Sensient Technologies Corporation (NYSE: SXT) reported record revenue, operating income and earnings per share in 2011. Consolidated revenue was over $1.43 billion, an increase of 7.7% over 2010 revenue of $1.33 billion. Diluted earnings per share for the year increased by 11.1%, to $2.41, from $2.17 reported in 2010. Consolidated operating income reached $190.8 million in 2011. Excluding the net impact of items discussed below, consolidated operating income was $192.1 million, an increase of 10.0% from the 2010 result of $174.6 million. Foreign currency translation increased revenue and operating income by approximately 2% and 3%, respectively for the year.
Consolidated revenue for the fourth quarter of 2011 reached $340.4 million, a new fourth quarter high, compared to $339.3 million reported in the same quarter last year. Diluted earnings per share for the quarter increased 9.6% to 57 cents, also a fourth quarter record and up from the 52 cents reported in the comparable period of 2010. Foreign currency translation decreased revenue by approximately 1% and operating income by approximately 2% in the quarter.
The results for both the quarter and full year included a pre-tax charge of approximately $4.8 million ($3.7 million after tax, or 7 cents per share) for a cost reduction plan. This plan was implemented in the fourth quarter to improve the efficiency and profitability of selected operations and primarily consisted of severance payments and related costs.
The fourth quarter results included a gain related to the Company’s acquisition of Les Colorants Wackherr do Brasil. Generally accepted accounting principles required that the Company’s previously held equity interest in Les Colorants Wackherr do Brasil be revalued upon obtaining control of the business. The revaluation resulted in a pre-tax gain of approximately $3.6 million ($3.6 million after tax, or 7 cents per share).
Cash provided by operating activities in 2011 was $142.9 million, compared to $155.7 million in 2010. Total debt as of December 31, 2011, was $335.4 million, a decrease of $14.4 million during 2011. The Company’s debt to total capital ratio improved to 24.2%, from 26.2% on December 31, 2010.