Balchem Q2 net earnings up 45 percent

Balchem has achieved record net earnings of US$6.9 million, up 45.4 percent or US$2.1 million.

Net sales reached US$53 million, down 15.8 percent from the US$62.9 million in the second quarter of 2008. The result, however, was equal to the net sales of first quarter 2009.

The Animal Nutrition and Health business, which included industrial choline and derivative product sales, earned US$34.8 million, down 22 percent from the same quarter in 2008 mainly due to a decline of sales into the weak US poultry and dairy industries.

Balchem's North American choline plants registered lower export sales, mainly due to the stronger US dollar and international political factors affecting poultry exports.

The decline of shipments to the US was partially offset by increased volumes of choline products sourced from the company's Italian operation into the European and global poultry markets. This geographic mix lowered consolidated feed grade prices in the quarter.

Sales of industrial derivatives were negatively impacted by softness, mainly caused by the general economic downturn. Sales of specialty animal nutrition and health products, targeted for ruminant production animals and companion animals, decreased 14.5 percent on-year mainly due to the poor dairy market conditions in the US.

Through all of these market activities, earnings from operations for the entire Animal Nutrition and Health segment increased to US$5.3 million from US$2.9 million in the same quarter last year, largely due to the noted strong sales from its Italian operation, and reductions in the cost of raw materials used to manufacture choline and derivatives, in the US and Europe.