Innospec Reports Fourth Quarter and Full Year 2025 Financial Results
Rhea-AI Summary
Innospec (NASDAQ: IOSP) reported fourth-quarter and full-year 2025 results with mixed operational trends and solid cash generation. Q4 revenue was $455.6 million (down 2% YoY) and GAAP EPS was $1.91; adjusted Q4 EPS was $1.50. Full-year revenue was $1.78 billion (down 4%) with adjusted EPS $5.27 and adjusted EBITDA $203.0 million (down 10% YoY). The company ended 2025 with net cash of $292.5 million and generated $61.4 million of operating cash in Q4. Fuel Specialties showed a 7% operating income gain; Performance Chemicals and Oilfield Services showed sequential improvement but weaker full-year performance.
AI-generated analysis. Not financial advice.
Positive
- Q4 operating cash of $61.4 million generated from operations
- Net cash position of $292.5 million at December 31, 2025
- Fuel Specialties operating income +7% year-over-year in Q4
- Adjusted non-GAAP EPS of $1.50 in Q4 and $5.27 for full year 2025
Negative
- Full-year revenue down 4% to $1.78 billion
- Adjusted EBITDA declined 10% to $203.0 million for 2025
- Oilfield Services revenues down 19% for 2025 and operating income down 40%
- Performance Chemicals full-year operating income decreased 26% to $61.0 million
News Market Reaction – IOSP
On the day this news was published, IOSP gained 0.26%, reflecting a mild positive market reaction. Argus tracked a peak move of +2.1% during that session. Our momentum scanner triggered 3 alerts that day, indicating moderate trading interest and price volatility. This price movement added approximately $6M to the company's valuation, bringing the market cap to $2.28B at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
IOSP’s modest -0.35% move occurred with mixed, mostly small moves in close peers (e.g., ASH -1.29%, CC +2.58%). Momentum scanner only flagged one specialty peer, PRM, down ~1.93%, suggesting today’s action was company-specific rather than a broad specialty chemicals move.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Nov 04 | Q3 2025 earnings | Negative | -1.9% | Flat revenue with lower adjusted EPS and sizable special charges. |
| Aug 05 | Q2 2025 earnings | Neutral | -3.1% | Slight revenue growth offset by profit pressure and mixed segment trends. |
| Feb 18 | Q4/FY 2024 earnings | Neutral | -7.0% | Large pension-related loss but solid adjusted EBITDA and strong net cash. |
| Nov 05 | Q3 2024 earnings | Positive | +12.4% | Segment margin expansion, strong cash flow, higher dividend and net cash. |
| Aug 06 | Q2 2024 earnings | Positive | -10.3% | Adjusted EPS growth and strong segment performance despite lower revenue. |
Across the last five earnings releases, IOSP often saw volatile and generally negative next‑day reactions (average move -1.97%), even when underlying cash generation and net cash remained strong, with one notable upside outlier in Q3 2024.
Recent earnings history shows IOSP navigating mixed top-line trends while emphasizing margins and cash. Q2 and Q3 2024 featured revenue declines but resilient or rising adjusted EPS and strong net cash, yet reactions ranged from -10.27% to +12.39%. Full-year 2024 results were impacted by a UK pension settlement, though adjusted EBITDA improved. Through 2025, revenue stayed roughly flat with varying segment performance and continued focus on Performance Chemicals and Oilfield Services margins. Today’s Q4/FY 2025 report extends that pattern of solid net cash, non-GAAP focus, and mixed segment dynamics.
Historical Comparison
Over the last five earnings reports, IOSP’s average next-day move was -1.97%, with reactions often skewing negative despite strong net cash and margin initiatives, making any muted move to this Q4/FY 2025 release consistent with past behavior.
Earnings releases since 2024 trace a story of modest revenue shifts, heavy one-time items (notably the UK pension settlement), and ongoing efforts to lift margins in Performance Chemicals and Oilfield Services while Fuel Specialties provides steadier growth and supports a strong net cash profile.
Market Pulse Summary
This announcement details Q4 and full-year 2025 results featuring modest revenue declines but stronger GAAP earnings and solid net cash of $292.5 million. Fuel Specialties again provided stable growth and margins, while Performance Chemicals and Oilfield Services remained more volatile. Compared with prior earnings, the release continues a theme of margin focus and non-GAAP metrics. Investors may watch segment operating income trends, cash generation after capex, and how management deploys the balance sheet for M&A, dividends, and buybacks.
Key Terms
adjusted ebitda financial
non-gaap financial measures financial
diluted eps financial
contingent consideration financial
impairment of intangible assets financial
restructuring charge financial
capital expenditures financial
net cash financial
AI-generated analysis. Not financial advice.
Continued strength in Fuel Specialties with 7 percent operating income growth and improved margins
Sequentially improving results in Performance Chemicals and Oilfield Services
Excellent quarterly cash flow of
GAAP EPS
ENGLEWOOD, Colo., Feb. 17, 2026 (GLOBE NEWSWIRE) -- Innospec Inc. (NASDAQ: IOSP) today announced its financial results for the fourth quarter and full year ended December 31, 2025.
