intl flavors & fragrances (IFF) Key Developments
International Flavors & Fragrances Inc. Opens New Flavors Facilities in Indonesia and Chile
Nov 21 14
International Flavors & Fragrances Inc. announced the opening of a creative facility in Jakarta, Indonesia, and a sales office and applications laboratories in Santiago, Chile. The new flavors creative center in Jakarta is located on an existing IFF site that has been rebuilt to double its footprint to 1,500 m(2). The facility will primarily support customers in Indonesia, where the company has maintained a presence for nearly 60 years. In keeping with IFF's commitment to reduce its impact on the environment across geographies, the building incorporates advanced sustainability principles including heat, water and emission management systems. The new site in Santiago, which officially opens on November 26, comprises sales offices and applications laboratories dedicated exclusively to meet the growing demand for flavors in Chile. The facility is approximately 300 m(2), and is IFF's first in this Latin American country.
International Flavors & Fragrances Inc. Management Changes Effective December 18, 2014
Nov 14 14
International Flavors & Fragrances Inc. announced that Richard A. O'Leary, the company's current Vice President and Controller, will assume the role of Interim Chief Financial Officer effective December 18, 2014. This announcement comes as Kevin Berryman, Executive Vice President and Chief Financial Officer, informed the company that he has chosen to depart IFF on such date to take a senior leadership role outside the organization. Mr. O'Leary, 54, joined the company in 2007 and has most recently served as the Company's Vice President and Controller since June 2009. Previously, he served as the Company's Interim Chief Financial Officer from July 2008 to May 2009 and as its Vice President, Corporate Development from July 2007 to May 2009. Prior to joining the company, Mr. O'Leary held several international and U.S.-based finance management positions with increasing responsibility during his more than 20 years with International Paper Company. Prior to International Paper, he was with Arthur Young & Co.
International Flavors & Fragrances Inc. Reports Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended September 30, 2014; Provides Earnings Guidance for the Full Year of 2014
Nov 4 14
International Flavors & Fragrances Inc. reported unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2014. For the quarter, the company reported net sales totaled $773.8 million, an increase of 4% from $742.3 million in the third quarter of 2013. On a U.S. GAAP basis, operating profit rose 8% to $152.6 million from $141.5 million for the third quarter of 2013. GAAP earnings per diluted share (EPS) rose 9% to $1.31 versus $1.20 for the same period in 2013. Excluding items impacting comparability, adjusted operating profit increased 7%, or $9.4 million, to $153.5 million from $144.1 million in the third quarter of 2013. The improvement reflects lower incentive compensation expense and continued cost management. The results of Aromor were not significant to the consolidated financial results of the company for the third quarter of 2014. Pretax income was $142,185,000 compared to $133,984,000 a year ago. Net income was $107,415,000 compared to $99,046,000 a year ago. Adjusted net income (Non- GAAP) was $108,022,000 or $1.32 per diluted share, compared to $100,759,000 or $1.22 per diluted share, a year ago.
For the year to date, the company’s net sales were $2,332,451,000 compared to $2,227,727,000 a year ago. Operating profit was $461,759,000 compared to $421,530,000 a year ago. Adjusted operating profit was $468,685,000 compared to $428,396,000 a year ago. Pretax income was $431,472,000 compared to $402,252,000 a year ago. Net income was $324,408,000 or $3.95 per diluted share, compared to $292,065,000 or $3.54 per diluted share, a year ago. Adjusted net income (Non- GAAP) was $329,003,000 or $4.01 per diluted share, compared to $292,502,000 or $3.55 per diluted share, a year ago. Net cash provided by operating activities was $317,503,000 compared to $257,316,000 a year ago. Cash flow from operations for the first nine months of 2014 benefited from higher net income, lower year-over-year pension contributions, and lower tax payments, partially offset by higher incentive compensation payments in 2014. Additions to property, plant and equipment were $97,820,000 compared to $86,448,000 a year ago. The year-over-year improvement in adjusted EPS reflects higher operating income, lower interest expense and a lower tax rate.
The company provided earnings guidance for the full year of 2014. The company puts on track to deliver its full year estimate of 4% to 6% local currency sales growth. The company also continues to believe it will deliver double-digit growth in adjusted operating profit and adjusted earnings per share for the full year at levels that compare favorably to the company's long-term targets. The fully expect the drivers of lower tax rate, including the greater mix of earnings from lower-tax jurisdictions, to continue to be a driver to improved effective tax rate for the full year versus year ago.
International Flavors & Fragrances Inc. Amends By-Laws
Oct 27 14
On October 23, 2014, the International Flavors & Fragrances Inc.'s Board of Directors elected Andreas Fibig, the Company's Chief Executive Officer, as Chairman of the Board of the company, effective December 1, 2014. In connection with the election of Mr. Ducker as a director, on October 22, 2014, the Board of Directors of the company approved an amendment to Article II, Section 2 of the company's By-laws to increase the number of directors from twelve to thirteen effective October 22, 2014. The Board of Directors also approved an amendment to Article VI, Section 1 to provide indemnification to individuals serving at the request of the Company as a director, officer, employee, fiduciary or agent of an affiliate of the Company.
International Flavors & Fragrances Inc. Announces Board Changes, Effective December 1, 2014
Oct 27 14
International Flavors & Fragrances Inc. announced that the Company's Board of Directors has appointed Andreas Fibig, who serves as the Company's Chief Executive Officer, as Chairman of the Board, effective December 1, 2014. Mr. Fibig will succeed Doug Tough, the current IFF Chairman, who will retire from the Board effective December 1, 2014. As previously communicated, Mr. Tough stepped down as CEO on September 1, 2014, and has been serving as Chairman of the Board to ensure a seamless transition. Mr. Fibig was appointed Chief Executive Officer of International Flavors & Fragrances on September 1, 2014 and has been a member of the IFF Board of Directors since 2011. Prior to joining IFF, Mr. Fibig was President and Chair of the Board of Management of Bayer Healthcare Pharmaceuticals. Prior to joining Bayer, Mr. Fibig held a number of positions of increasing responsibility at Pfizer Inc., including Senior Vice President of the US Pharmaceutical Operations group and President, Latin America, Africa and Middle East. He also held positions with Pharmacia GmbH and Boehringer Ingelheim GmbH.