Member access

4-Traders Homepage  >  Shares  >  Nyse  >  Sensient Technologies Corporation    SXT   US81725T1007

SummaryQuotesChart AnalysisNewsCalendarCompanyFinancialsConsensusRevisions 

Sensient Technologies Corporation : Reports Results for the Third Quarter Ended September 30, 2011

10/20/2011 | 06:25pm US/Eastern
Recommend:
0

Sensient Technologies Corporation (NYSE: SXT) reported diluted earnings per share of 64 cents for the quarter ended September 30, 2011, a third-quarter record and an increase of 12.3% over the 57 cents earned in last year's third quarter, excluding a two cent benefit from an insurance recovery. The reported results in the third quarter of 2010 were 59 cents. Consolidated revenue reached a new third-quarter high of $363.8 million, an increase of 6.7% over the $340.9 million reported in the third quarter of 2010. Foreign currency translation increased both revenue and operating income by approximately 4% in the quarter. The Color Group and the Flavors & Fragrances Group each reported new third-quarter records for both revenue and operating income.

Revenue for the nine months ended September 30, 2011, was $1.1 billion, an increase of 10.3% over the $988.9 million reported in the first nine months of 2010. Diluted earnings per share increased 12.9% to $1.84 compared to $1.63, excluding the two cent benefit from the insurance recovery, reported for last year's nine month period. The reported earnings for the nine months ended September 30, 2010, were $1.65 per share. Foreign currency translation also increased both revenue and operating income by approximately 4% in the year-to-date period.

Cash provided by operating activities was $39.7 million in the third quarter and $106.6 million for the first nine months of 2011. Total debt at September 30, 2011, was $322.1 million compared to $360.3 million as of September 30, 2010.

"Our businesses performed very well this quarter, and I am pleased with the record results," said Kenneth P. Manning, Chairman, President, and CEO of Sensient Technologies Corporation. "We continue to see opportunities for growth and we have built the infrastructure that will allow us to convert these opportunities into new business. I am very optimistic about the Company's future."

BUSINESS REVIEW

The Color Group reported revenue of $121.0 million in the third quarter of 2011, an increase of 6.8% over the $113.3 million reported in last year's third quarter. Operating income increased 14.2% to $22.9 million from $20.0 million in the third quarter of 2010. Favorable foreign currency translation increased revenue by 4.2% and operating income by 4.7%. The strong demand for natural colors continues to drive the Group's revenue and profit growth.

The Flavors & Fragrances Group third quarter revenue increased 6.7% to $221.2 million, from $207.2 million in the third quarter of 2010. Operating income for the third quarter was $33.6 million, a 4.5% increase over the $32.2 million reported in last year's third quarter. Foreign currency translation increased revenue and operating income by approximately 3% and 2%, respectively. Strong performances by the U.S. flavor businesses drove the revenue and operating income growth.

Corporate & Other, which includes the Company's operations in Asia Pacific and China, reported revenue of $34.4 million for the third quarter, an increase of 11.2% over the $31.0 million reported in the third quarter of 2010.

2011 OUTLOOK

Sensient has increased its guidance for 2011 diluted earnings per share, which is now expected to be between $2.38 and $2.42. The Company's previous guidance had been between $2.32 and $2.37.

CONFERENCE CALL

The Company will host a conference call to discuss its 2011 third quarter financial results at 10:00 a.m. CDT on Friday, October 21, 2011. To make a reservation for the conference call, please contact InterCall Teleconferencing at (706) 645-6973 and refer to the Sensient Technologies Corporation conference call.

A replay will be available beginning at 1:00 p.m. CDT on October 21, 2011, through midnight on October 28, 2011, by calling (404) 537-3406 and referring to conference identification number 13272282. A transcript of the call will also be posted on the company's web site at www.sensient.com after the call concludes.

