International Flavors & Fragrances Inc.
) with an aim to further strengthen its footholds in Greater Asia,
announced opening of a new facility in Jurong, Singapore.
INTL F & F (IFF): Free Stock Analysis
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This 12,000 square meter, state-of-the-art facility will be
replacing the company's existing facilities in the region.
Production capacity is anticipated to be around 20,000 metric tons
The facility is part of the company's $100 million investment plan
in Greater Asia. The facility will be producing liquid flavors and
fragrances for its large customer base in the region. The facility
is environment friendly and has been designed to have minimal solid
We believe that reviving global economy and better consumer
spending is a positive driver for the flavors and fragrances
industry. New business wins, substantial geographical
diversifications, wide product lines, continuous accomplishments in
research and intense consumer insight will act as growth drivers
for IFF. Over the long term, the company targets to achieve a 4%-6%
increase in local currency sales, about 7%-9% operating profit
growth and over 10% earnings per share growth.
Also, capital spending over the years is expected to concentrate
more on seizing opportunities in the emerging markets. Besides,
bolt-on acquisitions will be given preferences to gain access to
desirable customers, regions, or technologies.
The current Zacks Consensus Estimate for the third quarter of 2012
is $1.07, reflecting a year-over-year growth of 7.0%. Estimates for
2012 and 2013 are $3.99 and $4.32, representing annual growth of
6.6% and 8.3%, respectively.
We currently maintain a Neutral recommendation on International
Flavors & Fragrances. The stock also bears a Zacks #3 Rank,
implying a long-term Hold rating.