IFF Reports Third Quarter 2013 Local Currency Sales Growth of 4% and Adjusted EPS Growth of 13% to $1.22 per Diluted Share
Local Currency Sales Increase by 4%; Reported Sales Increase by 5%
Adjusted Operating Profit Margins Expand 50 basis points to 19.4%
Third Quarter 2013 Results
-
Revenue for the quarter totaled
$742.3 million , an increase of 5% from$709.0 million in the third quarter of 2012. - Excluding the impact of foreign currency, local currency sales increased 4%, led by 8% growth in the emerging markets.
-
Operating profit for the quarter totaled
$141.5 million , compared with$134.2 million in the prior year. Excluding restructuring and other charges and operational improvement costs in the current quarter1, adjusted operating profit increased 7% to$144.1 million , or 19.4% of sales, up from$134.2 million , or 18.9% of sales, in the prior year. -
Reported net income totaled
$99.0 million , compared with$16.4 million in the third quarter of 2012. Excluding restructuring and other charges and operational improvement initiative costs from the current quarter, and a$72.4 million charge related to the Spanish tax settlement from the prior year’s results1, adjusted net income increased 14% to$100.8 million from$88.7 million in the prior year. -
Reported earnings per share totaled
$1.20 compared with earnings per share of$0.20 in the third quarter of 2012. Excluding restructuring and other charges from the current quarter and the Spanish tax charge from the prior year quarter1, adjusted earnings per share increased 13% to$1.22 from$1.08 per share in the third quarter of 2012.
1 Please see the information and schedules at the end of this release for reconciliations of GAAP to non-GAAP financial metrics.
Management Commentary
“In the third quarter, IFF benefited from our balanced business mix and
continued focus on executing our three-pillar growth strategy,” said
Mr. Tough continued, “Our consolidated local currency sales growth of 4% was led by 8% growth in the emerging markets, which continue to grow at two to three times the rate of the developed markets with strong performance across both of our business units. We are also beginning to see greater stability in our Fragrance Ingredients business. Our broad and diverse portfolio of end-use product categories combined with our diverse regional footprint continues to be a source of strength for us.
“IFF’s gross margin progression this quarter reflects a continued focus on strategic initiatives, as well as a more benign raw material cost environment. As previously communicated, we continue to reinvest in our Research & Development platforms to support future growth, and to ensure a strong innovation pipeline for the near, mid and longer-term. We believe these investments will enable us to better serve our customers and provide them with new and innovative ways to drive consumer engagement.”
Mr. Tough concluded, “Looking forward, we expect to see moderate growth in the fourth quarter, given the strong growth achieved in the prior year period. We continue to expect that the Company will deliver on its long-term growth targets for the full year 2013.”
Third Quarter 2013 Operating Highlights
- Local currency sales in the emerging markets accounted for 48% of total company sales in the quarter and delivered growth of 8%.
-
Gross profit, as a percent of sales, was 43.8% compared with 42.5% in
the prior year. Gross profit for the quarter includes both operational
improvement costs related to a plant closing in
Europe and a partial plant closing inAsia , and accelerated depreciation related to the closing of our Fragrance Ingredients plant inAugusta . Excluding these charges, adjusted gross profit was 44.2%, compared with 42.5% in the prior year. The 170 basis point gross margin improvement was due to the net impact of pricing and moderating raw material costs, ongoing cost reduction efforts in Fragrances, and volume and mix gains related to new business wins. - Research, selling and administrative (RSA) expenses, as a percent of sales, increased 120 basis points to 24.8% compared with 23.6% in the third quarter of 2012. The RSA increase this quarter reflects higher incentive compensation costs as well as R&D costs associated with our biotechnology program for Fragrances and continued investments in technology. Excluding incentive compensation, adjusted RSA as a percentage of sales would have been constant.
-
Adjusted operating profit increased 7% or
$9.9 million to $144.1 million from$134.2 million in the prior year quarter. The improvement in the adjusted operating profit was due to solid sales growth combined with gross margin expansion, offset in part by higher incentive compensation accruals and R&D investments. -
The effective tax rate (ETR) for the quarter was 26.1% compared with
86.6% in the prior year quarter. Excluding the tax impact on
restructuring and operational improvements costs in the current
quarter, and the Spanish tax charge in the prior year quarter, the
adjusted effective tax rate for the quarter was 26.2% compared with an
adjusted effective tax rate of 27.2% in the prior year period. The 100
basis point reduction in the adjusted effective tax rate was primarily
driven by the benefit associated with the restoration of the U.S. R&D
tax credit combined with a more favorable mix of earnings, partially
offset by the reduction of deferred tax assets associated with a
U.K. rate change.
