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Sensient 1Q Earnings Rise 5 Percent

The Associated Press

MILWAUKEE (AP) — Sensient Technologies Corp., a specialty chemicals maker, reported Monday a 5-percent increase in first-quarter earnings, finishing slightly ahead of analyst expectations as its cost cutting efforts offset a decline in revenue.

The Milwaukee-based company reported earnings of $21.6 million, or 45 cents per share, compared with a profit of $20.7 million, or 43 cents per share, in last year's first quarter. Revenue fell 8 percent to $282.8 million, from $307.4 million.

Analysts polled by Thomson Reuters predicted earnings of 44 cents per share.

The company attributed the reduced revenue partly to the effect of the stronger U.S. dollar. On a local currency basis, first quarter revenue was up 1.4 percent compared with the previous year.

Meanwhile, the company's cost of products sold declined 7 percent to $196.3 million, and its Selling and administrative expenses fell 14 percent to $48.1 million.

Despite tough economic conditions, Chief Executive Kenneth Manning said it was the 13th straight quarter of increased earnings.

The company also said it still expects 2009 earnings in a range of $1.90 to $1.95 per share. Analysts expect earnings of $1.94 per share.

Shares lost $1.53, or 6.2 percent, to $23.05 in morning trading.

Sensient Technologies manufactures and markets colors, flavors and fragrances.