Sensient Technologies Corporation Reports Earnings for the Quarter Ended March 31, 2007
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Source: Sensient Technologies Corporation
24/04/2007
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Milwaukee, April 20, 2007 - Sensient Technologies Corporation reported that diluted earnings per share for its first quarter ended March 31, 2007, increased 8.8%, to 37 cents from 34 cents last year. First quarter 2007 revenue increased 8.5% to $285.3 million as a result of strong sales in each of the Company's operating segments. Foreign currency translation had a favorable impact of 3.1% on first quarter revenue.
"Our cosmetic and food and beverage product lines performed very well, resulting in record first quarter sales," said Kenneth P. Manning, Chairman, President and CEO of Sensient Technologies Corporation. "We are off to a good start and I expect continued growth in 2007."
BUSINESS REVIEW
The Flavors & Fragrances Group posted record first quarter revenue of $184.3 million, an increase of 8.1% over the prior year. Solid revenue growth was recorded in the United States, Latin America and China. First quarter operating income was up 14.3%, to $26.2 million on higher sales volume and favorable pricing.
For the quarter, Color Group revenue grew 7.7%, to $96.0 million compared to $89.2 million for the comparable period in 2006. Strong demand within the Company's cosmetic and food and beverage product lines contributed to record first quarter revenue. Operating income for the first quarter increased 8.8%, to $17.2 million on the higher sales volume.
2007 OUTLOOK
Sensient now expects reported 2007 diluted earnings per share to be between $1.54 and $1.56.
Sensient Technologies Corporation
(In thousands, except percentages and per share amounts)
Consolidated Statements of Earnings
Three Months Ended March 31,
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2007 2006 % Change
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Revenue $285,268 $262,924 8.5
Cost of products sold 199,120 183,485 8.5
Selling and administrative expenses 51,936 48,664 6.7
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Operating income 34,212 30,775 11.2
Interest expense 9,252 8,708
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Earnings before income taxes 24,960 22,067 13.1
Income taxes 7,614 6,449
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Net earnings $17,346 $15,618 11.1
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Earnings per common share:
Basic $0.37 $0.34 8.8
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Diluted $0.37 $0.34 8.8
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Average common shares outstanding:
Basic 46,402 45,805 1.3
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Diluted 46,909 45,972 2.0
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Results by Segment Three Months Ended March 31,
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Revenue 2007 2006 % Change
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Flavors & Fragrances $184,274 $170,514 8.1
Color 96,030 89,156 7.7
Corporate & Other 12,064 10,004 20.6
Intersegment elimination (7,100) (6,750) 5.2
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Consolidated $285,268 $262,924 8.5
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Operating Income
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Flavors & Fragrances $26,174 $22,893 14.3
Color 17,232 15,845 8.8
Corporate & Other (9,194) (7,963) 15.5
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Consolidated $34,212 $30,775 11.2
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Sensient Technologies Corporation
(In thousands, except percentages and per share amounts)
Consolidated Condensed Balance Sheets
March 31, 2007 2006
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Current assets $568,516 $517,970
Goodwill and intangibles (net) 464,649 437,778
Property, plant and equipment (net) 387,419 371,647
Other assets 47,924 60,754
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Total Assets $1,468,508 $1,388,149
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Current liabilities $251,698 $423,052
Long-term debt 437,012 280,726
Accrued employee and retiree benefits 45,263 43,038
Other liabilities 16,921 9,095
Shareholders' equity 717,614 632,238
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Total Liabilities and Shareholders'
Equity $1,468,508 $1,388,149
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Consolidated Statements of Cash Flows
Three Months Ended March 31, 2007 2006
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Net cash provided by operating activities $5,095 $20,782
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Cash flows from investing activities:
Acquisition of property, plant and
equipment (6,827) (4,383)
Proceeds from sale of assets 1,418 64
Decrease in other assets 252 512
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Net cash used in investing activities (5,157) (3,807)
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Cash flows from financing activities:
Proceeds from additional borrowings 24,679 22,624
Debt payments (19,744) (32,455)
Purchase of treasury stock - (4,563)
Dividends paid (7,481) (6,949)
Proceeds from options exercised and
other 2,514 -
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Net cash used in financing activities (32) (21,343)
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Effect of exchange rate changes on cash and
cash equivalents (14) 152
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Net decrease in cash and cash equivalents (108) (4,216)
Cash and cash equivalents at beginning of
period 5,035 7,068
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Cash and cash equivalents at end of period $4,927 $2,852
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Supplemental Information
Three Months Ended March 31, 2007 2006
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Depreciation and amortization $11,201 $10,973
Dividends per share $0.16 $0.15
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