IFF REPORTS FLAT PROFITS FOR QUARTER
NEW YORK — International Flavors & Fragrances Inc. said weakening sales and a strong dollar led to flat second-quarter earnings, in line with Wall Street’s recently lowered expectations.
Including the one-time charges, net income for the quarter ended June 30 rose to $48.9 million, or 48 cents a share, up from $27.4 million, or 26 cents, a year earlier. But excluding one-time charges, earnings per share were flat at 48 cents, versus last year’s.
After a profit warning in June, analysts on average trimmed earnings expectations to 48 cents from 53 cents.
Net sales dipped 1 percent in the quarter, to $368.8 million from $371.07 million, hurt by the stronger U.S. dollar. In local currencies, sales were up 3 percent.
In June, IFF said sales were being hurt by the stronger dollar and weak conditions in the food business in North America and Europe. It also said fragrance sales in Europe and North America were hurt by customer delays in the launch of new products that contain IFF fragrances and fragrance ingredients, particularly in household and personal care; as well as by moves by many customers to reduce inventory .
Overall fragrance sales inched up 1 percent during the quarter, but would have been up 6 percent in local currencies. In the U.S., fragrance sales were up 3 percent. In Europe, Africa and the Middle East, fragrance sales slid 8 percent when converted to dollars, but increased 4 percent in local currencies. In the Asia-Pacific region, sales rose 9 percent on a reported basis and 7 percent in local currencies.