016, from $121.9 million in 2015. The Flavors & Fragrances Group operating margin continues to steadily improve, increasing to 15.5% in 2016 from 14.9% in 2015.
The Asia Pacific Group reported revenue of $32.5 million and $29.7 million in the fourth quarters of 2016 and 2015, respectively, an increase of approximately 9%. Operating income was $6.5 million in the quarter, an increase of approximately 4% from last year’s fourth quarter result of $6.2 million. For the full year, the Asia Pacific Group revenue increased approximately 9%, to $127.5 million in 2016, from $116.7 million last year. Operating income increased approximately 6% to $25.2 million in 2016, from $23.7 million in 2015.
Sensient expects 2017 earnings per share from continuing operations to be between $2.76 and $2.86, which includes an estimated 59 cents of restructuring and other costs.