Balchem Corp. reported record net income of $8.3 million for the second quarter of the year, up from a profit of $6.9 million for the second quarter of 2009, which is in increase of 21.4%.
Net sales totalled $61.5 million, up from $53.0 million in the year-ago quarter (+16%).
Sales increased in all three of the company's business segments: food, pharmaceutical and nutrition; animal nutrition and health; and specialty products.
Balchem, which is based in New Hampton and has a manufacturing plant in Slate Hill, produces ingredients for the food and animal feed industries.
With all three segments exhibiting strong double digit sales growth for the quarter, sales of the Food, Pharma & Nutrition segment were particularly strong, setting a new quarterly record of $10.6 million, which was a 16.4% improvement over the prior year comparable quarter.
Animal Nutrition & Health (“ANH”), including specialties, choline and industrial derivative product sales, totalled $40.7 million, an increase of 16.8%, or $5.9 million from the prior year comparable quarter.
Global feed grade choline product sales were essentially flat with the prior year quarter; however, its North American choline sales improved, as did the North American broiler meat production market, which improved 2.6% over the prior year quarter and is expected to be up 2-3% in the second half of 2010.
Exports of liquid and dry choline from the North American plants declined in the quarter as rising raw material costs, in combination with global competition, resulted in declining to bid on certain international business in the quarter.
Sales statistics in this segment were also negatively impacted by approximately 2.0% due to correlated foreign currency fluctuation associated with the Italian operation.
The ANH specialty ingredients, largely targeted to the ruminant and companion animal markets, realized 11.4% sales growth from the prior year comparable quarter, as some regional improvement in dairy economics supported greater demand for these products, particularly with strong sales of Aminoshure-L®, Balchem’s rumen protected lysine.
Sales of industrial grade products realized significant growth from the prior year comparable quarter and improved approximately 29.5% on a sequential basis, as the company saw continued improvement in sales for various industrial applications, predominantly in North America, but also in Europe.
Earnings from operations for the entire ANH segment increased to $6.0 million as compared to $5.3 million in the prior year comparable quarter.
This quarterly earnings result reflects favourable operating variances due to the overall 14% volume improvement in sales.