Pre-tax Earnings Up 24.4% Earnings per Share Increase 16.2% MILWAUKEE–(BUSINESS WIRE)–April 21, 2008–Sensient Technologies Corporation (NYSE: SXT) reported that diluted earnings per share for the first quarter of 2008 rose 16.2% to 43 cents, compared to 37 cents in the prior year’s comparable period. Revenue reached a record level of $307.4 million, up 7.8% from the first quarter of 2007. Foreign currency translation had a favorable impact on revenue of 6% in the quarter. First quarter 2008 operating income increased 15.8% on higher sales and improved margins. Cash provided by operating activities in the first quarter rose to $9.7 million, compared to $5.1 million in the prior year’s comparable period. “For the first quarter, we reported record revenue and our ninth consecutive quarter of strong earnings growth,” said Kenneth P. Manning, Chairman and CEO of Sensient Technologies Corporation. “We see favorable pricing and growth in several key product lines, and we expect our strong performance to continue throughout the year.” BUSINESS REVIEW The Flavors & Fragrances Group reported record first quarter revenue and operating income. Revenue for the quarter increased 8.1% to $195.2 million, compared to $180.5 million in last year’s comparable period. Quarterly operating income was up 13.2% to $28.8 million, compared to $25.4 million in the first quarter of 2007. Group revenue in the quarter benefited from favorable foreign currency translation and improved pricing. Quarterly operating income rose on the higher sales and on continued improvements in the profitability of the group’s European operations. Group operating margins improved 70 basis points to 14.8%. The Color Group’s first quarter revenue reached an all-time record level of $102.8 million, an increase of 6.8%, compared to $96.2 million in last year’s comparable period. Operating income for the quarter was up 8.1% to $18.5 million, compared to $17.1 million reported in the first quarter of 2007. Color Group revenue in the quarter reflects favorable foreign currency translation and improved pricing. Quarterly operating income rose as a result of the higher sales and improved product mix. Group operating margins improved 20 basis points to 18.0%. 2008 OUTLOOK Sensient has increased its 2008 diluted earnings per share guidance to be within a range of $1.77 to $1.80. The previous range for guidance had been between $1.74 and $1.78. CONFERENCE CALL The company will host a conference call to discuss its 2008 first quarter financial results at 10:00 a.m. CDT on Monday, April 21, 2008. To make a reservation for the conference call, please contact InterCall Teleconferencing at (706) 645-6973 and refer to the Sensient Technologies Corporation conference call. A replay will be available beginning at 1:00 p.m. CDT on April 21, 2008, through midnight on April 28, 2008, by calling (706) 645-9291 and referring to conference identification number 42992654. A transcript of the call will also be posted on the company’s web site at www.sensient-tech.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 Risk Factors and Management’s Discussion and Analysis sections in our most recently filed annual report on Form 10-K for the year ended December 31, 2007. 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 chemicals. The company’s customers include major international manufacturers representing some of the world’s best-known brands. Sensient is headquartered in Milwaukee, Wisconsin. www.sensient-tech.com
Sensient Technologies Corporation
(In thousands, except percentages and per share amounts)
Consolidated Statements of Earnings Three Months Ended March 31,
———————————–
2008 2007 % Change
———– ———– ———–
Revenue $307,419 $285,268 7.8%
Cost of products sold 211,777 199,120 6.4%
Selling and administrative
expenses 56,009 51,936 7.8%
———– ———–
Operating income 39,633 34,212 15.8%
Interest expense 8,578 9,252
———– ———–
Earnings before income taxes 31,055 24,960 24.4%
Income taxes 10,378 7,614
———– ———–
Net earnings $20,677 $17,346 19.2%
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Earnings per common share:
Basic $0.44 $0.37 18.9%
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Diluted $0.43 $0.37 16.2%
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Average common shares outstanding:
Basic 47,299 46,402 1.9%
=========== ===========
Diluted 47,806 46,909 1.9%
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Results by Segment Three Months Ended March 31,
———————————–
2008 2007 % Change
———– ———– ———–
Revenue
——-
Flavors & Fragrances $195,203 $180,513 8.1%
Color 102,771 96,192 6.8%
Corporate & Other (a) 18,591 16,144 15.2%
Intersegment elimination (9,146) (7,581) 20.6%
———– ———–
Consolidated $307,419 $285,268 7.8%
=========== ===========
Operating Income
———————————-
Flavors & Fragrances $28,795 $25,437 13.2%
Color 18,505 17,113 8.1%
Corporate & Other (a) (7,667) (8,338) -8.0%
———– ———–
Consolidated $39,633 $34,212 15.8%
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(a) Corporate & Other contains the Company’s Asia Pacific and China
operations as well as certain unallocated corporate expenses. Prior
to the first quarter of 2008, the results of the Company’s business
in China were reported as part of the Flavors & Fragrances Group.
Results for 2007 have been restated to reflect this change.
Sensient Technologies Corporation
(In thousands, except per share amounts)
Consolidated Condensed Balance Sheets
March 31, 2008 2007
———– ———–
Current assets $649,502 $568,516
Goodwill and intangibles (net) 508,466 464,649
Property, plant and equipment
(net) 430,138 387,419
Other assets 45,186 47,924
———– ———–
Total Assets $1,633,292 $1,468,508
=========== ===========
Current liabilities $239,858 $251,698
Long-term debt 459,255 437,012
Accrued employee and retiree
benefits 45,573 45,263
Other liabilities 28,131 16,921
Shareholders’ equity 860,475 717,614
———– ———–
Total Liabilities and
Shareholders’ Equity $1,633,292 $1,468,508
=========== ===========
Consolidated Statements of Cash Flows
Three Months Ended March 31, 2008 2007
———– ———–
Net cash provided by operating
activities $9,734 $5,095
———– ———–
Cash flows from investing
activities:
Acquisition of property,
plant and equipment (12,113) (6,827)
Proceeds from sale of
assets 23 1,418
Other investing activity 1,462 252
———– ———–
Net cash used in investing
activities (10,628) (5,157)
———– ———–
Cash flows from financing
activities:
Proceeds from additional
borrowings 9,052 24,679
Debt payments (3,071) (19,744)
Dividends paid (8,587) (7,481)
Proceeds from options
exercised and other 5,478 2,514
———– ———–
Net cash provided by (used in)
financing activities 2,872 (32)
———– ———–
Effect of exchange rate changes on
cash and cash equivalents 308 (14)
———– ———–
Net increase (decrease) in cash
and cash equivalents 2,286 (108)
Cash and cash equivalents at
beginning of period 10,522 5,035
———– ———–
Cash and cash equivalents at end
of period $12,808 $4,927
=========== ===========
Supplemental Information
Three Months Ended March 31, 2008 2007
———– ———–
Depreciation and amortization $11,483 $11,201
Dividends per share $0.18 $0.16
CONTACT: Sensient Technologies Corporation
Dick Hobbs
