Balchem report positive 2004 results

17,02/05 Balchem Corporation has reported record net sales for the quarter ended December 31, 2004 of $18.0 million. This is an increase of 9.4%, as compared to $16.4 million for the comparable prior year period.  Net earnings for the fourth quarter were $2.0 million, an increase of $0.7 million, or 46.6% as compared with the same period last year.  This resulted in a diluted net earnings increase of 39.5% to $0.26 per share for the fourth quarter of 2004 versus $0.19 per share for the comparable quarter of the prior year.

In the fourth quarter of 2004, all three segments of the company reported improved sales and earnings versus the prior year comparable period.   Sales of the Encapsulated/Nutritional Products segment were $6.2 million in the period, an increase of 2.2% from the prior year comparable quarter, principally due to improvements in the domestic food market as well as sales in the most recent quarter of Nitroshure, which is being sold into the animal health industry.  Earnings from operations for the encap segment were $0.09 million in the current quarterly period as compared to a $0.67 million loss in the prior year comparable quarter which had included $0.4 million of re-organization charges.

Commenting on the outlook for 2005, Dino A. Rossi, President and CEO of Balchem, said “Having closed-out a record year in sales and earnings, we believe Balchem is positioned, financially and strategically, to capitalize on growth opportunities.  We expect modest double digit increases in sales and earnings from organic growth in the three segments.  We will seek to continue to improve our operating cost structure with improved volumes and enhanced technology, easing the pressure of higher energy and raw material costs.  We are cautiously optimistic that we will identify one or more new strategic alliance and/or acquisition opportunities that will compliment the organic growth expectations.”