Milwaukee-based Sensient Technology Corp. reported a 9.6 percent drop in net income during the third quarter, even as revenues increased by 1.1 percent over the previous year.
The maker of colors, flavors and fragrances reported net income of $32.2 million, down from $35.6 million last year. Earnings fell from 79 to 73 cents per diluted share.
The drop came as revenue increased from $349.7 million to $353.5 million. The colors segment saw revenue increase 6 percent and the Asia segment was up 2 percent. Flavors and fragrances was down by 2 percent.
Sensient reported $6.7 million in restructuring costs related to the elimination of underperforming operations, consolidating manufacturing facilities and improving efficiencies. Adjusted net income was up 4.6 percent from $37.2 million to $38.9 million after removing the restructuring costs.
“Sensient had another solid quarter with good performances in both the color group and flavors and fragrances group,” said Paul Manning, Sensient chairman, president and chief executive officer. “The color group delivered a very good result driven by strong demand for cosmetics, while several businesses contributed to a solid performance by the flavors and fragrances group. I remain very optimistic about the company’s future.”
The company updated its guidance for the year, projecting earnings to be between $2.47 and $2.52 per share with 93 cents of restructuring costs. The previous guidance called for a range of $2.56 to $2.61 with 84 cents of restructuring costs.
