Sensient Technologies Corp (NYSE:SXT) Q1 2018 Earnings Conference Call - Preliminary Transcript

Apr 25, 2018 • 11:00 am ET

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Sensient Technologies Corp (NYSE:SXT) Q1 2018 Earnings Conference Call - Preliminary Transcript

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Presentation
Operator
Operator

Good morning everyone, and welcome to the Sensient Technologies Corporation First Quarter 2018 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
Stephen Rolfs

Good morning. I'm 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 2018 first quarter financial results. I'm joined this morning by Paul Manning, Sensient's Chairman, President and Chief Executive Officer. This morning, we released our 2018 first quarter 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, currency movements, the impact of the 2017 US tax legislation, 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 website at 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 that 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 on 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'll hear from Paul Manning.

Executive
Paul Manning

Thanks Steve. Good morning. Sensient reported adjusted earnings per share of $0.89 in the quarter compared to $0.82 in last year's first quarter. Color had a very good quarter reporting solid revenue and profit growth driven largely by the cosmetics and the food businesses. The results in cosmetics continue to be very strong with robust global demand in end markets. We had strong sales and technical resources around the world to help our customers deliver unique formulations for their products and we're making further investments to increase cosmetics production capacity.

We also continue to emphasize the commercialization of new products making it easier for our customers to manufacture their products. For example, our cosmetics team recently received the 2018 Beauty Industry Award for the Best Color Cosmetic Ingredient at the recent in-cosmetics global trade show. The food color businesses also performed very well in the quarter with strong natural color growth in North America and Asia-Pacific and I expect these strong results to continue as the