Fragrances Business Unit
-
Net sales increased 7% to
$392.9 million , compared with$368.3 million in the third quarter of 2012. Excluding the impact of foreign currency, local currency sales increased 5%. - Fragrance Compounds achieved local currency sales growth of 7% in the third quarter led by double-digit growth in the emerging markets. The emerging markets accounted for 50% of Fragrance Compounds’ sales this quarter.
- Fragrance Ingredients’ local currency sales growth was flat, year-over-year, and is showing signs of stabilization. The majority of product families experienced volume growth this quarter.
-
Within Fragrance Compounds, our Fine & Beauty Care category had local
currency sales growth of 5% led by double-digit growth in EAME,
Latin America andGreater Asia . Functional Fragrances had local currency sales growth of 8%, led by double-digit growth inGreater Asia andLatin America . This marks the 21st consecutive quarter of growth in Functional Fragrances, due to a high level of new wins with both global and regional customers. - Gross margins in our Fragrances business unit increased over the prior year quarter, primarily due to moderating raw material costs, a strong level of new wins combined with an improved business mix, and ongoing cost reduction efforts.
-
Fragrances segment profit increased
$16 million , or 24%, to$81.3 million in the third quarter of 2013, up from$65.3 million in the prior year quarter. The segment profit margin increased 300 basis points to 20.7%, up from 17.7%. The segment profit improvement was the result of solid sales growth combined with gross margin expansion and ongoing productivity initiatives.
Flavors Business Unit
-
Reported net sales increased 3% to
$349.4 million , compared with$340.7 million in the prior year quarter. Excluding the impact of foreign currency, local currency sales also increased 3%, marking the 31st quarter of consecutive local currency sales growth for Flavors. -
Flavors delivered growth in every region, led by high single-digit
growth in
Latin America and low single-digit growth inGreater Asia , EAME andNorth America . - On an end-use category basis, sales growth was led by high single-digit growth in Beverage and mid-single digit growth in Savory and Sweet, partially offset by a decline in Dairy.
- Gross margins in the Flavors business increased over the prior year quarter primarily as a result of the net impact of moderating raw material costs and pricing.
-
Flavors segment profit increased
$5 million , or 7%, to$81.1 million in the third quarter of 2013, compared to$76.1 million the prior year quarter. The segment profit margin increased 80 basis points to 23.2%, up from 22.4% in the prior year.
Audio Webcast
A live webcast to discuss the Company's third quarter financial results
and full year outlook will be held today,
About IFF
Cautionary Statement Under The Private Securities Litigation Reform Act of 1995
This press release includes “forward-looking statements” under the
Federal Private Securities Litigation Reform Act of 1995, including
statements regarding the Company’s expectations concerning (i) growth in
the fourth quarter of 2013; (ii) the impact of R&D investments on future
growth and innovation; and (iii) its ability to execute on its long-term
strategic plan and reach its long-term growth targets in 2013. These
forward-looking statements are qualified in their entirety by cautionary
statements and risk factor disclosures contained in the Company’s
International Flavors & Fragrances Inc. Consolidated Income Statement (Amounts in thousands except per share data) (Unaudited) |
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Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||
2013 | 2012 | % Change | 2013 | 2012 | % Change | |||||||||||||||
Net sales | $ | 742,256 | $ | 708,955 | 5 | % | $ | 2,227,727 | $ | 2,140,888 | 4 | % | ||||||||
Cost of goods sold | 416,852 | 407,431 | 2 | % | 1,256,977 | 1,252,422 | 0 | % | ||||||||||||
Gross margin | 325,404 | 301,524 | 8 | % | 970,750 | 888,466 | 9 | % | ||||||||||||
