Last updated on July 3rd, 2019 at 07:24 pm
Milwaukee-based Sensient Technologies Corp. reported an increase in sales during its second quarter of fiscal 2016, but overall net income fell as restructuring and other corporate costs offset gains in the rest of the business.
The company, which makes and markets colors, flavors and fragrances, reported net income of$28.1 million, a 4.5 percent drop from last year. Earnings from continuing operations were 55 cents per diluted share, down from 64 cents last year.
Sensient reported adjusted earnings of 84 cents per share, up from 80 cents last year. Restructuring and other costs accounted for a 29 cent adjustment this year, compared to 17 cents last year.
Revenue for the quarter came in at $360.8 million, up 4.3 percent from last year.
“Sensient had a strong quarter, with solid profit growth at each of our operating segments,” said Paul Manning, Sensient chairman, president and chief executive officer. “The Color Group was led by strong performances from the Cosmetics and Food Colors businesses, and many of the businesses in the Flavors & Fragrances Group delivered solid results in the quarter. We are on track to meet our profit growth expectations in 2016.”
The flavors and fragrances segment increased revenue 2.3 percent to $209.3 million, while segment operating income was $35.3 million, an 8.6 percent jump. The company highlighted fragrences, North America savory flavors and beverage in North America and Europe as strong performers.
The color business saw revenue increase 8 percent to $131.6 million, with income up 9.7 percent to $28 million. The cosmetics business reported double-digit growth on both revenue and income, while the food color business was also up.
The Asia Pacific segment revenue was up 7 percent to $31.8 million with income up slightly to $6.1 million. Foreign currency exchange reduced revenue by 3.1 percent and income by 3.6 percent.
Restructuring costs, part of a plan started in 2014, were down to $3.3 million after coming in at $9.6 million last year. Selling and administrative costs were up at almost $10.3 million, compared to $855,000 last year.