New York City-based flavors and fragrances major,
International Flavors & Fragrances Inc.
) recently announced plans to shut down the Augusta, Georgia
based Fragrances Ingredients manufacturing facility, by July
The Fragrances Ingredients facility forms a part of the
company's Fragrances Business Unit. In the fourth quarter of
2012, this sub-segment grew approximately 6.0%, year over year,
on a constant currency basis. The closure of the facility is a
strategic move taken by the company in order to implement its
cost reduction measures more effectively, which was a major
driver to the increased segmental margins in the last reported
The fragrance ingredients are used by the company to
manufacture perfumes for its own brand as well as by its
competitors. Approximately 55% of the ingredients produced by the
company are consumed internally and the balance is sold to
IFF has neither assessed the financial impact of the decision
nor has it made public its plans with respect to the workforce
employed in the facility. We expect the company to provide more
details regarding the planned shut down in its next conference
call when it reports its first quarter 2013 results tomorrow,
i.e. May 7, before market opens. The current Zacks Consensus
Estimate for the stock stands at $1.13 per share, with an
expected year-over-year growth rate of 13.2%.
International Flavors & Fragrances currently has a Zacks
Rank #3 (Hold). Other stocks to watch out for in the industry are
Avon Products Inc.
Nu Skin Enterprises Inc.
); each bears a Zacks Rank #2 (Buy).
AVON PRODS INC (AVP): Free Stock Analysis
INTL F & F (IFF): Free Stock Analysis
METHANEX CORP (MEOH): Free Stock Analysis
NU SKIN ENTERP (NUS): Free Stock Analysis
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