“The Company performed exceptionally well in 2011,” said Kenneth P. Manning, Chairman, President and CEO of Sensient Technologies Corporation. “We achieved record revenue and earnings for the second consecutive year, made substantial investments in our operations, reduced debt and increased the dividend to shareholders. We continue to see opportunities for growth and I am optimistic about the Company’s future.”
The Color Group reported revenue of $112.8 million in the fourth quarter compared to $113.3 million in the fourth quarter of 2010. Operating income in the quarter increased 10.6% to $20.3 million over the $18.4 million reported last year. Foreign currency translation reduced revenue by 2% and operating income by 1% in the fourth quarter. The operating income growth was primarily driven by our North American operations and our continued focus on the natural color market. As a result of this strong performance, the fourth quarter operating margin increased 180 basis points over the comparable period in 2010.
Annual revenue for the Color Group reached a record $491.9 million in 2011, an increase of 9.9% over the $447.5 million in 2010. Operating income grew to $90.2 million in 2011, also a record level and up 16.6% from the $77.4 million reported in 2010. Foreign currency translation increased both revenue and operating income by approximately 3% for the year. The Color Group’s operating margin increased 100 basis points to 18.3% in 2011.The Flavors & Fragrances Group reported fourth quarter revenue of $206.3 million compared to the $206.1 million in the same quarter last year. Operating income for the quarter was $32.2 million, a 9.3% increase over the $29.4 million reported in the comparable period of 2010. Foreign currency translation reduced both revenue and operating income by approximately 1% in the quarter. The U.S. flavor businesses drove the solid operating profit growth.