Flavors & Fragrances Sales Boost Sensient Revenue Growth

18/07/06 Sensient Technologies Corp. reported revenue of $282.2 million for the second quarter ended June 30, 2006, up 7.0% from the comparable quarter in 2005. Second quarter diluted earnings per share jumped 17.6% to 40 cents from 34 cents in last year's second quarter.

"All our Groups show revenue growth and higher operating profits," said Kenneth P. Manning, chairman, president and CEO of Sensient Technologies Corporation. "The Flavors & Fragrances Group performed particularly well, reporting record quarterly revenues and operating income. We expect the Company's strong performance to continue in the second half and into next year."

The Flavors & Fragrances Group reported record quarterly revenues and operating income. Revenue increased 9.2% to $188.3 million for the 2006 second quarter. Operating income was up 19.0% to $27.1 million compared to the second quarter of 2005. Year-to-date revenue increased 8.4% to $358.8 million and operating income was up 15.4% to $50.0 million.

Group revenue in the quarter benefited from higher volumes and improved pricing, particularly within the North American flavors market. Higher sales, favorable product mix and improvements in the company's cost structure boosted quarterly profit.

The Color Group's second quarter revenue increased 1.6% to $90.5 million for the quarter ended June 30, 2006, compared to $89.1 million in last year's second quarter. Operating income for the quarter equaled $15.8 million, up 7.8% from $14.7 million reported in the second quarter of 2005. For the past six months, revenue and operating income were $179.7 million and $31.7 million, respectively. Quarterly revenues for the Color Group reflected solid growth within food and beverage color product lines. A lower cost structure also contributed to Color Group profits.