Balchem 3Q04 Results Up

NEW HAMPTON, N.Y.—Balchem Corp. (AMSE:BCP) announced financial results for the third quarter of fiscal 2004 ended Sept. 30 (3Q04).

Net sales for the quarter reached $17.4 million, a 9.9 percent increase over net sales of $15.8 million for the same quarter the previous year (3Q03), and the first time the company has exceeded sales of $17 million in a quarter. Net earnings for 3Q04 were $2.2 million, an increase of $1.3 million and 149 percent compared to net earnings for 3Q03. According to the company, these results are largely attributable to profitable improvement in its Encapsulated/Nutritional Product segment.

Also in 3Q04, the company reduced long-term debt from $7 million to $6.5 million and closed the quarter with $17.3 million in cash—an increase of approximately $12.7 million over closing cash levels in 3Q03.

Dino A. Rossi, president and chief executive officer of Balchem, said, “Strength in the ARC Specialty Products and BCP Ingredients Unencapsulated Feed Supplements segments should continue. Our Encapsulated/Nutritional Products segment quarterly sales increased 2 percent sequentially, as we continue to see signs of volume improvement, albeit fluctuating, in the human food and nutrition market.We have responded to food marketplace economic pressures by reengineering products to enable us to reduce price and, in some instances, lowered average selling prices.We are now also beginning to feel the impact of raw material increases that could squeeze our gross margins. Despite these issues, we do expect this segment to continue to improve through 2004. Animal nutrition sales have contributed nicely, as Reashure and Nitroshure sales growth is expected to continue. Based on the foregoing, we expect modest consolidated sales and earnings growth, over this 3Q04 result, to close out the balance of 2004.”