Sensient Tech Sees FY Adj. EPS Slightly Below Prior Range

(RTTNews) - Sensient Technologies Corp. (SXT) said it now expects that full year adjusted earnings per share will be slightly below the range previously provided.

"I am pleased that we have now lapped the aftermath of our restructuring as well as our onion issues, which have impacted the Flavors & Fragrances segment this year," said Paul Manning, Chairman, President and CEO of Sensient Technologies Corporation.

The company noted that it has a number of headwinds relative to last year's fourth quarter earnings per share, including a higher tax rate, higher interest expense, and higher corporate expense. The higher tax rate is due to non-recurring tax benefits that occurred in the fourth quarter of 2017, and the higher corporate expense relates to a reduction in performance based compensation in last year's fourth quarter.

The company also expects the impact of the recent acquisition to reduce fourth quarter earnings per share by approximately one cent. The total impact of these headwinds is approximately ten cents, or 12% of last year's adjusted earnings per share.

Considering the impact of the items, the company expects fourth quarter earnings per share to be down mid-single digits, in percentage terms, from last year's fourth quarter adjusted earnings per share result.

As a result, the company now expects that full year adjusted earnings per share will be slightly below the range previously provided. The company said in July that it expected earnings per share for 2018 in the range of $3.60 - $3.70.