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Sensient Reports Strong Third Quarter
Posted: October 21, 2011
Sensient Technologies Corporation reported consolidated revenue of $363.8 million for the third quarter 2011, ending September 30, marking an increase of 6.7% over the $340.9 million reported in the third quarter of 2010 and a new third-quarter high. Foreign currency translation also increased both revenue and operating income by approximately 4% in the quarter. Additionally, the company reported diluted earnings per share of $0.64 for this quarter, an increase of 12.3% over the $0.57 earned last year, and the Flavors & Fragrances group each reached new third-quarter records for revenue and operating income.
Also, revenue for the nine months ended September 30 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 reported for last year's nine-month period.
"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. "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."
Specifically for Sensient’s 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, and 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.
Sensient also increased its guidance for 2011 diluted earnings per share, which is now expected to be between $2.38–$2.42. The company's previous guidance had been between $2.32–$2.37.