Sensient

Sensient Technologies Corporation Reports Results for the Third Quarter Ended September 30, 2012
Company Achieves Third Quarter Record EPS of 66 Cents
Cash Flows from Operations Increase 8.4% to $43.1 Million
MILWAUKEE--(BUSINESS WIRE)--Oct. 19, 2012-- Sensient Technologies Corporation (NYSE: SXT) reported
diluted earnings per share of 66 cents in the quarter, a third quarter record and anincrease of 3.1% over the
64 cents earned in last year’s third quarter. In local currency, third quarter earnings per share increased 7.8%
as the impact of foreign currency translation reduced reported earnings by three cents per share. Foreign
currency translation also significantly reduced revenue and operating income in the quarter. Revenue was
$369.4 million in the third quarter compared to$363.8 million in last year’s third quarter. Operating income
increased to $50.7 million from the $49.9 million reported in the comparable period last year. In local currency,
both revenue and operating income increased by more than 5% in the quarter.
Diluted earnings per share were $1.94 for the first nine months of 2012, an increase of 5.4% over the $1.84
reported in last year’s first ninemonths. Foreign currency translation reduced year to date earnings by seven
cents per share. In local currency, revenue increased 4.5% and diluted earnings per share increased 9.2% in
the first nine months of this year.
Cash flows from operations increased to $43.1 million in the third quarter, up 8.4% from the $39.7 million
generated in last year’s third quarter. Debt was reduced by over $13million in the third quarter.
“Sensient delivered another strong performance in the third quarter despite the difficult economic conditions,”
said Kenneth P. Manning, Chairman and CEO of Sensient Technologies Corporation. “We continue to see
opportunities for growth in all of our Groups and I remain very optimistic about the Company’s future.”
BUSINESS REVIEW
The Color Group reported revenueof $120.7 million in the third quarter, compared to $121.0 million reported in
the comparable period last year. Operating income increased 2.5% to a third quarter record of $23.5 million,
from $22.9 million in last year’s third quarter. In local currency, revenue and operating income increased 5.0%
and 7.9%, respectively. The Color Group’s focus on higher value products resulted in strongeroperating
margins. The operating margin in the quarter increased to 19.4%, up from 18.9% reported in last year’s third
quarter.
The Flavors & Fragrances Group reported third quarter revenue of $224.7 million compared to $220.3 million in
last year’s third quarter. Operating income was $31.8 million in the quarter compared to $33.1 million in the
third quarter of 2011. Foreign currency translationreduced revenue by 3.4% and operating income by 1.4% in
the quarter. Third quarter results were affected by customer inventory destocking and higher raw material
costs.
The Corporate & Other segment, which includes the Company’s operations in Asia Pacific and China, and the
flavor businesses in Central and South America, reported revenue of $40.8 million in the quarter, an increase of
8.4%over the $37.6 million reported in last year’s third quarter.
2012 OUTLOOK
Sensient has narrowed its guidance for 2012 diluted earnings per share, which is now expected to be between
$2.51 and $2.56.
CONFERENCE CALL
The company will host a conference call to discuss its 2012 third quarter financial results at 10:00 a.m. CDT on
Friday, October 19, 2012. To make a reservation for the conferencecall, 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 October 19, 2012, through midnight on October 26,
2012, by calling (404) 537-3406 and referring to conference identification number 36872451. A transcript of
the call will also be posted on the...