(RTTNews) - International Flavors & Fragrances Inc. (IFF: News ), a supplier of flavors and scents to consumer products makers, on Wednesday said third-quarter profit declined over 8% from last year, hurt by charges related to the rationalization of its two European facilities and the change in the Chief Executive Officer position. Looking ahead, the company's expects sales to grow in the fourth quarter, despite difficult economic conditions.

The company's net income for the third quarter declined to $52.80 million from $57.68 million reported last year. Earnings dropped to $0.66 per share from $0.73 per share in the previous year. For the second quarter, the company reported net income of $48.08 million or $0.60 per share.

The latest quarterly results included an expense of $0.16 per share related to the rationalization of two European facilities and the change in the Chief Executive Officer position. Excluding non-recurring items, earnings for the quarter were $0.82 per share.

On average, five analysts polled by Thomson Reuters expected the company to earn $0.72 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter edged down 1% to $612.63 million from $617.54 million in the previous year. Excluding the impact of foreign currency, revenue rose 2% from last year. Analysts expected the company to report revenue of $597.03 million for the quarter. The company's second-quarter net sales were $568.26 million.

Operating profit for the third quarter declined to $86.71 million from $100.61 million.
Net sales of Flavors declined to $275.42 million from $278.24 million. The segment's overall growth was driven by new wins in North America, combined with stronger volumes, and new wins in Confectionary and Dairy in the EAME region. While underlying demand in the emerging markets remained strong, the loss of non-strategic business in Latin America and customer specific volume weakness in Greater Asia impacted results.

Operating profit at Flavors segment rose to $54.98 million from $51.57 million, reflecting higher pricing, margin and cost recovery efforts, combined with lower overhead expenses.

Fragrances generated $337.21 million in the just concluded quarter, a slight decline from last year's $339.30 million, with all categories, except Fine Fragrance, reporting growth. The segment's operating profit dropped to $46.22 million from $54.86 million in the previous year due to an $11 million restructuring charge related to the company's European facility rationalization plan.

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