IFF Reports Strong Fourth Quarter
On a comparable basis, excluding non-recurring items from both years, the 2007 Adjusted EPS of $2.66 represents a 15 percent improvement over the full year 2006 adjusted EPS of $2.32.
04/02/08 International Flavors & Fragrances Inc., a leading global creator of flavors and fragrances for consumer products, has announced results for the fourth quarter and full year 2007. Earnings per share (EPS) as reported were $.58 in the 2007 fourth quarter, versus $.53 in the prior year quarter. For the full year, earnings per share were $2.82, compared to $2.48 in 2006, an increase of 14 percent.
Sales totaled $2,277 million, up 9 percent from 2006; flavor and fragrance sales increased 12 percent and 6 percent, respectively. 2007 sales benefited from the generally weaker U.S. dollar and at comparable exchange rates would have increased 5 percent over the prior year.
"I am pleased with our 2007 financial performance, which reflects strong top line and EPS growth," said Robert M. Amen, Chairman and Chief Executive Officer. "We met or exceeded our financial goals and delivered our second consecutive year of increased earnings.
"Our full-year financial results demonstrate that our strategies are working. Specifically, we increased sales, grew market share and built a stronger organization. While we still have opportunities for improvement, our 2007 accomplishments provide a sound foundation for continued growth in sales and EPS in 2008 and beyond."
Excluding non-recurring items, fourth quarter adjusted EPS was $.53, up 18 percent over the comparable fourth quarter 2006 results. The 2007 fourth quarter reported EPS included a gain on the disposition of land of $.05; the 2006 reported EPS included restructuring charges of $.02, a gain on disposition of assets of $.06, and a one-time tax benefit of $.04 relating to years prior to 2006.
On a comparable basis, excluding non-recurring items from both years, the 2007 Adjusted EPS of $2.66 represents a 15 percent improvement over the full year 2006 adjusted EPS of $2.32. The full year 2007 reported EPS included a pension curtailment loss of $.04 resulting from the freezing of the Company's defined benefit pension plan for the majority of U.S. employees, gains on disposition of assets of $.09, and a one-time tax benefit of $.11 relating to years prior to 2007. The 2006 reported EPS included restructuring charges of $.02, gains on disposition of assets of $.11, an insurance recovery of $.03 related to a 2005 product contamination issue, and a one-time tax benefit of $.04 relating to prior years.
Sales were $553 million, up 8 percent from the prior year quarter; Flavor and Fragrance sales increased 16 percent and 2 percent, respectively. Sales for the 2007 quarter benefited from the generally weaker U.S. dollar; at comparable exchange rates, sales would have increased 2 percent in comparison to the 2006 quarter.
The significant increase in Flavor sales of 16 percent was driven primarily by new wins and increased volume in Europe and the emerging markets of Asia and Latin America. Flavor compound sales increased in each region in both local currency and dollars.
Total Fragrance sales were driven by a 4 percent increase in Ingredient sales and a 3 percent increase in functional, offset by a decline in fine fragrance of 2 percent. Ingredient sales were strongest in Asia as a result of a strong demand for compounds and production shifting to the region. Sales in Fine and Beauty Care weakened in the fourth quarter; most notably in North America and Europe.
