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Sensient Announces Q4 and Record Full Year 2008 Results
Posted: February 9, 2009
Sensient Technologies (Milwaukee; Indianapolis), has announced its fourth quarter and full-year 2008 results, reporting record revenue, operating income and earnings. The company’s revenue for the year increased by 5.7% over the prior year, to reach $1.3 billion, while its fourth quarter revenue rose 5.4% on local currency basis. Foreign currency translation reduced consolidated fourth quarter revenue by 7.8%.
Flavor & Fragrances
The flavors and fragrances group reported record revenues of $809.6 million in 2008, up 5.4% compared to 2007; meanwhile, its operating income rose 7.6% to $123.5 million, compared to $114.7 million in 2007. However, “the impact of unfavorable foreign currency translation on the group in the fourth quarter reduced both revenue and operating income by about 7%,” said Ken Manning, chairman and CEO of Sensient. The group’s fourth quarter revenue was $193.5 million off 1.2% from the prior year’s fourth quarter revenue of $195.8 million, and its operating income was $29.2 million, compared to $29.7 million in 2007, reporting a decrease of 1.8%. On a positive note, Manning confirmed that “the group … saw strong sales growth in the United States and Canada for dairy and flavors, as in savory flavors. The dehydrated flavor product line also continued to perform very well.”
Reiterating this optimism, Dick Hobbs, senior vice president and CFO of Sensient said, “Particularly if you look at the flavor business on our local currency basis, we are up nearly 6%. … [A]s we look ahead, and we look at some of the reports from our customers and from individuals who are selling into our markets, they expect a strong growth.”