Research and development | 65,654 | 57,658 | 14 | % | 189,428 | 171,467 | 10 | % | ||||||||||||
Selling and administrative | 118,221 | 109,691 | 8 | % | 357,687 | 327,942 | 9 | % | ||||||||||||
Restructuring and other charges | — | — | 2,105 | 1,668 | ||||||||||||||||
Interest expense | 11,625 | 9,907 | 35,637 | 31,330 | ||||||||||||||||
Other (income) expense, net | (4,080 | ) | 2,424 | (16,359 | ) | 1,333 | ||||||||||||||
Pretax income | 133,984 | 121,844 | 10 | % | 402,252 | 354,726 | 13 | % | ||||||||||||
Income taxes | 34,938 | 105,481 | (67 | )% | 110,187 | 168,710 | (35 | )% | ||||||||||||
Net income | $ | 99,046 | $ | 16,363 | 505 | % | $ | 292,065 | $ | 186,016 | 57 | % | ||||||||
Earnings per share - basic | $ | 1.21 | $ | 0.20 | $ | 3.57 | $ | 2.28 | ||||||||||||
Earnings per share - diluted | $ | 1.20 | $ | 0.20 | $ | 3.54 | $ | 2.26 | ||||||||||||
Average shares outstanding | ||||||||||||||||||||
Basic | 81,437 | 81,246 | 81,349 | 81,241 | ||||||||||||||||
Diluted | 82,043 | 81,898 | 81,959 | 81,984 |
International Flavors & Fragrances Inc. Condensed Consolidated Balance Sheet (Amounts in thousands) (Unaudited) |
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September 30, | December 31, | |||||
2013 | 2012 | |||||
Cash & cash equivalents | $ | 343,149 | $ | 324,422 | ||
Receivables | 553,884 | 499,443 | ||||
Inventories | 520,707 | 540,658 | ||||
Other current assets | 216,127 | 208,164 | ||||
Total current assets | 1,633,867 | 1,572,687 | ||||
Property, plant and equipment, net | 656,662 | 654,641 | ||||
Goodwill and other intangibles, net | 697,716 | 702,270 | ||||
Other assets | 336,266 | 316,594 | ||||
Total assets | $ | 3,324,511 | $ | 3,246,192 | ||
Bank borrowings and overdrafts, and | ||||||
current portion of long-term debt | $ | 144 | $ | 150,071 | ||
Other current liabilities | 509,432 | 479,807 | ||||
Total current liabilities | 509,576 | 629,878 | ||||
Long-term debt | 933,464 | 881,104 | ||||
Non-current liabilities | 441,941 | 482,655 | ||||
Shareholders' equity | 1,439,530 | 1,252,555 | ||||
Total liabilities and shareholders' equity | $ | 3,324,511 | $ | 3,246,192 |
International Flavors & Fragrances Inc. Consolidated Statement of Cash Flows (Amounts in thousands) (Unaudited) |
||||||||||
Nine Months Ended September 30, | ||||||||||
2013 | 2012 | |||||||||
Cash flows from operating activities: | ||||||||||
Net income | $ | 292,065 | $ | 186,016 | ||||||
Adjustments to reconcile to net cash provided by operations: | ||||||||||
Depreciation and amortization | 61,084 | 56,332 | ||||||||
Deferred income taxes | (5,167 | ) | (13,830 | ) | ||||||
Gain on disposal of assets | (18,859 | ) | (2,243 | ) | ||||||
Stock-based compensation | 18,919 | 15,363 | ||||||||
Pension settlement/curtailment | — | 874 | ||||||||
Spanish tax charge | — | 72,362 | ||||||||
Payments pursuant to Spanish tax settlement | — | (105,503 | ) | |||||||
Changes in assets and liabilities | ||||||||||
Current receivables | (72,051 | ) | (66,364 | ) | ||||||
Inventories | 10,679 | (3,751 | ) | |||||||
Accounts payable | (11,581 | ) | (33,652 | ) | ||||||
Accruals for incentive compensation | (1,298 | ) | 14,927 | |||||||
Other current payables and accrued expenses | 27,416 | 29,095 | ||||||||
Changes in other assets/liabilities | (43,891 | ) | (12,048 | ) | ||||||
Net cash provided by operating activities | 257,316 | 137,578 | ||||||||
Cash flows from investing activities: | ||||||||||
Additions to property, plant and equipment | (86,448 | ) | (84,176 | ) | ||||||
Purchase of life insurance contracts | — | (1,127 | ) | |||||||
Proceeds from termination of life insurance contracts | 793 | 5,327 | ||||||||
Maturity of net investment hedges | 626 | 1,960 | ||||||||
Proceeds from disposal of assets | 16,782 | 223 | ||||||||
Net cash used in investing activities | (68,247 | ) | (77,793 | ) | ||||||
Cash flows from financing activities: | ||||||||||
Cash dividends paid to shareholders | (55,525 | ) | (75,458 | ) | ||||||
