Sensient ups income, rebukes industry analyst

The Milwaukee-based company said that net income for the first quarter came in at $17.3m, compared with $15.6m for the same period last year, off the back of net sales up 8.5 per cent to $285.3m. The company, which is also a major supplier to the pharmaceutical industry and a provider of fragrances and colors to the personal care industry, said that it had experienced particularly strong results across the board in developing markets, specifically in Latin America and China, but added that sales had also been strong in the United States. The flavors & fragrances division posted record first quarter revenue of $184.3 million, an increase of 8.1 per cent compared to the first quarter of 2006. The company also said that its color division increased its sales by 7.7 per cent to $96m. "Our cosmetic and food and beverage product lines performed very well, resulting in record first quarter sales,"​ said Kenneth P. Manning, Chairman, CEO of Sensient. "We are off to a good start and I expect continued growth in 2007." ​ However, following the publication of the results yesterday, the company made a rare rebuke aimed at industry analyst John McMillin, from the Prudential Equity Group after he incorrectly stated that the company's stock reached $30 per share in April 1997. The company pointed out that share prices never exceeded $17.69 during that month, and has gone as far as suggesting that the error was a direct attempt to make the company's financial performance look weaker. "Sensient believes Mr. McMillin made the incorrect statement about Sensient's stock price in an attempt to minimize the Company's recent success,"​ the company stated in an official release. McMillin has since acknowledged the mistake but has stated in press reports that the company's stock has not performed well for nine years, whereas his initial report had stated that the company stocks had underperformed over a ten year period.