WISCONSIN
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1-7626
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39-0561070
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(State or other jurisdiction of incorporation)
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(Commission File Number)
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(IRS EmployerIdentification No.)
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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)) |
ITEM 2.02 | RESULTS OF OPERATIONS AND FINANCIAL CONDITION. |
ITEM 9.01 | FINANCIAL STATEMENTS AND EXHIBITS. |
Exhibit 99.1:
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Sensient Technologies Corporation Earnings Press Release for the Quarter and Six Months Ended June 30, 2013.
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SENSIENT TECHNOLOGIES CORPORATION
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(Registrant)
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By:
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/s/ John L. Hammond
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Name:
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John L. Hammond
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Title:
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Senior Vice President, General Counsel and Secretary
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Date:
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July 25, 2013
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Sensient Technologies Corporation Earnings Press Release for the Quarter and Six Months Ended June 30, 2013.
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Contact:
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Dick Hobbs
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Sensient Technologies Corporation
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Page 2
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Sensient Technologies Corporation
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Page 3
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Sensient Technologies Corporation
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Page 4
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Sensient Technologies Corporation
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Page 5
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(In thousands, except percentages and per share amounts)
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Consolidated Statements of Earnings
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Three Months Ended June 30,
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Six Months Ended June 30,
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||||||||||||||||||||||
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||||||||||||||||||||||||
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2013
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2012
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% Change
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2013
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2012
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% Change
|
||||||||||||||||||
|
||||||||||||||||||||||||
Revenue
|
$
|
378,806
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$
|
367,777
|
3.0
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%
|
$
|
744,446
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$
|
733,437
|
1.5
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%
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||||||||||||
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||||||||||||||||||||||||
Cost of products sold
|
256,285
|
247,822
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3.4
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%
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504,788
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498,150
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1.3
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%
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||||||||||||||||
Selling and administrative expenses
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73,843
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65,657
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12.5
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%
|
154,642
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134,500
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15.0
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%
|
||||||||||||||||
|
||||||||||||||||||||||||
Operating income
|
48,678
|
54,298
|
-10.4
|
%
|
85,016
|
100,787
|
-15.6
|
%
|
||||||||||||||||
Interest expense
|
4,008
|
4,347
|
8,269
|
8,753
|
||||||||||||||||||||
|
||||||||||||||||||||||||
Earnings before income taxes
|
44,670
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49,951
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-10.6
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%
|
76,747
|
92,034
|
-16.6
|
%
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||||||||||||||||
Income taxes
|
12,388
|
15,046
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23,026
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28,223
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||||||||||||||||||||
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||||||||||||||||||||||||
Net earnings
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$
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32,282
|
$
|
34,905
|
-7.5
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%
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$
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53,721
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$
|
63,811
|
-15.8
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%
|
||||||||||||
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||||||||||||||||||||||||
Earnings per common share:
|
||||||||||||||||||||||||
Basic
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$
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0.65
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$
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0.70
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-7.1
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%
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$
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1.08
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$
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1.29
|
-16.3
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%
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||||||||||||
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||||||||||||||||||||||||
Diluted
|
$
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0.65
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$
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0.70
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-7.1
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%
