International Flavors & Fragrances Inc.’s third-quarter profits surpassed analysts’ expectations despite the settlement of a dispute with Spanish authorities that raised its effective tax rate and cut sharply into the bottom line.
In the three months ended Sept. 30, the New York-based firm reported net income of $16.4 million, or 20 cents a diluted share, down 80.1 percent from $82.2 million, or $1, in the year-ago quarter. On an adjusted basis, omitting special items including the settlement, adjusted earnings per share were $1.08, 4 cents above the consensus estimate of $1.04. The $72.4 million tax settlement elevated the company’s effective tax rate to 86.6 percent of pretax income, up from 26.9 percent in the 2011 period.
Hermès is launching a Laundromat pop-up shop in NYC - dubbed Hermèsmatic - where customers can bring their old scarves to be dip-dyed by an expert. Get all the details on WWD.com. #wwdnews (📷: @donstahl)