Balchem has revised its outlook for the third quarter, following continued softness in the encapsulated and nutritional products segment, said the firm yesterday.
Sales in the domestic food and animal nutrition sectors continue to be affected by conservative purchasing patterns and delayed new product launches by customers in the United States, according to a Balchem release.
Dino A. Rossi, president and CEO, said: "Weak general economic conditions, together with protracted ordering patterns and lower customer inventory levels in the Encapsulated/Nutritional Products segment, continued beyond our earlier expectations."
The company has reduced production during the quarter, resulting in a negative impact on manufacturing costs, and therefore operating income. Rossi added that this will increase cashflow, positioning the segment for improved results in the fourth quarter.
Earnings for 2003 are expected to be below comparable levels for the previous year. Balchem's other divisions ARC Specialty Products, supplying specialty-packaged chemicals for use in healthcare and other industries, and unencapsulated feed supplements, are expected to see stronger performance.