NEW HAMPTON, N.Y.— Balchem Corp. (NASDAQ:BCPC) reported record quarterly earnings and sales for the first quarter of 2010 (1Q10), ended March 31. The company had record net earnings of $7.0 million, compared to $6.1 million in 1Q09, a 15.3 percent increase. Net sales of $59.9 million were up 13.1 percent compared to the 2009 period, another quarterly record.
By division, the Food, Pharma & Nutrition segment also had record sales of $10.0 million, a 20 percent gain over 1Q09. The domestic and international food sectors were up for the quarter, with double digit growth of encapsulated ingredients for baking, preservation and confectionery. Sales of human choline products were also up by double digits, as the company targeted new food applications and realized a rebound in the dietary supplement markets. The results were offset slightly by slow sales for calcium products and a decline in quarterly sales of the VitaShure® products for nutritional enhancement. Earnings from operations for this segment were a record $2.0 million, as compared to $1.0 million in 1Q09, with gross margin levels improving, largely due to a 9.2 percent improvement in sales volume as well as improved product mix.
Balchem’s other two divisions also saw gains. The Animal Nutrition & Health segment, including specialties, choline and industrial derivative product sales, hit $40.3 million in sales, up 12.2 percent over 1Q09. And the ARC Specialty Products segment had record quarterly sales of $9.7 million, up 9.9 percent from the comparable 2009 quarter.
Dino A. Rossi, chairman, president and CEO of Balchem, commented: “This record first quarter continues to reflect strong performances across all of Balchem’s segments demonstrating the value of our diversified base of business and our ability to leverage cross-business integration opportunities. Our growing global presence helped to off-set softness in certain U.S. markets and while raw material costs had a negative impact on certain segments, we continue to closely monitor all key economic drivers, stay customer solution focused, and take appropriate actions to generate solid operating margins and cash flow.”
He added the company expects positive results in all three segments moving forward in 2010, with “solid improvements” in sales and earnings. Part of this, he said, can be attributed to the company’s move to leverage existing business and research resources to launch new products into each segment.
