Balchem Corp Announces Flat Growth for 2011, Attributed to Disappointing Food & Pharma Results

The company reported that it achieved $9.5 million in revenue for the quarter ending Dec. 31, up slightly from $9.42 million in the same quarter of the prior year. Earnings per share were flat at 31 cents. Balchem's overall revenue remained effectively static from the previous year retracting to $69.7 million from $69.8 million.

Feb 28 2012 --- Balchem Corp.'s fourth-quarter net income was nearly flat, the company’s increased prices helped mask the shortfall. The results fell short of market analysts expectations and resulted in the company’s share price plunging in Monday trading.

The company reported that it achieved $9.5 million in revenue for the quarter ending Dec. 31, up slightly from $9.42 million in the same quarter of the prior year. Earnings per share were flat at 31 cents.

Balchem's overall revenue remained effectively static from the previous year retracting to $69.7 million from $69.8 million.

These quarterly results reflected particular strength in the company’s ARC Specialty Products segment, but also unexpected softness in the domestic food sector of Food, Pharma & Nutrition (“FPN”) and mixed results from Animal Nutrition & Health (“ANH”), with significant improvement coming from the ruminant production animal sector, flatness from the poultry markets, which was then offset by softness in the industrial products end market.

Analysts polled by FactSet had anticipated that the company’s revenue would be somewhere in the region of $78 million. As a result Balchem’s share price fell nearly 14% after the company’s announcement.

The company, based in New Hampton, N.Y., makes products for the food, nutritional, feed, pharmaceutical, and medical sterilization industries such as chemicals to sterilize medical devices or prevent packaged foods from spoiling.

The company’s ANH specialty ingredients, largely targeted to ruminant production animal markets, realized approximately 21% sales growth, principally from sales of Reashure, and our new Aminoshure products.

Dairy economics in the US and certain export markets remain strong, supporting greater demand for these products despite relatively high feed prices. Balchem’s global feed grade choline product sales were equal to the prior year comparable quarter as volumes sold in these markets were strongly influenced by the dynamics of our customer base, predominantly the poultry production industry.