Milwaukee-based Sensient Technologies Corp. reported improved earnings during the second quarter despite a more than $22 million drop in revenue.
The manufacturer of colors, flavors and fragrances reported a 6.2 percent drop in revenue to $338.5 million during the quarter. The decline was led by the flavors and fragrances group, which was down $23.9 million to $185.6 million. The color group, meanwhile, was up by $700,000 to $132.9.
Despite the decline, Sensient reported net income of $30.8 million, a 9.5 percent increase over last year. Earnings were up from 63 to 69 cents per diluted share. The improvement came as the company reduced costs of goods sold and selling and administrative expenses by 7.3 percent each, outpacing the decline in revenue.
“The color group had another solid quarter, led by the cosmetics and North American food colors businesses,” said Paul Manning, Sensient chairman, president and chief executive officer. “The flavors & fragrances group has largely completed its restructuring activities and can now focus on new product development and other growth initiatives. I remain very optimistic about the company’s future.”
Despite the optimism, the company slightly lowered its expectations for earnings from continuing operations from a range of $2.54 to $2.64 to $2.56 to $2.61 per share, dropping the midpoint by half a cent after increasing expected restructuring costs.
The company did increase its guidance for adjusted earnings by 7.4 percent from a range of $3.35 to $3.45 to a $3.40 to $3.45 per share range.