Sensient Technologies Corporation has released its Q2 2020 results, along with an updated 2020 outlook, and the company reported diluted earnings per share of $0.72 compared to $0.81 in Q2 2019.
Revenue dropped from $323.1 million in this year’s second quarter compared to $339.2 million in the comparable period last year. Operating income was $42.1 million in Q2 2020 compared to operating income of $47.4 million in last year’s second quarter. Foreign currency translation decreased revenue, operating income and earnings per share by approximately 3% in the quarter.
The Q2 2020 reported results include divestiture and other related costs, primarily non-cash impairment charges, which increased net earnings by $1 million ($0.02 per diluted share), and the results of operations of the product lines to be divested, which were not significant to net earnings or diluted earnings per share.
- Flavors & Fragrances: $183.6 million, up from $180.1 million in Q2 2019
- Revenue: up 1.9%
- Adjusted local currency revenue: up 5.7%
- Color: $121.3 million, down from $138.9 million in Q2 2019
- Revenue: down 14.5%
- Adjusted local currency revenue: up 5.1%
- Asia Pacific: 27.9 million, up from $29.0 million in Q2 2019
- Revenue: down 3.9%
- Adjusted local currency revenue: up 1.4%
Sensient Technologies will be hosting a conference call to discuss the Q2 2020 financial results Friday, July 17, 2020 at 8:30 a.m. CDT. To participate in the conference call, contact Chorus Call Inc. at (844) 492-3726 or (412) 317-1078, and ask to join the Sensient Technologies Corporation conference call.
Based upon current trends, the company’s current diluted earnings per share guidance for 2020 is $2.10 to $2.35. This guidance now includes $0.35-$0.40 per share of divestiture and other related costs and the results of the operations divested and to be divested. The company also reconfirms its previously issued guidance of $2.60 to $2.80 for adjusted diluted earnings per share, which excludes divestiture and other related costs, the results of the operations divested and to be divested, and foreign currency impacts.