The unaudited results of Q2 2012 were as follows (in $000)
Record net sales of $79.0 million were achieved for the quarter ended June 30, 2012, as all three of Balchems’ business segments set new quarterly sales records.
This is an increase of 5.8% above the $74.7 million result of the prior year comparative quarter despite the adverse impact of currency translation, which reduced net sales by approximately 2.3%.
Correspondingly, record second quarter net earnings of $10.0 million were achieved, an increase of $0.4 million, or 4.2% as compared with the same period last year.
In this second quarter of 2012, sales of the Food, Pharma & Nutrition segment were a record $11.8 million, which was an 8.1% improvement over the prior year comparable quarter.
The ARC Specialty Products segment also generated record quarterly sales of $12.5 million, an increase of 3.6% from the comparable prior year quarter.
Sales of the Animal Nutrition & Health (“ANH”) segment, including specialties, choline and industrial derivative products, realized a quarterly record $54.8 million, an increase of 5.8%, or $3.0 million from the prior year comparable quarter.
Product mix was significant in these results as ANH specialty ingredients, largely targeted to ruminant production animal markets, realized approximately 36% sales growth, principally from sales of Reashure and our Aminoshure products.
Dairy economics continue to support strong demand for these products despite the increasing challenges of production animal feed/ration prices.
Forecasted higher feed prices in the second half of 2012 are expected to result in lower milk production due to ration changes but should support continued utilization of our products as herd managers will still look to maximize results of production animals.