This release contains forward-looking statements (as that term is defined in the Private Securities Litigation Reform Act of 1995) that reflect management's current assumptions and estimates of future economic circumstances, industry conditions, Company performance and financial results. A variety of factors could cause the Company's actual results and experience to differ materially from the anticipated results, including, but not limited to the factors noted in this press release and in the Management's Discussion and Analysis in our most recently filed annual report on Form 10-K for the year ended December 31, 2010, and quarterly report on Form 10-Q for the quarter ended June 30, 2011. The forward-looking statements in this press release speak only as to the date of this release. Sensient Technologies Corporation expressly disclaims any obligation or undertaking to release publicly any updates or revisions to such statements to reflect any change in its expectations upon which such statements are based.

ABOUT SENSIENT TECHNOLOGIES

Sensient Technologies Corporation is a leading global manufacturer and marketer of colors, flavors and fragrances. Sensient employs advanced technologies at facilities around the world to develop specialty food and beverage systems, cosmetic and pharmaceutical systems, inkjet and specialty inks and colors, and other specialty and fine chemicals. The Company's customers include major international manufacturers representing most of the world's best-known brands. Sensient is headquartered in Milwaukee, Wisconsin.

www.sensient.com

           
Sensient Technologies Corporation
(In thousands, except percentages and per share amounts)
 
 
 
Consolidated Statements of Earnings Three Months Ended September 30, Nine Months Ended September 30,
 
2011 2010 % Change 2011 2010 % Change
 
Revenue $ 363,751 $ 340,868 6.7 % $ 1,090,431 $ 988,913 10.3 %
 
Cost of products sold 249,086 234,592 6.2 % 748,916 682,730 9.7 %
Selling and administrative expenses   64,722     58,516   10.6 %   193,642     172,622   12.2 %
 
Operating income 49,943 47,760 4.6 % 147,873 133,561 10.7 %
Interest expense   4,934     5,224     14,919     15,490  
 
Earnings before income taxes 45,009 42,536 5.8 % 132,954 118,071 12.6 %
Income taxes   13,012     13,319     41,056     36,702  
 
Net earnings $ 31,997   $ 29,217   9.5 % $ 91,898   $ 81,369   12.9 %
 
Earnings per common share:
Basic $ 0.64   $ 0.59   8.5 % $ 1.85   $ 1.66   11.4 %
 
Diluted $ 0.64   $ 0.59   8.5 % $ 1.84   $ 1.65   11.5 %
 
Average common shares outstanding:
Basic   49,776     49,277   1.0 %   49,723     49,051   1.4 %
 
Diluted   49,967     49,565   0.8 %   49,911     49,352   1.1 %
 
 
 
Impact of Third Quarter 2010 Insurance Recovery Related to the 2009 Environmental Settlement
 

The Company's third quarter 2010 results include income from the recovery of insurance reimbursements related to the 2009 environmental settlement. The following table provides a summary of the impact of the recovery on the Company's reported diluted earnings per common share.

 
Three Months Ended September 30, Nine Months Ended September 30,
 
2011 2010 % Change 2011 2010 % Change
 
Diluted earnings per common share as reported $ 0.64 $ 0.59 $ 1.84 $ 1.65
 
Insurance reimbursements   -     (0.02 )   -     (0.02 )
 
$ 0.64   $ 0.57   12.3 % $ 1.84   $ 1.63   12.9 %
 
 
 
Results by Segment Three Months Ended September 30, Nine Months Ended September 30,
 

Revenue

2011 2010 % Change 2011 2010 % Change
 
 
Flavors & Fragrances $ 221,182 $ 207,204 6.7 % $ 654,352 $ 602,953 8.5 %
Color 120,975 113,250 6.8 % 379,038 334,185 13.4 %
Corporate & Other 34,442 30,973 11.2 % 99,579 82,345 20.9 %
Intersegment elimination   (12,848 )   (10,559 ) 21.7 %   (42,538 )   (30,570 ) 39.1 %
 
Consolidated $ 363,751   $ 340,868   6.7 % $ 1,090,431   $ 988,913   10.3 %
 
 
 

Operating Income

 
 
