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 Employer Identification No.)
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☐
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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☐
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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☐
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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☐
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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ITEM 2.02
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RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
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ITEM 9.01
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FINANCIAL STATEMENTS AND EXHIBITS.
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Exhibit 99.1:
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Sensient Technologies Corporation Earnings Press Release for the Quarter Ended March 31, 2018.
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SENSIENT TECHNOLOGIES CORPORATION
(Registrant)
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|||
By:
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/s/ John J. Manning
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||
Name:
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John J. Manning
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||
Title:
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Vice President, General Counsel, and Secretary
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Date:
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April 25, 2018
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Sensient Technologies Corporation Earnings Press Release for the Quarter Ended March 31, 2018.
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Contact:
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Kim Chase
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(414) 347-3706
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Sensient Technologies Corporation
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Page 2
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Earnings Release – Quarter Ended March 31, 2018
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April 25, 2018
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Sensient Technologies Corporation
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Page 3
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Earnings Release – Quarter Ended March 31, 2018
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April 25, 2018
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Sensient Technologies Corporation
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Page 4
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Earnings Release – Quarter Ended March 31, 2018
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April 25, 2018
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Sensient Technologies Corporation
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Page 5
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Earnings Release – Quarter Ended March 31, 2018
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April 25, 2018
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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)
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(Unaudited)
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Consolidated Statements of Earnings
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Three Months Ended March 31,
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|||||||||||
2018
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2017
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% Change
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||||||||||
Revenue
|
$
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356,477
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$
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341,397
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4.4
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%
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||||||
Cost of products sold
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233,406
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220,452
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5.9
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%
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||||||||
Selling and administrative expenses
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67,390
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96,908
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-30.5
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%
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||||||||
Operating income
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55,681
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24,037
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131.6
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%
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||||||||
Interest expense
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5,555
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4,811
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||||||||||
Earnings before income taxes
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50,126
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19,226
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||||||||||
Income taxes
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11,932
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6,034
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||||||||||
Net earnings
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$
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38,194
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$
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13,192
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189.5
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%
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||||||
Earnings per share of common stock:
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||||||||||||
Basic
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$
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0.89
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$
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0.30
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||||||||
Diluted
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$
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0.89
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$
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0.30
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||||||||
Average common shares outstanding:
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||||||||||||
Basic
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42,879
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44,202
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||||||||||
Diluted
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43,034
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44,479
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Three Months Ended March 31,
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|||||||||||
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2018
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2017
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% Change
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|||||||||
Operating income (GAAP)
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$
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55,681
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$
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24,037
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131.6
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%
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||||||
Restructuring - Cost of products sold
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-
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342
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||||||||||
Restructuring - Selling and administrative
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-
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19,870
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||||||||||
Other - Selling and administrative
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-
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11,047
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||||||||||
Adjusted operating income
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$
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55,681
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$
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55,296
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0.7
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%
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||||||
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||||||||||||
Net earnings (GAAP)
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$
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38,194
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$
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13,192
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189.5
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%
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||||||
Restructuring and other, before tax
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-
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31,259
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||||||||||
Tax impact of restructuring and other
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-
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(7,827
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)
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|||||||||
Adjusted net earnings
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$
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38,194
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$
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36,624
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4.3
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%
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||||||
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||||||||||||
Diluted EPS (GAAP)
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$
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0.89
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$
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0.30
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196.7
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%
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||||||
Restructuring and other, net of tax
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-
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0.53
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||||||||||
Adjusted diluted EPS
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$
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0.89
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$
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0.82
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8.5
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%
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Sensient Technologies Corporation
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Page 7
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(In thousands, except per share amounts)
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(Unaudited)
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Results by Segment
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Three Months Ended March 31,
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|||||||||||
Revenue
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2018
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2017
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% Change
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|||||||||
Flavors & Fragrances
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$
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188,346
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$
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186,875
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0.8
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%
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||||||
Color
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147,160
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134,066
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9.8
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%
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||||||||
Asia Pacific
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30,267
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29,636