Net change in revolving credit facility borrowings and overdrafts | (282,915 | ) | 8,376 | |||||||
Deferred financing costs | (2,800 | ) | — | |||||||
Repayments of long-term debt | (100,000 | ) | — | |||||||
Proceeds from long-term debt | 297,786 | — | ||||||||
Proceeds from issuance of stock under stock plans | 3,613 | 7,664 | ||||||||
Excess tax benefits on stock-based payments | 5,583 | 6,920 | ||||||||
Purchase of treasury stock | (31,923 | ) | — | |||||||
Net cash used in financing activities | (166,181 | ) | (52,498 | ) | ||||||
Effect of exchange rates changes on cash and cash equivalents | (4,161 | ) | 1,615 | |||||||
Net change in cash and cash equivalents | 18,727 | 8,902 | ||||||||
Cash and cash equivalents at beginning of year | 324,422 | 88,279 | ||||||||
Cash and cash equivalents at end of period | $ | 343,149 | $ | 97,181 |
International Flavors & Fragrances Inc. Business Unit Performance (Amounts in thousands) (Unaudited) |
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Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Net Sales | ||||||||||||||||
Flavors | $ | 349,385 | $ | 340,674 | $ | 1,079,786 | $ | 1,051,932 | ||||||||
Fragrances | 392,871 | 368,281 | 1,147,941 | 1,088,956 | ||||||||||||
Consolidated | 742,256 | 708,955 | 2,227,727 | 2,140,888 | ||||||||||||
Segment Profit | ||||||||||||||||
Flavors | 81,101 | 76,145 | 254,055 | 236,458 | ||||||||||||
Fragrances | 81,309 | 65,331 | 221,577 | 185,049 | ||||||||||||
Global Expenses | (18,313 | ) | (7,301 | ) | (47,236 | ) | (32,450 | ) | ||||||||
Restructuring and other charges, net | — | — | (2,105 | ) | (1,668 | ) | ||||||||||
Operational improvement initiative costs | (2,568 | ) | — | (4,761 | ) | — | ||||||||||
Operating profit | 141,529 | 134,175 | 421,530 | 387,389 | ||||||||||||
Interest Expense | (11,625 | ) | (9,907 | ) | (35,637 | ) | (31,330 | ) | ||||||||
Other income (expense), net | 4,080 | (2,424 | ) | 16,359 | (1,333 | ) | ||||||||||
Income before taxes | $ | 133,984 | $ | 121,844 | $ | 402,252 | $ | 354,726 | ||||||||
Operating Margin | ||||||||||||||||
Flavors | 23.2 | % | 22.4 | % | 23.5 | % | 22.5 | % | ||||||||
Fragrances | 20.7 | % | 17.7 | % | 19.3 | % | 17.0 | % | ||||||||
Consolidated | 19.1 | % | 18.9 | % | 18.9 | % | 18.1 | % |
International Flavors & Fragrances Inc. Sales Performance by Region and Category (Unaudited) |
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Third Quarter 2013 vs. 2012 | ||||||||||||||
Percentage Change in Sales by Region of Destination | ||||||||||||||
Fine & Beauty Care | Functional | Ingredients | Total Frag. | Flavors | Total | |||||||||
North America | Reported | -10% | 7% | -2% | -2% | 1% | 0% | |||||||
EAME | Reported | 16% | 4% | -1% | 8% | 5% | 7% | |||||||
Local Currency | 10% | 0% | -5% | 3% | 3% | 3% | ||||||||
Latin America | Reported | 7% | 10% | -8% | 7% | 4% | 6% | |||||||
Local Currency | 10% | 12% | -9% | 9% | 7% | 8% | ||||||||
Greater Asia | Reported | 9% | 16% | 25% | 15% | 1% | 6% | |||||||
Local Currency | 10% | 16% | 31% | 16% | 4% | 8% | ||||||||
Total | Reported | 6% | 9% | 1% | 7% | 2% | 5% | |||||||
Local Currency | 5% | 8% | 0% | 5% | 3% | 4% | ||||||||
2013 vs. 2012 | ||||||||||||||
Percentage Change in Sales by Region of Destination | ||||||||||||||
Fine & Beauty Care | Functional | Ingredients | Total Frag. | Flavors | Total | |||||||||
North America | Reported | -2% | 1% | -4% | -1% | -1% | -1% | |||||||
EAME | Reported | 8% | 6% | -5% | 4% | 5% | 4% | |||||||
Local Currency | 6% | 4% | -6% | 3% | 5% | 3% | ||||||||
Latin America | Reported | 12% | 12% | -7% | 10% | 2% | 7% | |||||||
Local Currency | 16% | 13% | -7% | 13% | 4% | 10% | ||||||||
Greater Asia | Reported | 9% | 14% | 0% | 10% | 4% | 6% | |||||||
Local Currency | 9% | 14% | 5% | 12% | 6% | 8% | ||||||||
Total | Reported | 7% | 8% | -4% | 5% | 3% | 4% | |||||||
Local Currency | 7% | 8% | -4% | 5% | 4% | 5% |
Note: Local currency sales growth is calculated by translating prior year sales at the exchange rates used for the corresponding 2013 period.
