“Sensient delivered a solid performance in the second quarter,” said Kenneth P. Manning, Chairman, President and CEO of Sensient Technologies Corporation. “We achieved local currency revenue and operating income growth in difficult economic conditions. We continue to see opportunities for growth in all of our Groups, and I remain very optimistic about the Company’s future.”
The Color Group reported revenue of $127.9 million in the second quarter of 2012, compared to $132.4 million reported in the comparable period last year. Operating income increased 5.3% to an all-time quarterly high of $25.9 million, from $24.6 million in the second quarter of 2011. In local currency terms, revenue and operating income increased 2.5% and 11.2%, respectively. Color Group operating margins increased 170 basis points to 20.3% in the second quarter, due to an improved product mix focusing on higher value products. This is the first time since 2003 that the Color Group’s operating margin has exceeded 20%.
The Flavors & Fragrances Group reported second quarter revenue of $218.9 million, compared to the $225.8 million reported in the comparable period last year. Operating income was $33.5 million in the quarter, compared to $35.9 million reported in last year’s second quarter. Foreign currency translation reduced revenue by 4.3% and operating income by 3.0%.
The Corporate & Other segment, which includes the Company’s operations in Asia Pacific and China, and the flavor businesses in Central and South America, reported revenue of $38.5 million, an increase of 6.1% compared to $36.3 million reported in last year’s second quarter.
Sensient is maintaining its guidance for 2012 diluted earnings per share, which is expected to be between $2.50 and $2.59.
The company will host a conference call to discuss its 2012 second quarter financial results at 10:00 a.m. CDT on Friday, July 20, 2012. To make a reservation for the conference call, please contact InterCall Teleconferencing at (706) 645-6973 and refer to the Sensient Technologies Corporation conference call.