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2.1
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%
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||||||||
Intersegment elimination
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(9,296
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)
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(9,180
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)
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||||||||
Consolidated
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$
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356,477
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$
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341,397
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4.4
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%
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||||||
Operating Income
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||||||||||||
Flavors & Fragrances
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$
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25,327
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$
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28,770
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-12.0
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%
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||||||
Color
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33,672
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30,217
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11.4
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%
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||||||||
Asia Pacific
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4,872
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5,150
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-5.4
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%
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||||||||
Corporate & Other
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(8,190
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)
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(40,100
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)
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||||||||
Consolidated
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$
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55,681
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$
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24,037
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131.6
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%
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Consolidated Condensed Balance Sheets March 31,
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2018
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2017
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||||||
Cash and cash equivalents
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$
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30,420
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$
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29,109
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||||
Trade accounts receivable, net
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216,480
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202,343
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||||||
Inventories
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467,996
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410,067
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||||||
Other current assets
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45,023
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51,422
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||||||
Assets Held for Sale
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2,022
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6,788
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||||||
Total Current Assets
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761,941
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699,729
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||||||
Goodwill & intangible assets (net)
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433,001
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395,806
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||||||
Property, plant, and equipment (net)
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502,034
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478,582
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||||||
Other assets
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78,412
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77,085
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||||||
Total Assets
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$
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1,775,388
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$
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1,651,202
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||||
Trade accounts payable
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$
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96,136
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$
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81,260
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||||
Short-term debt
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20,237
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20,281
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||||||
Other current liabilities
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86,865
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89,543
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||||||
Total Current Liabilities
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203,238
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191,084
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||||||
Long-term debt
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691,265
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572,200
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||||||
Accrued employee and retiree benefits
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22,021
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20,430
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||||||
Other liabilities
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31,408
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17,653
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||||||
Shareholders' Equity
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827,456
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849,835
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||||||
Total Liabilities and Shareholders' Equity
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$
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1,775,388
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$
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1,651,202
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Sensient Technologies Corporation
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Page 8
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(In thousands, except per share amounts)
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|
(Unaudited)
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Consolidated Statements of Cash Flows
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||||||||
Three Months Ended March 31,
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2018
|
2017
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||||||
Cash flows from operating activities:
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||||||||
Net earnings
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$
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38,194
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$
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13,192
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||||
Adjustments to arrive at net cash provided by operating activities:
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||||||||
Depreciation and amortization
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12,578
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12,141
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||||||
Stock-based compensation
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1,254
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1,930
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||||||
Net loss on assets
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70
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386
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||||||
Loss on divestiture of businesses
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-
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31,882
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||||||
Deferred income taxes
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(4,346
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)
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2,202
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|||||
Changes in operating assets and liabilities
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(29,499
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)
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(30,574
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)
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||||
Net cash provided by operating activities
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18,251
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31,159
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||||||
Cash flows from investing activities:
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||||||||
Acquisition of property, plant and equipment
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(11,058
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)
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(10,069
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)
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||||
Cash receipts on sold receivables
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9,051
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|
6,407
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|||||
Proceeds from sale of assets
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45
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105
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||||||
Proceeds from divestiture of businesses
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-
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12,457
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||||||
Acquisition of new businesses
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(11,000
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)
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-
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|||||
Other investing activity
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(798
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)
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(63
|
)
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||||
Net cash (used in) provided by investing activities
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(13,760
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)
|
8,837
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|||||
Cash flows from financing activities:
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||||||||
Proceeds from additional borrowings
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92,348
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5,657
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||||||
Debt payments
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(12,280
|
)
|
(19,350
|
)
|
||||
Purchase of treasury stock
|
(72,704
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)
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(12,365
|
)
|
||||
Dividends paid
|
(14,274
|
)
|
(13,306
|
)
|
||||
Other financing activity
|
(2,715
|
)
|
(477
|
)
|
||||
Net cash used in financing activities
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(9,625
|
)
|
(39,841
|
)
|
||||
Effect of exchange rate changes on cash and cash equivalents
|
6,210
|
3,089
|
||||||
Net increase in cash and cash equivalents
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1,076
|
3,244
|
||||||
Cash and cash equivalents at beginning of period
|
29,344
|
25,865
|
||||||
Cash and cash equivalents at end of period
|
$
|
30,420
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$
|
29,109
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Supplemental Information
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||||||||
Three Months Ended March 31,
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2018
|
2017
|
||||||
Dividends paid per share
|
$
|
0.33
|
$
|
0.30
|