International Flavors & Fragrances Inc. Reconciliation of Like-for-Like Sales Growth (Unaudited) |
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% Change in Sales for the Nine Months Ended September 30, 2013 | |||||||||
Reported Sales Growth | Local Currency Sales Growth (1) | Exit of Low-Margin Sales Activities | Like-for-Like Sales Growth (2) | ||||||
Total Company | 4% | 5% | 1% | 6% | |||||
Flavors: | |||||||||
North America | -1% | -1% | 7% | 6% | |||||
EAME | 5% | 5% | 0% | 5% | |||||
Latin America | 2% | 4% | 4% | 8% | |||||
Greater Asia | 4% | 6% | 0% | 6% | |||||
Total Flavors | 3% | 4% | 2% | 6% | |||||
(1) Local currency sales growth is calculated by translating prior year sales at the exchange rates used for the corresponding 2013 period.
(2) Like-for-like is a non-GAAP metric that excludes the impact of exiting low-margin sales activities and foreign exchange.
*Note: The exit of low-margin sales activities was substantially completed as of the second quarter.
International Flavors & Fragrances Inc. Reconciliation of Income (Amounts in thousands) (Unaudited) |
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The following information and schedules provide reconciliation information between reported GAAP amounts and certain adjusted amounts. This information and schedules is not intended as, and should not be viewed as, a substitute for reported GAAP amounts or financial statements of the Company prepared and presented in accordance with GAAP. |
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Third Quarter 2013 | |||||||||||||||||
Items Impacting Comparability | |||||||||||||||||
Reported (GAAP) | Restructuring and Other Charges | Operational Improvement Initiative Costs | Adjusted (Non-GAAP) | ||||||||||||||
Net Sales | 742,256 | ||||||||||||||||
Cost of Goods Sold | 416,852 | (2,167 | ) | (a) | (401 | ) | (b) | ||||||||||
Gross Profit | 325,404 | 2,167 | 401 | 327,972 | |||||||||||||
Research and Development | 65,654 | ||||||||||||||||
Selling and Administrative | 118,221 | ||||||||||||||||
RSA Expense | 183,875 | ||||||||||||||||
Restructuring and other charges, net | — | ||||||||||||||||
Operating Profit | 141,529 | 2,167 | 401 | 144,097 | |||||||||||||
Interest Expense | 11,625 | ||||||||||||||||
Other (Income) expense, net | (4,080 | ) | |||||||||||||||
Income before taxes | 133,984 | 2,167 | 401 | 136,552 | |||||||||||||
Taxes on Income | 34,938 | 758 | 97 | 35,793 | |||||||||||||
Net Income | 99,046 | 1,409 | 304 | 100,759 | |||||||||||||
Earnings per share - diluted | $ | 1.20 | $ | 0.02 | $ | 0.00 | $ | 1.22 | |||||||||
(a) | Costs related to the Fragrance Ingredients Rationalization | ||||||||||||||||
(b) | Related to plant closing in Europe and partial closing in Asia |
Third Quarter 2012 | ||||||||
Items Impacting Comparability | ||||||||
Reported (GAAP) | Spanish Tax Charge | Adjusted (Non-GAAP) | ||||||
Net Sales | 708,955 | |||||||
Cost of Goods Sold | 407,431 | |||||||
Gross Profit | 301,524 | |||||||
Research and Development | 57,658 | |||||||
Selling and Administrative | 109,691 | |||||||
RSA Expense | 167,349 | |||||||
Restructuring and other charges, net | — | |||||||
Operating Profit | 134,175 | |||||||
Interest Expense | 9,907 | |||||||
Other (Income) expense, net | 2,424 | |||||||
Income before taxes | 121,844 | |||||||
Taxes on Income | 105,481 | (72,362) |
(a) |
33,119 | ||||
Net Income | 16,363 | 72,362 | 88,725 | |||||
Earnings per share - diluted | $ 0.20 | $ 0.88 | $ 1.08 | |||||
(a) | Pursuant to the Spanish tax settlement; includes a $0.71 per share charge to net income covering the fiscal years 2004-2010 and a $0.17 per share accrual for uncertain tax positions for years not settled. |
