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Sensient Technologies Corporation Reports Results For The Second Quarter Ended June 30, 2012

A replay will be available beginning at 1:00 p.m. CDT on July 20, 2012, through midnight on July 27, 2012, by calling (404) 537-3406 and referring to conference identification number 98156044. A transcript of the call will also be posted on the company’s web site at www.sensient.com after the call concludes.

This release contains forward-looking statements (as that term is defined in the Private Securities Litigation Reform Act of 1995) that reflect management’s current assumptions and estimates of future economic circumstances, industry conditions, company performance and financial results. A variety of factors could cause the Company’s actual results and experience to differ materially from the anticipated results, including, but not limited to the factors noted in this press release and in the Management’s Discussion and Analysis in our most recently filed annual report on Form 10-K for the year ended December 31, 2011, and quarterly report on Form 10-Q for the quarter ended March 31, 2012. The forward-looking statements in this press release speak only as to the date of this release. Sensient Technologies Corporation expressly disclaims any obligation or undertaking to release publicly any updates or revisions to such statements to reflect any change in its expectations upon which such statements are based.

ABOUT SENSIENT TECHNOLOGIES

Sensient Technologies Corporation is a leading global manufacturer and marketer of colors, flavors and fragrances. Sensient employs advanced technologies at facilities around the world to develop specialty food and beverage systems, cosmetic and pharmaceutical systems, inkjet and specialty inks and colors, and other specialty and fine chemicals. The Company’s customers include major international manufacturers representing most of the world’s best-known brands. Sensient is headquartered in Milwaukee, Wisconsin.

www.sensient.com

Sensient Technologies Corporation
(In thousands, except percentages and per share amounts)
           
 
 
Consolidated Statements of Earnings Three Months Ended June 30, Six Months Ended June 30,
 
  2012     2011   % Change     2012     2011   % Change  
 
Revenue $ 367,777 $ 376,994 -2.4 % $ 733,437 $ 726,680 0.9 %
 
Cost of products sold 247,822 257,851 -3.9 % 498,150 499,830 -0.3 %
Selling and administrative expenses   65,657     64,810   1.3 %   134,500     128,920   4.3 %
 
Operating income 54,298 54,333 -0.1 % 100,787 97,930 2.9 %
Interest expense   4,347     5,135     8,753     9,985  
 
Earnings before income taxes 49,951 49,198 1.5 % 92,034 87,945 4.6 %
Income taxes   15,046     15,712     28,223     28,044  
 
Net earnings $ 34,905   $ 33,486   4.2 % $ 63,811   $ 59,901   6.5 %
 
Earnings per common share:
Basic $ 0.70   $ 0.67   4.5 % $ 1.29   $ 1.21   6.6 %
 
Diluted $ 0.70   $ 0.67   4.5 % $ 1.28   $ 1.20   6.7 %
 
Average common shares outstanding:
Basic   49,537     49,753   -0.4 %   49,656     49,696   -0.1 %
 
Diluted   49,771     49,947   -0.4 %   49,884     49,883   0.0 %
 
 
 
 
Results by Segment Three Months Ended June 30, Six Months Ended June 30,
 

Revenue

  2012     2011   % Change     2012     2011   % Change  
 
 
Flavors & Fragrances $ 218,918 $ 225,823 -3.1 % $ 433,649 $ 431,797 0.4 %
Color 127,919 132,392 -3.4 % 259,191 258,063 0.4 %
Corporate & Other* 38,477 36,277 6.1 % 75,653 70,872 6.7 %
Intersegment elimination   (17,537 )   (17,498 ) 0.2 %   (35,056 )   (34,052 ) 2.9 %
 
Consolidated $ 367,777   $ 376,994   -2.4 % $ 733,437   $ 726,680   0.9 %
 
 
 

Operating Income

 
 
Flavors & Fragrances $ 33,459 $ 35,875 -6.7 % $ 62,524 $ 64,485 -3.0 %
Color 25,949 24,648 5.3 % 51,471 46,995 9.5 %
Corporate & Other*   (5,110 )   (6,190 ) -17.4 %   (13,208 )   (13,550 ) -2.5 %
 
Consolidated $ 54,298   $ 54,333   -0.1 % $ 100,787   $ 97,930   2.9 %
 
 

* Beginning in the first quarter of 2012, the results of operations for the Company's flavors business in Central and South America, previously reported in the Flavors & Fragrances Group, are reported in the Corporate & Other segment. Results for 2011 have been restated to reflect this change.

 
Sensient Technologies Corporation
(In thousands, except per share amounts)
   
 
Consolidated Condensed Balance Sheets
June 30,   2012     2011  
 
Current assets $ 721,690 $ 707,296
Goodwill and intangibles (net) 452,556 479,604
Property, plant and equipment (net) 472,028 450,539
Other assets   37,783     38,657  
 
Total Assets $ 1,684,057   $ 1,676,096  
 
Current liabilities $ 186,259 $ 197,648
Long-term debt 340,048 309,177
Accrued employee and retiree benefits 54,924 56,682
Other liabilities 31,756 37,919
Shareholders' equity   1,071,070     1,074,670  
 
Total Liabilities and Shareholders' Equity $ 1,684,057   $ 1,676,096  
 
 
 
Consolidated Statements of Cash Flows
Three Months Ended June 30,   2012     2011  
 
Net cash provided by operating activities $ 40,139   $ 38,422  
 
Cash flows from investing activities:
Acquisition of property, plant and equipment (30,908 ) (13,634 )
Proceeds from sale of assets 1,289 2
Other investing activity   (30 )   (95 )
 
Net cash used in investing activities   (29,649 )   (13,727 )
 
Cash flows from financing activities:
Proceeds from additional borrowings 16,241 31,404
Debt payments (11,822 ) (48,747 )
Purchase of treasury stock (1,744 ) -
Dividends paid (10,987 ) (10,514 )
Proceeds from options exercised and other   601     1,435  
 
Net cash used in financing activities   (7,711 )   (26,422 )
 
Effect of exchange rate changes on cash and cash equivalents   (4,073 )   2,004  
 
Net (decrease) increase in cash and cash equivalents (1,294 ) 277
Cash and cash equivalents at beginning of period   13,349     14,020  
Cash and cash equivalents at end of period $ 12,055   $ 14,297  
 
 
 
Supplemental Information
Three Months Ended June 30,   2012     2011  
 
Depreciation and amortization $ 12,416 $ 11,886
 
Dividends per share $ 0.22 $ 0.21




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