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February 13, 2008 |
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SENSIENT TECH: Earns US$77.8 Million in Year Ended Dec. 31 Sensient Technologies Corporation reported US$18.2 million of net income for the three months ended Dec. 31, 2007, compared to net income of US$15.3 million for the same period in 2006. For the full year of 2007, the company earned US$77.8 million compared to net income of US$66.4 million in 2006. Revenue reached a record level of US$300.9 million for the fourth quarter, up 10.3% from the comparable period in 2006. Revenue for the twelve months ended Dec. 31, 2007, was US$1.2 billion, an increase of 7.8% over the prior year. Foreign currency translation had a favorable impact on revenue of 5% and 4%, respectively, for the fourth quarter and year. Cash provided by operating activities increased 33.7% in the fourth quarter to US$24.5 million, compared to US$18.4 million in the prior year's comparable period. For the year, cash provided by operating activities was US$105.2 million, an increase of 6.0% in comparison to US$99.2 million in the prior year. "This quarter marks our eighth consecutive quarter of strong earnings growth," said Kenneth P. Manning, Chairman and Chief Executive Officer of Sensient Technologies Corporation. "We had an outstanding year. Each of our operating groups contributed to the excellent results, and we expect our businesses to perform well in 2008." Business Review The Flavors & Fragrances Group reported record fourth quarter revenue and operating income. Revenue for the quarter increased 7.7% to US$199.4 million, compared to US$185.0 million in last year's comparable period. Fourth quarter operating income was up 11.3% to US$30.1 million, compared to US$27.0 million in the fourth quarter of 2006. Revenue for the twelve months ended Dec. 31, 2007, increased 6.9% to US$783.7 million, and operating income was up 12.3% to US$117.3 million. Group revenue for the quarter and twelve month period benefited from favorable foreign currency translation and from improved pricing and higher volumes. Operating income for both periods rose on the higher sales. Group operating margins in 2007 improved 80 basis points to 15.0%. The Color Group's fourth quarter revenue increased 14.7% to US$95.6 million, compared to US$83.4 million in last year's comparable period. Operating income for the quarter was up 20.3% to US$16.6 million, compared to US$13.8 million reported in the fourth quarter of 2006. Revenue for the twelve months ended Dec. 31, 2007, increased 7.9% to US$377.9 million and operating income was up 12.7% to US$67.0 million. Color Group revenue for the quarter and year reflects favorable foreign currency translation and solid volume growth in food and beverage colors. Volume growth in cosmetic colors was also strong. Group operating margins in 2007 improved 70 basis points to 17.7%. About Sensient Technologies Headquartered in Milwaukee, Wisconsin, Sensient Technologies Corp. -- http://www.sensient-tech.com/ -- manufactures and markets colors, flavors and fragrances. Sensient also employs technologies to develop specialty chemicals for inkjet inks, display imaging systems and other applications. The company's principal products include flavors, flavor enhancers and bionutrients; fragrances and aroma chemicals; dehydrated vegetables and other food ingredients; natural and synthetic food colors; cosmetic and pharmaceutical additives; inkjet inks, technical colors, and specialty dyes and pigments, and chemicals for laser printing and flat screen displays. In Europe, Sensient maintains operations facilities and/or sales offices in Belgium, Bosnia, Croatia, Cyprus, Czech Republic, Germany, United Kingdom, France, Estonia, United Kingdom, Macedonia, Poland, Romania, Serbia and Montenegro, Turkey, Ukraine, and Wales. In Latin America, it has operations in Argentina, Bolivia, Brazil, Colombia, Costa Rica, Chile, Mexico, Peru, Uruguay and Venezuela. * * * As reported in the Troubled Company Reporter-Latin America on July 23, 2007, Standard & Poor's Ratings Services has revised its outlook on Milwaukee, Wis.-based Sensient Technologies Corp. to stable from negative. At the same time, Standard & Poor's affirmed its 'BB+' corporate credit and senior unsecured debt ratings on the company. Approximately US$508 million of debt was outstanding as of June 30, 2007. |
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