Sensient Technologies Corporation (NYSE:SXT) Q4 2015 Earnings Conference Call - Final Transcript

Feb 05, 2016 • 11:00 am ET

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Sensient Technologies Corporation (NYSE:SXT) Q4 2015 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good morning, everyone and welcome to the Sensient Technologies Corporation 2015 Fourth Quarter and Year End Conference Call. Today's call is being recorded.

At this time for opening remarks, I would like to turn the call over to Mr. Steve Rolfs. Please go ahead, sir.

Executive
Steve Rolfs

Good morning. I am Steve Rolfs, Senior Vice President and Chief Financial Officer of Sensient Technologies Corporation. I would like to welcome all of you to Sensient's conference call to discuss 2015 Fourth Quarter and Full Year Financial Results. I am joined this morning by Paul Manning, Sensient's President and Chief Executive Officer.

Yesterday, we released our 2015 fourth quarter and full year financial results. A copy of the release is now available on our website at sensient.com. During our call today, we will reference certain non-GAAP financial measures, which we believe provide investors with additional information to evaluate the Company's performance and improve the comparability of results between reporting periods. These non-GAAP financial measures remove the impact of restructuring costs, acquisition related costs, currency movements and other costs as noted in the Company's filings.

Non-GAAP financial results should not be considered an isolation from or as a substitute for financial information calculated in accordance with GAAP. A reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures is available on the Investor information section of our Web site at www.sensient.com and in our press release. We encourage investors to review these reconciliations in connection with the comments we make this morning.

I would also like to remind everyone the comments made this morning including responses to your questions may include forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Our statements may be affected by certain factors, including risks and uncertainties which are discussed in detail in the Company's filings with the Securities and Exchange Commission. We urge you to read Sensient's filings for a description of these factors. Please bear these factors in mind when you analyze our comments today.

Now, we will hear from Paul Manning.

Executive
Paul Manning

Thanks Steve. Good morning. Sensient reported adjusted earnings per share of $0.71 in the fourth quarter equal to the EPS reported in the comparable period last year. Foreign currency translation reduced earnings per share by $0.04 in the quarter and in local currency adjusted EPS increased by 6%. And local currency, revenue grew 5% and adjusted operating income increased 3%. Most of our businesses performed very well in the fourth quarter. In local currency, the flavors and fragrances groups operating income grew 8% and its operating margin improved by 100 basis points.

The Asia Pacific Group's operating income was up about 5% of local currency. And within the color group, the food color, cosmetics and pharmaceutical businesses all reported solid profit growth in local currency, but the color group's operating income declined due to the performance of the specialty inks business.

For the full year, Sensient reported adjusted earnings per share of $3.05 compared to $3.02 in 2014. Foreign currency