Milwaukee-based Sensient Technologies Corp. reported second quarter net earnings of $29.1 million, or 59 cents per share, down from $32.3 million, or 65 cents per share, in the second quarter of 2013.
Revenue was $374.7 million, down from $378.8 million in the same period a year ago.
The flavorings, flavors and colors manufacturer put a restructuring plan into place at the beginning of 2013 to eliminate underperforming operations, consolidate manufacturing facilities and improve internal efficiencies. This resulted in $13 million of pre-tax restructuring and other costs in the second quarter.
Sensient’s board of directors also recently approved amending its articles of incorporation, by laws and corporate governance guidelines to include a majority voting standard in uncontested elections of directors. This replaces the company’s plurality voting standard and director resignation policy. Shareholders will vote on the amendments at the 2015 annual meeting.
“I am very pleased with the strong results reported by the company and each of the operating groups in the second quarter,” said Paul Manning, president and chief executive officer. ”Each of the Groups reported local currency operating profit growth of over five percent and significant margin improvement. We continue to see progress in the Flavors & Fragrances Group and we are optimistic about future opportunities across all of our businesses.”
The company avoided a board takeover attempt by Connecticut hedge fund FrontFour Capital Group LLC at its shareholder meeting in April.
Since FrontFour’s announcement of the intent to elect its own directors, the color, flavor and fragrance manufacturer has created a new independent lead director position, changed its long-term equity incentive compensation plan and announced the restructuring.