Monday, Sensient Technologies Corp. (SXT), a manufacturer of colors, flavors and fragrances, reported a rise in first-quarter earnings, which came in above Wall Street analysts' estimate, despite a decline in revenues. Further, the company reiterated its outlook for the full year 2009.
The Milwaukee, Wisconsin-based company reported a first quarter net income of $21.6 million or $0.45 per share, compared to $20.7 million or $0.43 per share in the year-ago period. On average, three analysts polled by Thomson Reuters expected the company to report earnings of $0.44 per share for the quarter. Analysts' estimates typically exclude special items.
Operating profit of the company's core Flavors & Fragrances Group increased 4% to $30.0 million from $28.8 million in the prior year, while operating income of Color Group declined to $13.7 million from $18.5 million.
Quarterly revenues declined 8% to $282.8 million from $307.4 million last year. However, on a local currency basis, first quarter revenue increased 1.4% from the prior-year first quarter.
The Flavors & Fragrances Group's revenue declined to $184.5 million in the quarter from $193.2 million a year earlier. Unfavorable foreign currency comparisons reduced Flavors & Fragrances Group revenue by about 9% from last year. On a local currency basis, quarterly revenue was up 4.2% in the segment, with solid growth in all major markets.
The Color Group's revenue declined to $87.1 million from $102.8 million in the previous year. Unfavorable foreign currency comparisons reduced revenue by about 11% in the quarter. Local currency sales of food and beverage colors were up slightly in the quarter and sales of non-food colors were down. Operating results were significantly affected by temporary events including higher raw material costs and customer destocking, particularly within non-food product lines.
Looking forward to fiscal year 2009, the company said it continues to expect earnings in the range of $1.90 to $1.95 per share. Analysts expect the company to report earnings of $1.94 per share for the full year.
SXT closed regular trading at $24.60 on the NYSE last Friday.
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