International Flavors & Fragrances on Thursday posted a 56.1 percent decline in fourth-quarter profits, due in part to restructuring costs and a patent litigation settlement.
For the three months ended Dec. 31, net income was $24.4 million, or 30 cents a diluted share, compared with $55.6 million, or 68 cents, in the year-ago quarter. Sales gained 2.3 percent to $644.4 million from $629.9 million, which included an 8 percent gain in local currency in its flavors unit and a 3 percent decline in its fragrance division.
For the full year, IFF’s net income gained 1.3 percent to $266.9 million, or $3.26 a diluted share, compared with $263.6 million the prior year.
Sales gained 6.5 percent to $2.79 billion, compared with $2.62 billion the prior year.
Doug Tough, chairman and chief executive officer, said, “We continued to leverage our geographic reach to capture the growth potential of the emerging markets, to strengthen our innovation platform to deliver differentiating products, and to maximize our portfolio to improve the underperforming areas of our business.”