8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

July 18, 2005
(Date of Report/Date of earliest event reported)

SENSIENT TECHNOLOGIES CORPORATION

(Exact name of registrant as specified in its charter)

WISCONSIN	1-7626	39-0561070
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

777 East Wisconsin Avenue
Milwaukee, Wisconsin 53202-5304
(Address and zip code of principal executive offices)

(414) 271-6755
(Registrant’s telephone number, including area code)

N/A
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

TABLE OF CONTENTS

Press Release

ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

On July 18, 2005, Sensient Technologies Corporation issued a press release disclosing its results of operations for its second quarter and the six months ended June 30, 2005 and its financial condition at that date. The press release is furnished as Exhibit 99.1 to this Report on Form 8-K.

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS.

Exhibit 99.1: The following exhibit is furnished with this Report on Form 8-K: Sensient Technologies Corporation Earnings Press Release for the Quarter and Six Months Ended June 30, 2005

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SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	SENSIENT TECHNOLOGIES CORPORATION (Registrant)
	By:	/s/ John L. Hammond
		Name:	John L. Hammond
		Title:	Vice President, Secretary and General Counsel
Date: July 19, 2005

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EXHIBIT INDEX

Exhibit 99.1: The following exhibit is furnished with this Report on Form 8-K: Sensient Technologies Corporation Earnings Press Release for the Quarter and Six Months Ended June 30, 2005

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EX-99.1

EXHIBIT 99.1

Contact: Dick Hobbs
(414) 347-3836

Sensient Technologies Corporation
Reports Earnings for the Quarter Ended June 30, 2005

Strong Cash Flow Results in $39 Million of Additional Debt Reduction in Quarter

     MILWAUKEE—July 18, 2005—Sensient Technologies Corporation (NYSE: SXT) reported diluted earnings per share of 34 cents for its second quarter ended June 30, 2005. Diluted earnings per share were 39 cents in the comparable quarter in 2004. Second quarter revenue of $263.8 million equaled the prior year’s second quarter. Improvements in North American food and beverage markets for both colors and flavors were offset by significantly higher raw material and energy costs.

     Diluted earnings per share for the six months ended June 30, 2005, were 61 cents compared to 71 cents in last year’s first half. Revenue for the first six months of this year was $514.6 million compared to $518.0 million in the prior year’s first half. Results for the first six months of 2005 include a previously disclosed one-time expense, recorded in the Corporate and Other segment, of approximately six cents per share related to an interim order in an arbitration with a customer. This interim order was finalized in the second quarter of 2005.

     For the quarter ended June 30, 2005, cash flow provided by operating activities increased 38.5%, to $38.9 million, in comparison to last year’s second quarter. Cash flow from operating activities for the six months ended June 30, 2005, was $59.2 million, an

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Sensient Technologies Corporation
Earnings Release — Second quarter ended June 30, 2005
July 18, 2005 Page 2

11.9% increase over last year’s first half. Total debt as of June 30, 2005, was $557.2 million, a reduction of $38.8 million in the quarter and $58.0 million since the beginning of the year.

     “Our focus on cash flow and debt reduction has produced significant progress in strengthening our balance sheet,” said Kenneth P. Manning, Chairman, President and CEO of Sensient Technologies Corporation. “In the second half of the year, we will have a marketing effort focused, not only on our core businesses, but also on new geographical markets where we’ve had success, such as China, Eastern Europe and Latin America. In addition, we expect to realize additional benefits from our cost reduction efforts that will offset higher costs.”

BUSINESS REVIEW

     Flavors & Fragrances Group revenue grew to $165.9 million in the quarter ended June 30, 2005, compared to $160.5 million in last year’s second quarter. Operating income was $21.8 million compared to $22.0 million in the second quarter of 2004. For the past six months, revenue and operating income were $319.5 million and $41.9 million, respectively. Group revenue in the quarter benefited from favorable foreign exchange rates and higher sales of traditional flavors in Canada and Latin America. Gains in these areas were impacted by lower sales of flavors in Europe and reduced revenue from aroma chemicals. Second quarter operating income was affected by an unfavorable product mix and higher costs.

     Color Group revenue was $89.1 million in the quarter ended June 30, 2005, compared to $95.5 million in last year’s second quarter. Operating income was $14.7 million compared to $17.7 million in the second quarter of 2004. For the past six months, revenue and operating income were $179.2 million and $29.5 million, respectively. Quarterly results for the Color Group reflect a highly competitive market for technical colors. This quarter showed significant improvement in the core business of food and beverage colors.

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Sensient Technologies Corporation
Earnings Release — Second quarter ended June 30, 2005
July 18, 2005 Page 3

2005 OUTLOOK

     Sensient expects reported 2005 diluted earnings per share to be between $1.37 and $1.40.

CONFERENCE CALL

     The company will host a conference call to discuss its 2005 second quarter financial results at 10:00 a.m. CDT on Monday, July 18, 2005. To make a reservation for the conference call, 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 July 18, 2005, through midnight on July 25, 2005, by calling (706) 645-9291 and referring to passcode 7765860. A transcript of the call will also be posted on the company’s web site at www.sensient-tech.com after the call concludes.

