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The company's net income for the third quarter declined to $52.80 million from $57.68 million reported last year. Earnings dropped to $0.66 per share from $0.73 per share in the previous year. For the second quarter, the company reported net income of $48.08 million or $0.60 per share.
The latest quarterly results included an expense of $0.16 per share related to the rationalization of two European facilities and the change in the Chief Executive Officer position. Excluding non-recurring items, earnings for the quarter were $0.82 per share.
On average, five analysts polled by Thomson Reuters expected the company to earn $0.72 per share for the quarter. Analysts' estimates typically exclude special items.
Net sales for the quarter edged down 1% to $612.63 million from $617.54 million in the previous year. Excluding the impact of foreign currency, revenue rose 2% from last year. Analysts expected the company to report revenue of $597.03 million for the quarter. The company's second-quarter net sales were $568.26 million.
Operating profit for the third quarter declined to $86.71 million from $100.61 million.
Net sales of Flavors declined to $275.42 million from $278.24 million. The segment's overall growth was driven by new wins in North America, combined with stronger volumes, and new wins in Confectionary and Dairy in the EAME region. While underlying demand in the emerging markets remained strong, the loss of non-strategic business in Latin America and customer specific volume weakness in Greater Asia impacted results.
Operating profit at Flavors segment rose to $54.98 million from $51.57 million, reflecting higher pricing, margin and cost recovery efforts, combined with lower overhead expenses.
Fragrances generated $337.21 million in the just concluded quarter, a slight decline from last year's $339.30 million, with all categories, except Fine Fragrance, reporting growth. The segment's operating profit dropped to $46.22 million from $54.86 million in the previous year due to an $11 million restructuring charge related to the company's European facility rationalization plan.
The company incurred restructuring and other charges of $10.5 million in the latest quarter. For the just concluded quarter, the company recorded $24 thousand in Other income, compared to Other expense of $3.01 million recorded last year.
For the first three quarters of the fiscal net income dipped to $148.08 million from $180.66 million last year. Earnings dropped to $1.86 per share from $2.24 per share. Net sales declined to $1.741 billion from $1.850 billion.
Looking ahead to the fourth quarter, Kevin Berryman, Executive Vice President and Chief Financial Officer of the company, said, "While predicting near-term economic conditions remain difficult, we believe that we are well-positioned to deliver positive local currency sales growth in the fourth quarter. We remain committed to our strategic vision as well as taking the appropriate actions necessary to make 2009 a year of progress as we move into 2010 on a positive trend."
In mid-September, the company said its Chairman and CEO Robert Amen resigned, effective September 30. Douglas Tough, an IFF Board member and chief executive officer and managing director of Ansell Limited, assumed the role of Non-Executive Chairman on October 1. The company added that Tough will become Chairman and CEO when his contract with his current employer expires no later than the end of first quarter of 2010.
IFF closed Wednesday's regular trade at $38.86, up from the previous close of $38.51, on 638,000 shares.
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