For the third quarter ended September 30, 2011, Balchem reported net earnings of $10.8 million, an increase of $2.3 million, or 27%, over the same time in 2010.
Earnings from operations for the entire animal nutrition and health segment increased approximately 21% to a quarterly record of $7.3 million as compared to $6.1 million in 2010, largely due to improved volumes sold. Earnings from operations for the specialty products segment, at $4.7 million, improved 5% from the same quarter in 2010, as the benefits of the increased volumes sold of ethylene oxide were partially offset by continued increases in petro-chemical commodities. Earnings from operations for the food, pharma and nutrition segment increased approximately 27.6% to a quarterly record of $3.2 million, reflecting a favorable product mix and the favorable earnings impact of the company's previously announced decision to sell its calcium product line.
"Persistent escalation of raw material costs continue to be a challenge, but our supply chain efforts to minimize these increases and methodically advise customers about new pricing is working well," said company CEO and President Dino Rossi. "While these activities led to comparative quarter gross margin erosion, we did show sequential quarterly gross margin improvement."
