NEW YORK—International Flavors & Fragrances Inc., a global creator of flavors and fragrances for consumer products, reported third quarter (3Q) 2009 revenue of $613 million, 1 percent lower than the prior year quarter. Excluding the impact of foreign currency, revenue in local currency increased 2 percent. Reported net income for the quarter was $53 million, or $0.66 per diluted share, compared to net income of $58 million, or $0.73 per diluted share for the 3Q 2008. Net income in 2009 included an expense of $0.16 per share related to the rationalization of two European facilities and the change in the CEO position, while 3Q 2008 included a $0.02 per share negative impact from implementation costs associated with the global shared service project. Excluding these non-recurring items, adjusted EPS for the 3Q 2009 were $0.82 versus $0.74 in the prior year quarter.
Fragrance Business Unit
Fragrance sales grew 3 percent in local currency versus the 3Q 2008. Growth was achieved in all categories, with the exception of fine fragrance, as low double-digit gains in the beauty care and functional fragrance categories drove growth. Fine fragrance sales in the developed markets of North America and Europe, although still declining, showed significant improvements compared to first half 2009 results. This change reflects strong new win performance, a significant reduction in customer de-stocking along with some underlying improvement in consumer demand. Sales to emerging markets were strong, particularly Greater Asia, as new wins and increased demand from both global and regional customers drove results. Fragrance ingredient sales improved significantly compared to first half 2009, as local currency sales increased 3 percent, largely driven by a reduction in customer de-stocking activity and cost driven price increases.