US producer of colours, flavours and fragrances Sensient Technologies said on Monday that its first-quarter earnings had climbed a massive 54 per cent. Revenue for the first quarter ended 31 March increased 8.9 per cent to $213.1 million (€240.3m) from $195.7 million last year.
The company reported that higher volumes and increased margins in the flavours and fragrances unit, combined with a solid performance from the colours unit, led to the favourable results in the quarter.
The company added that restructuring and workforce reduction programmes, begun in December of 2000, helped to contribute to lower costs throughout the company. Selling and administrative expenses as a per cent of revenue decreased to 17.9 per cent for the first quarter, compared to 19.6 per cent in the comparable quarter of 2001.
"The execution of our strategic plan continues to deliver results," said Kenneth P. Manning, chairman and CEO of Sensient Technologies Corporation. "The cost improvement programmes that began in December 2000 and our strategy to reposition the Company have enabled us to exceed our earnings guidance for the quarter."
Diluted earnings per share from continuing operations were $.36, up 56.5 per cent.