Sensient Technologies Corporation Reports Earnings for the Quarter Ended June 30, 2008

MILWAUKEE--(BUSINESS WIRE)--Sensient Technologies Corporation (NYSE: SXT) posted record revenue of $332.8 million for its second quarter ended June 30, 2008, up 9.4% from the comparable period in 2007. Second quarter diluted earnings per share rose 17.8% to 53 cents from 45 cents in last year’s second quarter.

Revenue for the first six months of this year was $640.2 million, an 8.6% increase from the prior year’s comparable period. Diluted earnings per share for the six months ended June 30, 2008, were up 17.1% to 96 cents compared to 82 cents in last year’s first half. Favorable foreign currency translation increased revenues in both the quarter and year-to-date period by approximately 6%.

“We reported record second quarter revenue, operating income and earnings,” said Kenneth P. Manning, Chairman and CEO of Sensient Technologies Corporation. “The Company has achieved ten consecutive quarters of earnings growth and we expect this strong performance to continue in the second half and into next year.”

BUSINESS REVIEW

The Flavors & Fragrances Group reported record quarterly revenue and operating income. Second quarter 2008 revenue increased 7.8% to $214.4 million. Operating income was up 11.9% to $33.9 million compared to the second quarter of 2007. Year-to-date revenue increased 8.0% to $409.6 million and operating income jumped 12.5% to $62.7 million. Group revenue in the quarter benefited from improved pricing and favorable foreign currency translation. Several key markets, including Europe and Canada, experienced solid growth. Quarterly profit rose as a result of the higher sales and continued improvements in the profitability of the Group’s European operations. Higher profit from these sources was partially offset by increased raw material and energy costs. Group operating margins in the second quarter improved 50 basis points in comparison to the prior year.

The Color Group’s revenue increased 12.0% to a record $107.3 million for the quarter ended June 30, 2008, compared to $95.8 million in last year’s second quarter. Operating income for the quarter was $19.3 million, up 12.4% from $17.2 million reported in the second quarter of 2007. Year-to-date revenue increased 9.4% to $210.1 million and operating income was up 10.3% to $37.8 million. Quarterly revenue for the Color Group reflects strong growth within the cosmetic, pharmaceutical and technical color product lines and favorable foreign currency translation. Sales of food and beverage colors were also up. Second quarter operating profit increased on solid volume growth and improved pricing, partially offset by higher raw material costs.

2008 OUTLOOK

Sensient expects 2008 diluted earnings per share to be between $1.80 and $1.84. This guidance represents an increase over the previously provided range which was between $1.77 and $1.80.