International Flavors & Fragrances Inc. Reconciliation of Income (Amounts in thousands) (Unaudited) |
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The following information and schedules provide reconciliation information between reported GAAP amounts and certain adjusted amounts. This information and schedules is not intended as, and should not be viewed as, a substitute for reported GAAP amounts or financial statements of the Company prepared and presented in accordance with GAAP |
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Third Quarter Year-to-Date 2013 | ||||||||||||||||||||||||
Items Impacting Comparability | ||||||||||||||||||||||||
Reported (GAAP) | Restructuring and Other Charges | Operational Improvement Initiative Costs | Spanish Tax Charge | Gain on Asset Sale | Adjusted (Non-GAAP) | |||||||||||||||||||
Net Sales | 2,227,727 | |||||||||||||||||||||||
Cost of Goods Sold | 1,256,977 | (3,000 | ) | (a) | (1,761 | ) | (b) | |||||||||||||||||
Gross Profit | 970,750 | 3,000 | 1,761 | |||||||||||||||||||||
Research and Development | 189,428 | |||||||||||||||||||||||
Selling and Administrative | 357,687 | |||||||||||||||||||||||
RSA Expense | 547,115 | |||||||||||||||||||||||
Restructuring and other charges, net | 2,105 | (2,105 | ) | (a) | ||||||||||||||||||||
Operating Profit | 421,530 | 5,105 | 1,761 | 428,396 | ||||||||||||||||||||
Interest Expense | 35,637 | |||||||||||||||||||||||
Other (Income) expense, net | (16,359 | ) | 16,093 | (d) | (266 | ) | ||||||||||||||||||
Income before taxes | 402,252 | 5,105 | 1,761 | (16,093 | ) | 393,025 | ||||||||||||||||||
Taxes on Income | 110,187 | 1,787 | 412 | (6,230 | ) | (c) | (5,633 | ) | 100,523 | |||||||||||||||
Net Income | 292,065 | 3,318 | 1,349 | 6,230 | (10,460 | ) | 292,502 | |||||||||||||||||
Earnings per share - diluted | $ | 3.54 | $ | 0.04 | $ | 0.02 | $ | 0.08 | $ | (0.13 | ) | $ | 3.55 | |||||||||||
(a) | Costs related to the Fragrance Ingredients Rationalization | |||||||||||||||||||||||
(b) | Related to plant closings in Europe and partial closing in Asia | |||||||||||||||||||||||
(c) | Spanish tax charge related to the 2002-2003 ruling | |||||||||||||||||||||||
(d) | Represents a gain on sale of a non-operating asset |
Third Quarter Year-to-Date 2012 | ||||||||||
Items Impacting Comparability | ||||||||||
Reported (GAAP) | Restructuring and Other Charges | Spanish Tax Charge | Adjusted (Non-GAAP) | |||||||
Net Sales | 2,140,888 | |||||||||
Cost of Goods Sold | 1,252,422 | |||||||||
Gross Profit | 888,466 | |||||||||
Research and Development | 171,467 | |||||||||
Selling and Administrative | 327,942 | |||||||||
RSA Expense | 499,409 | |||||||||
Restructuring and other charges, net |
1,668 | (1,668 | ) | (a) | ||||||
Operating Profit | 387,389 | 1,668 | 389,057 | |||||||
Interest Expense | 31,330 | |||||||||
Other (Income) expense, net | 1,333 | 1,333 | ||||||||
Income before taxes | 354,726 | 1,668 | 356,394 | |||||||
Taxes on Income | 168,710 | 621 | (72,362 | ) | (b) | 96,969 | ||||
Net Income | 186,016 | 1,047 | 72,362 | 259,425 | ||||||
Earnings per share - diluted | $ 2.26 | $ 0.01 | $ 0.88 | $ 3.15 | ||||||
(a) | Related to restructuring program announced in Q1 2012 | |||||||||
(b) | Pursuant to the Spanish tax settlement; includes a $0.71 per share charge to net income covering the fiscal years 2004-2010, and a $0.17 per share accrual for uncertain tax positions for years not settled. |
Source:
Investor Relations:
International Flavors & Fragrances Inc.
Shelley
Young, 212-708-7271
Director, Investor Relations