The ink manufacturer’s parent company recorded revenue of $346.2 million, down 5.7 percent from the 2014 figure of $367.1 million.
Consolidated revenue was $346.2 million (€310.2 million) for the first quarter of 2015 and $367.1 million (€328.9 million) for the same period in 2014, with reported assets also falling from $817,221 (€732,342) to $734,182 (€657,928) this year, while operating income was recorded at $46.4 million (€41.5 million) and $8.6 million (€7.7 million) in the first quarters of 2014 and 2015 respectively.
Sensient introduced a restructuring plan in 2014 to clear out underperforming operations and consolidate its manufacturing facilities, the costs of which were included in the 1Q 2015 report. Restructuring costs brought down operating income by $7.1 million (€6.3 million), in the 2015 quarter and $46.2 million (€41.4 million), in the first quarter of 2014.
Further adjusted results, which are calculated without the restructuring costs and as such reflect the group’s “overall performance”, included adjusted operating income of $53.6 million (€48 million) in this year’s first quarter compared to $54.8 million (€49.1 million) in the first quarter of 2014, with adjusted operating margin increasing 60 basis points to 15.5 percent.
Looking at the different divisions, the Color Group had revenue of $120.5 million (€107.9 million) and $133.0 million (€119.1 million) in the first quarters of 2015 and 2014 respectively, while operating income was $26.1 million (€23.3 million) in the quarter compared to $29.8 million (€26.7 million) last year. The food and beverage, cosmetics and pharmaceutical businesses all reported “solid local currency profit growth” in 1Q2015. Sensient anticipates that “foreign currency will have a significant impact” on its 2015 results.
Paul Manning, President and CEO of Sensient Technologies, said: “We delivered a solid performance in the first quarter. The Flavors and Fragrances Group grew both revenue and operating income in local currency, and most of the businesses in the Color Group also reported local currency profit growth.
“I was also pleased with our cash flow results and the inventory reduction achieved in the quarter. Our strategy is working, and we remain committed to delivering sustainable long term value to our shareholders.”