* Q1 EPS $1.03 vs. Street forecast 94 cents
* Revenue up 9 percent to $714.2 million
* Sees full-year 2011 EPS growing more than 10 pct
* Shares hit new high
(Adds CEO outlook comments, stock move)
NEW YORK, May 10 International Flavors and
Fragrances Inc (IFF.N) posted a higher-than-expected quarterly
profit on Tuesday and said it believes it can reach its goal of
full-year 2011 earnings, increasing by more than 10 percent
despite growing raw material costs.
The first-quarter performance, driven by strong sales of
food additives in emerging markets, helped send the company's
shares up to an all-time high of $66.23 in early trading. They
retreated later and were up 2.5 percent at $65.34 in afternoon
trading on the New York Stock Exchange.
"We are optimistic that our performance in the first
quarter, coupled with the opportunities we see throughout the
remainder of the year, give us the confidence to achieve our
long-term targets," Chairman and Chief Executive Officer Doug
Tough told Wall Street analysts on a conference call.
International Flavors and Fragrances targeted local
currency sales growth of 4 percent to 6 percent this year, he
said. Operating profit is expected to grow by 7 percent to 9
percent and earnings per share should expand by 10 percent or
more, Tough said.
While first-quarter raw material costs rose by 4 percent
and were continuing to go up, he said the company was
"cautiously optimistic" its price increases in the second half
of the year will mitigate the cost increases.
Last month, IFF's competitor, Swiss-based Givaudan
GIVN.VX, the world's biggest fragrance and flavor maker, said
it was raising prices to help it pass on growing costs of raw
materials such as oil-based chemicals.
IFF, which has been creating flavors and fragrances for
more than 170 years, works with leading global brands to
develop scents and tastes for products that are household
names. It is a leading supplier for Procter & Gamble(PG.N).
It said first-quarter revenue growth was fueled by
double-digit growth in the emerging markets, while strong
demand for health offerings boosted sales growth in developing
Net income was $84.0 million, or $1.03 per share, compared
with $63.8 million, or 80 cents per share, in the year-ago
period. Analysts expected earnings of 94 cents per share,
according to Thomson Reuters I/B/E/S.
Revenue rose 9 percent to $714.3 million. Analysts expected
(Reporting by Ernest Scheyder, additional reporting by Anna
Driver in Houston and Steve James in New York; editing by Dave
Zimmerman, Maureen Bavdek and Gunna Dickson)