INTERNATIONAL FLAVORS & FRAGRANCES INC. $72 - New York symbol IFF

INTERNATIONAL FLAVORS & FRAGRANCES INC. $72 (New York symbol IFF; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 81.6 million; Market cap: $5.9 billion; Price-to-sales ratio: 2.1; Dividend yield: 1.9%; TSINetwork Rating: Above Average; www.iff.com) produces compounds that improve the taste of food and make consumer products smell better.

In 2012, IFF’s sales rose 1.2%, to $2.82 billion from $2.79 billion in 2011. The company gets 75% of its sales from outside the U.S., and the high U.S. dollar is hurting the contribution of these businesses. Without the negative impact of currency exchange rates, sales would have risen 4%. Earnings per share rose 6.4%, to $3.98 from $3.74.

The company continues to expand in fast-growing markets like China, India and Turkey. These investments should push up its earnings to $4.40 a share in 2013, and the stock trades at 16.4 times that estimate. The $1.36 dividend yields 1.9%.

IFF is a buy.

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