Flavors & Fragrances $ 33,581 $ 32,150 4.5 % $ 98,685 $ 92,557 6.6 %
Color 22,891 20,036 14.2 % 69,886 59,024 18.4 %
Corporate & Other   (6,529 )   (4,426 ) 47.5 %   (20,698 )   (18,020 ) 14.9 %
 
Consolidated $ 49,943   $ 47,760   4.6 % $ 147,873   $ 133,561   10.7 %
 
 

 

 
 
 
Sensient Technologies Corporation
(In thousands, except per share amounts)
 
 
Consolidated Condensed Balance Sheets
September 30, 2011 2010
 
Current assets $ 697,625 $ 678,341
Goodwill and intangibles (net) 455,360 460,253
Property, plant and equipment (net) 437,998 418,834
Other assets   40,442     34,990  
 
Total Assets $ 1,631,425   $ 1,592,418  
 
Current liabilities $ 212,967 $ 213,072
Long-term debt 301,064 333,625
Accrued employee and retiree benefits 57,740 53,308
Other liabilities 26,758 27,054
Shareholders' equity   1,032,896     965,359  
 
Total Liabilities and Shareholders' Equity $ 1,631,425   $ 1,592,418  
 
 
 
Consolidated Statements of Cash Flows
Nine Months Ended September 30, 2011 2010
 
Net cash provided by operating activities $ 106,572   $ 110,545  
 
Cash flows from investing activities:
Acquisition of property, plant and equipment (44,125 ) (33,024 )
Proceeds from sale of assets 3 88
Other investing activities   (207 )   408  
 
Net cash used in investing activities   (44,329 )   (32,528 )
 
Cash flows from financing activities:
Proceeds from additional borrowings 49,407 128,671
Debt payments (78,169 ) (190,574 )
Dividends paid (31,451 ) (29,072 )
Proceeds from options exercised and other   3,006     13,414  
 
Net cash used in financing activities   (57,207 )   (77,561 )
 
Effect of exchange rate changes on cash and cash equivalents   (5,807 )   (269 )
 
Net (decrease) increase in cash and cash equivalents (771 ) 187
Cash and cash equivalents at beginning of period   14,255     12,219  
Cash and cash equivalents at end of period $ 13,484   $ 12,406  
 
 
 
Supplemental Information
Nine Months Ended September 30, 2011 2010
 
Depreciation and amortization $ 34,983 $ 32,774
 
Dividends per share $ 0.63 $ 0.59

Sensient Technologies Corporation
Dick Hobbs
(414) 347-3836


© Business Wire 2011
Recommend :
0
React to this article
Latest news on SENSIENT TECHNOLOGIES CORP
15h ago SENSIENT TECHNOLOGIES : Flavors unveils breakthrough in natural masking tech
09/09 SENSIENT TECHNOLOGIES : TraceGains and Penny Marsh at Sensient to Present at Nex..
09/04 SENSIENT TECHNOLOGIES : TraceGains and Sensient Present at Next Level Food Evolu..
08/21 SENSIENT TECHNOLOGIES : Change in Directors or Principal Officers, Amendments to..
08/21 SENSIENT TECHNOLOGIES : Announces Board of Director Appointments
08/06 SENSIENT TECHNOLOGIES CORPORATION : ex-dividend day
08/04 SENSIENT TECHNOLOGIES : Other Events, Financial Statements and Exhibits (form 8-..
08/04 SENSIENT TECHNOLOGIES : Announces CFO Transition
07/29 SENSIENT TECHNOLOGIES : Amendments to Articles of Inc. or Bylaws; Change in Fisc..
07/25 SENSIENT TECHNOLOGIES : Declares Dividend
Advertisement
Chart
Duration : Period :
Sensient Technologies Corp Technical Analysis Chart | SXT | US81725T1007 | 4-Traders
Income Statement Evolution
Sensient Technologies Corp : Income Statement Evolution
More Financials
Dynamic quotes  
ON
| OFF