Flavors and fragrances creator International Flavors & Fragrances Inc (IFF) reported earnings per share for the third quarter 2005 of $.72 compared to $.44 in the prior year quarter. The 2005 third quarter results include a net tax benefit of $23.3 million ($.24 per share) relating to the Company's intention to repatriate, in 2005, approximately $250 million of dividends from foreign subsidiaries under the provisions of the American Jobs Creation Act of 2004 ("AJCA").
On an as-adjusted basis, excluding the tax impact noted above, 2005 third quarter earnings per share would have been $.48. The 2004 third quarter results include $20.0 million ($12.7 million after tax or $.14 per share) of restructuring and other charges related to the sale of certain European fruit business assets, the closure of the Company's Dijon, France manufacturing facility and other related reorganization activities.
Third quarter 2005 sales totaled $493.1 million, declining 3 percent in comparison to the prior year in both local currency and reported dollars. Fragrance and flavor sales decreased 1 percent and 3 percent, respectively, in both local currency and dollars.
Flavor sales in the 2005 quarter were impacted by the disposition, in the second half of 2004, of the Company's European fruit preparations business. On an as-adjusted basis, excluding $10.6 million in sales attributable to the fruit business from the 2004 third quarter, flavor sales for the current quarter would have increased 2 percent in dollars and 1 percent in local currency. Flavor sales, most notably in North America and Europe, were also unfavorably impacted by lower selling prices for naturals, mainly vanilla.