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$
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1.08
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$
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1.28
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-15.6
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%
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||||||||||||
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||||||||||||||||||||||||
Average common shares outstanding:
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||||||||||||||||||||||||
Basic
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49,751
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49,537
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0.4
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%
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49,731
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49,656
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0.2
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%
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||||||||||||||||
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||||||||||||||||||||||||
Diluted
|
49,917
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49,771
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0.3
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%
|
49,892
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49,884
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0.0
|
%
|
|
Three Months Ended June 30,
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|||||||||||||||||||
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||||||||||||||||||||
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Reported
|
Restructuring
|
Adjusted
|
Reported
|
||||||||||||||||
|
2013
|
Impact
|
2013
|
2012
|
% Change
|
|||||||||||||||
|
||||||||||||||||||||
Revenue
|
$
|
378,806
|
$
|
-
|
$
|
378,806
|
$
|
367,777
|
3.0
|
%
|
||||||||||
|
||||||||||||||||||||
Cost of products sold
|
256,285
|
277
|
256,008
|
247,822
|
3.3
|
%
|
||||||||||||||
Selling and administrative expenses
|
73,843
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6,365
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67,478
|
65,657
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2.8
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%
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||||||||||||||
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||||||||||||||||||||
Operating income
|
48,678
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(6,642
|
)
|
55,320
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54,298
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1.9
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%
|
|||||||||||||
Interest expense
|
4,008
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-
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4,008
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4,347
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||||||||||||||||
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||||||||||||||||||||
Earnings before income taxes
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44,670
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(6,642
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)
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51,312
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49,951
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2.7
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%
|
|||||||||||||
Income taxes
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12,388
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(1,940
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)
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14,328
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15,046
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|||||||||||||||
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||||||||||||||||||||
Net earnings
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$
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32,282
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$
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(4,702
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)
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$
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36,984
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$
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34,905
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6.0
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%
|
|||||||||
|
||||||||||||||||||||
Earnings per common share:
|
||||||||||||||||||||
Basic
|
$
|
0.65
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$
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(0.09
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)
|
$
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0.74
|
$
|
0.70
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5.7
|
%
|
|||||||||
|
||||||||||||||||||||
Diluted
|
$
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0.65
|
$
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(0.09
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)
|
$
|
0.74
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$
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0.70
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5.7
|
%
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|||||||||
|
||||||||||||||||||||
Average common shares outstanding:
|
||||||||||||||||||||
Basic
|
49,751
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49,751
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49,537
|
0.4
|
%
|
|||||||||||||||
|
||||||||||||||||||||
Diluted
|
49,917
|
49,917
|
49,771
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0.3
|
%
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Sensient Technologies Corporation
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Page 6
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(In thousands, except percentages and per share amounts)
|
|
|
Six Months Ended June 30,
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|||||||||||||||||||
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||||||||||||||||||||
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Reported
|
Restructuring
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Adjusted
|
Reported
|
||||||||||||||||
|
2013
|
Impact
|
2013
|
2012
|
% Change
|
|||||||||||||||
|
||||||||||||||||||||
Revenue
|
$
|
744,446
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$
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-
|
$
|
744,446
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$
|
733,437
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1.5
|
%
|
||||||||||
|
||||||||||||||||||||
Cost of products sold
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504,788
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872
|
503,916