     This release contains forward-looking statements (as that term is defined in the Private Securities Litigation Reform Act of 1995) that reflect management’s current assumptions and estimates of future economic circumstances, industry conditions, company performance and financial results. A variety of factors could cause the company’s actual results and experience to differ materially from the anticipated results, including, but not limited to the factors noted in this press release and in the Management’s Discussion and Analysis in our most recently filed annual report on Form 10-K for the year ended December 31, 2004, and quarterly report on Form 10-Q for the quarter ended March 31, 2005. The forward-looking statements in this press release speak only as to the date of this release. Sensient Technologies Corporation expressly disclaims any obligation or undertaking to release publicly any updates or revisions to such statements to reflect any change in its expectations upon which such statements are based.

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Sensient Technologies Corporation
Earnings Release — Second quarter ended June 30, 2005
July 18, 2005 Page 4

ABOUT SENSIENT TECHNOLOGIES

     Sensient Technologies Corporation is a leading global manufacturer and marketer of colors, flavors and fragrances. Sensient employs advanced technologies at facilities around the world to develop specialty food and beverage systems, cosmetic and pharmaceutical systems, inkjet and specialty inks, display imaging chemicals, and other specialty chemicals. The company’s customers include major international manufacturers representing some of the world’s best-known brands. Sensient is headquartered in Milwaukee, Wisconsin.

     www.sensient-tech.com

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Sensient Technologies Corporation
(In thousands, except percentages and per share amounts) Page 5

Consolidated Statements of Earnings

	Three Months Ended June 30,							Six Months Ended June 30,
	2005		2004		% Change			2005		2004		% Change
Revenue	$	263,750	$	263,830		(0.0	)	$	514,627	$	517,970		(0.6	)
Cost of products sold		184,320		183,433		0.5			360,617		363,208		(0.7	)
Selling and administrative expenses		48,824		46,373		5.3			98,526		92,155		6.9
Operating income		30,606		34,024		(10.0	)		55,484		62,607		(11.4	)
Interest expense		8,902		7,965					17,626		15,328
Earnings before income taxes		21,704		26,059		(16.7	)		37,858		47,279		(19.9	)
Income taxes		5,841		7,810					9,164		14,070
Net earnings	$	15,863	$	18,249		(13.1	)	$	28,694	$	33,209		(13.6	)
Earnings per common share:
Basic	$	0.34	$	0.39		(12.8	)	$	0.61	$	0.71		(14.1	)
Diluted	$	0.34	$	0.39		(12.8	)	$	0.61	$	0.71		(14.1	)
Average common shares outstanding:
Basic		46,855		46,510		0.7			46,795		46,493		0.6
Diluted		47,181		46,790		0.8			47,174		46,764		0.9

Results by Segment	Three Months Ended June 30,									Six Months Ended June 30,
Revenue	2005			2004			% Change			2005			2004			% Change
Flavors & Fragrances	$	165,918		$	160,516			3.4		$	319,494		$	312,080			2.4
Color		89,114			95,506			(6.7	)		179,174			189,647			(5.5	)
Corporate & Other		19,183			17,191			11.6			37,485			34,050			10.1
Intersegment elimination		(10,465	)		(9,383	)		11.5			(21,526	)		(17,807	)		20.9
Consolidated	$	263,750		$	263,830			(0.0	)	$	514,627		$	517,970			(0.6	)
Operating Income
Flavors & Fragrances	$	21,841		$	21,976			(0.6	)	$	41,946		$	39,788			5.4
Color		14,692			17,704			(17.0	)		29,456			33,353			(11.7	)
Corporate & Other		(5,927	)		(5,656	)		4.8			(15,918	)		(10,534	)		51.1
Consolidated	$	30,606		$	34,024			(10.0	)	$	55,484		$	62,607			(11.4	)

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Sensient Technologies Corporation
(In thousands, except percentages and per share amounts) Page 6

Consolidated Condensed Balance Sheets
June 30,	2005		2004
Current assets	$	510,399	$	543,361
Intangibles (net)		442,814		440,408
Property, plant and equipment (net)		386,205		382,994
Other assets		68,106		70,045
Total Assets	$	1,407,524	$	1,436,808
Current liabilities	$	211,380	$	265,016
Long-term debt		495,659		514,356
Accrued employee and retiree benefits		37,486		31,824
Other liabilities		14,821		33,263
Shareholders’ equity		648,178		592,349
Total Liabilities and Shareholders’ Equity	$	1,407,524	$	1,436,808

Consolidated Statements of Cash Flows
Six Months Ended June 30,	2005			2004
Net cash provided by operating activities	$	59,177		$	52,899
Cash flows from investing activities:
Acquisition of property, plant and equipment		(14,125	)		(20,688	)
Proceeds from sale of assets		—			1,092
Decrease in other assets		223			2,348
Net cash used in investing activities		(13,902	)		(17,248	)
Cash flows from financing activities:
Proceeds from additional borrowings		30,110			27,457
Debt and capital lease payments		(62,734	)		(48,215	)
Dividends paid		(14,150	)		(14,036	)
Proceeds from options exercised and other		3,555			647
Net cash used in financing activities		(43,219	)		(34,147	)
Effect of exchange rate changes on cash and cash equivalents		(623	)		(286	)
Net increase in cash and cash equivalents		1,433			1,218
Cash and cash equivalents at beginning of period		2,243			3,250
Cash and cash equivalents at end of period	$	3,676		$	4,468

Supplemental Information
Six Months Ended June 30,	2005		2004
Depreciation and amortization	$	23,879	$	23,922
Dividends per share	$	0.3000	$	0.3000

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