IFF's first-quarter profits flat on poor sales

01 May 2008 14:22  [Source: ICIS news]

TORONTO (ICIS news)--International Flavors & Fragrances (IFF) has posted first-quarter operating profits of $95m, unchanged year on year, and an 11% decline in net income, largely due to slow fragrance sales in the US and restructuring charges, the New York-based company said on Thursday.

 

Net sales for the three months ended 31 March rose 5% to $597m from the year-earlier quarter, while net income fell 11% to $56m.

 

Results included $6.2m in restructuring charges for employee separation costs due to the making redundant of about 125 workers in support functions.

 

Flavour sales increased 12% over the 2007 first quarter to $274m due to market share gains from new lines and volume growth of existing business, the company said.

 

Fragrance sales were flat at $323m primarily because strong growth in Asia and Europe was offset by weak demand for fragrances in North America.

 

"Despite the challenging US economic environment, which we anticipate will continue for some time, we remain confident about our growth prospects - particularly in the emerging markets - and our ability to deliver on our financial goals," said CEO Robert Amen.

 

($1 = €0.64)

By: Stefan Baumgarten
+1 713 525 2653

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