Balchem Releases 2Q04 Results

NEW HAMPTON, N.Y.—Balchem Corp. (AMSE:BCP) announced all three segments of the company reported improved sales and earnings for the second quarter ended June 30, 2004 (2Q04). Record net sales of $16.4 million were posted for 2Q04, an increase of 10.7 percent from the $14.9 million recorded for the same period the previous year (2Q03). Net earnings for 2Q04 were $2.0 million, an increase of 18.3 percent over 2Q03, while diluted net earnings increased 14.4 percent to $0.39 per share for 2Q04 versus $0.34 per share for 2Q03.

Consolidated gross profit for 2Q04 was $6.0 million compared to $5.5 million for 2Q03 due to the increase in sales volumes.

Dino Rossi, president and chief executive officer, said, “Strength in the ARC Specialty Products and BCP Ingredients Unencapsulated Feed Supplements segments should continue. Sales in our Encapsulated/Nutritional Products segment increased 12.9 percent sequentially from the quarter ending March 31, 2004, and we continue to see signs of volume improvement in the human food and nutrition market as well as animal nutrition. This segment should continue to improve through 2004. We have also added additional personnel talent to this segment in the marketing, sales and application R&D areas to improve our ability to serve our markets and exploit our technology.

Based on the foregoing, we expect modest consolidated sales and earnings growth for the balance of 2004 over the first six months of this year, and double digit growth in earnings for the balance of 2004 over 2003 second half results.”

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