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498,150
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1.2
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%
|
||||||||||||||
Selling and administrative expenses
|
154,642
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18,543
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136,099
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134,500
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1.2
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%
|
||||||||||||||
|
||||||||||||||||||||
Operating income
|
85,016
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(19,415
|
)
|
104,431
|
100,787
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3.6
|
%
|
|||||||||||||
Interest expense
|
8,269
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-
|
8,269
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8,753
|
||||||||||||||||
|
||||||||||||||||||||
Earnings before income taxes
|
76,747
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(19,415
|
)
|
96,162
|
92,034
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4.5
|
%
|
|||||||||||||
Income taxes
|
23,026
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(5,306
|
)
|
28,332
|
28,223
|
|||||||||||||||
|
||||||||||||||||||||
Net earnings
|
$
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53,721
|
$
|
(14,109
|
)
|
$
|
67,830
|
$
|
63,811
|
6.3
|
%
|
|||||||||
|
||||||||||||||||||||
Earnings per common share:
|
||||||||||||||||||||
Basic
|
$
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1.08
|
$
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(0.28
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)
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$
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1.36
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$
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1.29
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5.4
|
%
|
|||||||||
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||||||||||||||||||||
Diluted
|
$
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1.08
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$
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(0.28
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)
|
$
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1.36
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$
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1.28
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6.3
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%
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|||||||||
|
||||||||||||||||||||
Average common shares outstanding:
|
||||||||||||||||||||
Basic
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49,731
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49,731
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49,656
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0.2
|
%
|
|||||||||||||||
|
||||||||||||||||||||
Diluted
|
49,892
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49,892
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49,884
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0.0
|
%
|
Results by Segment
|
Three Months Ended June 30,
|
Six Months Ended June 30,
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||||||||||||||||||||||
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||||||||||||||||||||||||
Revenue
|
2013
|
2012
|
% Change
|
2013
|
2012
|
% Change
|
||||||||||||||||||
|
||||||||||||||||||||||||
Flavors & Fragrances
|
$
|
227,918
|
$
|
218,918
|
4.1
|
%
|
$
|
444,959
|
$
|
433,649
|
2.6
|
%
|
||||||||||||
Color *
|
126,589
|
129,241
|
-2.1
|
%
|
254,467
|
261,497
|
-2.7
|
%
|
||||||||||||||||
Corporate & Other
|
38,805
|
35,777
|
8.5
|
%
|
74,798
|
70,773
|
5.7
|
%
|
||||||||||||||||
Intersegment elimination
|
(14,506
|
)
|
(16,159
|
)
|
-10.2
|
%
|
(29,778
|
)
|
(32,482
|
)
|
-8.3
|
%
|
||||||||||||
|
||||||||||||||||||||||||
Consolidated
|
$
|
378,806
|
$
|
367,777
|
3.0
|
%
|
$
|
744,446
|
$
|
733,437
|
1.5
|
%
|
||||||||||||
|
||||||||||||||||||||||||
Operating Income
|
||||||||||||||||||||||||
|
||||||||||||||||||||||||
Flavors & Fragrances
|
$
|
32,561
|
$
|
33,459
|
-2.7
|
%
|
$
|
61,481
|
$
|
62,524
|
-1.7
|
%
|
||||||||||||
Color *
|
27,710
|
26,553
|
4.4
|
%
|
53,683
|
52,336
|
2.6
|
%
|
||||||||||||||||
Corporate & Other
|
(11,593
|
)
|
(5,714
|
)
|
(30,148
|
)
|
(14,073
|
)
|
||||||||||||||||
|
||||||||||||||||||||||||
Consolidated
|
$
|
48,678
|
$
|
54,298
|
-10.4
|
%
|
$
|
85,016
|
$
|
100,787
|
-15.6
|
%
|
||||||||||||
|
||||||||||||||||||||||||
Consolidated Excluding Restructuring Charge
|
$
|
55,320
|
$
|
54,298
|
1.9
|
%
|
$
|
104,431
|
$
|
100,787
|
3.6
|
%
|
Sensient Technologies Corporation
|
Page 7
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(In thousands, except per share amounts)
|
|
Consolidated Condensed Balance Sheets
|
||||||||
June 30,
|
2013
|
2012
|
||||||
|
||||||||
Current assets
|
$
|
770,701
|
$
|
721,690
|
||||
Goodwill and intangibles (net)
|
452,358
|
452,556
|
||||||
Property, plant and equipment (net)
|
532,121
|
472,028
|
||||||
Other assets
|
45,715
|
37,783
|
||||||
|
||||||||
Total Assets
|
$
|
1,800,895
|
$
|
1,684,057
|
||||
|
||||||||
Current liabilities
|
$
|
213,309
|
$
|
186,259
|
||||
Long-term debt
|
342,699
|
340,048
|
||||||
Accrued employee and retiree benefits
|
60,464
|
54,924
|
||||||
Other liabilities
|
22,259
|
31,756
|
||||||
Shareholders' equity
|
1,162,164
|
1,071,070
|
||||||
|
||||||||
Total Liabilities and Shareholders' Equity
|
$
|
1,800,895
|
$
|
1,684,057
|
||||
|
||||||||
Consolidated Statements of Cash Flows
|
||||||||
Three Months Ended June 30,
|
2013
|
2012
|
||||||
|
||||||||
Net cash provided by operating activities
|
$
|
44,455
|
$
|
40,139
|
||||
|
||||||||
Cash flows from investing activities:
|
||||||||
Acquisition of property, plant and equipment
|
(34,202
|
)
|
(30,908
|
)
|
||||
Proceeds from sale of assets
|
7
|
1,289
|
||||||
Other investing activity
|
(62
|
)
|
(30
|
)
|
||||
|
||||||||
Net cash used in investing activities
|
(34,257
|
)
|
(29,649
|
)
|
||||
|
||||||||
Cash flows from financing activities:
|
||||||||
Proceeds from additional borrowings
|
42,158
|
16,241
|
||||||
Debt payments
|
(31,173
|
)
|
(11,822
|
)
|
||||
Purchase of treasury stock
|
-
|
(1,744
|
)
|
|||||
Dividends paid
|
(11,508
|
)
|
(10,987
|
)
|
||||
Proceeds from options exercised and other
|
364
|
601
|
||||||
|
||||||||
Net cash used in financing activities
|
(159
|
)
|
(7,711
|
)
|
||||
|
||||||||
Effect of exchange rate changes on cash and cash equivalents
|
(2,844
|
)
|
(4,073
|
)
|
||||
|
||||||||
Net increase (decrease) in cash and cash equivalents
|
7,195
|
(1,294
|
)
|
|||||
Cash and cash equivalents at beginning of period
|
19,470
|
13,349
|
||||||
Cash and cash equivalents at end of period
|
$
|
26,665
|
$
|
12,055
|
||||
|
||||||||
Supplemental Information
|
||||||||
Three Months Ended June 30,
|
2013
|
2012
|
||||||
|
||||||||
Depreciation and amortization
|
$
|
12,930
|
$
|
12,416
|
||||
|
||||||||
Dividends per share
|
$
|
0.23
|
$
|
0.22
|