Total revenues for the fourth quarter were
Results for this quarter include some special items, which are summarized in the table below. Excluding these items, adjusted non-GAAP EPS in the fourth quarter was
Innospec generated cash from operating activities of
Adjusted EBITDA, income before income taxes excluding special items, net income excluding special items, and related per-share amounts, together with net cash, are non-GAAP financial measures that are defined and reconciled with GAAP results herein and in the schedules below.
| Quarter ended December 31, 2025 | Quarter ended December 31, 2024 | |||||||||||||||||
| (in millions, except share and per share data) | Income before income taxes | Net income | Per diluted share | (Loss)/ income before income taxes | Net (loss)/ income | Per diluted share | ||||||||||||
| Reported GAAP amounts | $ | 50.3 | $ | 47.4 | $ | 1.91 | $ | (102.6 | ) | $ | (70.4 | ) | $ | (2.80 | ) | |||
| Impact of internal reorganizations | - | (9.5 | ) | (0.38 | ) | 0.6 | 1.1 | 0.04 | ||||||||||
| Foreign currency exchange gains | (2.7 | ) | (2.0 | ) | (0.08 | ) | (8.0 | ) | (5.7 | ) | (0.23 | ) | ||||||
| Amortization of acquired intangible assets | 1.0 | 0.8 | 0.03 | 2.3 | 1.7 | 0.07 | ||||||||||||
| Adjustment to fair value of contingent consideration | 0.3 | 0.3 | 0.01 | 1.3 | 2.0 | 0.08 | ||||||||||||
| Legacy costs of closed operations | 0.3 | 0.2 | 0.01 | 1.4 | 1.1 | 0.04 | ||||||||||||
| Settlement charge on UK pension scheme buy-out | - | - | - | 155.6 | 116.7 | 4.65 | ||||||||||||
| Adjustment of income tax provisions | - | - | - | - | (11.0 | ) | (0.44 | ) | ||||||||||
| (1.1 | ) | (10.2 | ) | (0.41 | ) | 153.2 | 105.9 | 4.21 | ||||||||||
| Adjusted non-GAAP amounts | $ | 49.2 | $ | 37.2 | $ | 1.50 | $ | 50.6 | $ | 35.5 | $ | 1.41 | ||||||
For the full year, total revenues of
Results for the full year include some special items, which are summarized in the table below. Excluding these items, adjusted non-GAAP EPS for the full year was
| Year ended December 31, 2025 | Year ended December 31, 2024 | |||||||||||||||||
| (in millions, except share and per share data) | Income before income taxes | Net income | Diluted EPS | Income before income taxes | Net income | Diluted EPS | ||||||||||||
| Reported GAAP amounts | $ | 138.1 | $ | 116.6 | $ | 4.67 | $ | 41.2 | $ | 35.6 | $ | 1.42 | ||||||
| Impairment of property, plant and equipment | 22.9 | 18.1 | 0.72 | - | - | - | ||||||||||||
| Adjustment to fair value of contingent consideration | (15.9 | ) | (15.9 | ) | (0.64 | ) | 3.4 | 3.4 | 0.14 | |||||||||
| Impairment of intangible assets | 19.1 | 14.0 | 0.56 | - | - | - | ||||||||||||
| Impact of internal reorganizations | - | (9.5 | ) | (0.38 | ) | 0.6 | 1.1 | 0.04 | ||||||||||
| Amortization of acquired intangible assets | 7.3 | 5.5 | 0.22 | 11.3 | 8.6 | 0.34 | ||||||||||||
| Legacy costs of closed operations | 5.1 | 3.8 | 0.15 | 4.0 | 3.0 | 0.12 | ||||||||||||
| Foreign currency exchange gains | (1.6 | ) | (1.2 | ) | (0.05 | ) | (4.9 | ) | (3.6 | ) | (0.14 | ) | ||||||
| Restructuring charge | 0.9 | 0.6 | 0.02 | - | - | - | ||||||||||||
| Settlement charge on UK pension scheme buyout | - | - | - | 155.6 | 116.7 | 4.65 | ||||||||||||
| Adjustment of income tax provisions | - | - | - | - | (11.4 | ) | (0.45 | ) | ||||||||||
| Recovery of historical pension costs | - | - | - | (8.4 | ) | (6.3 | ) | (0.25 | ) | |||||||||
| Settlement of historical tax audits | - | - | - | - | 1.3 | 0.05 | ||||||||||||
| 37.8 | 15.4 | 0.60 | 161.6 | 112.8 | 4.50 | |||||||||||||
| Adjusted non-GAAP amounts | $ | 175.9 | $ | 132.0 | $ | 5.27 | $ | 202.8 | $ | 148.4 | $ | 5.92 | ||||||
Commenting on the fourth quarter results, Patrick S. Williams, President and Chief Executive Officer, said,
“This was a good quarter for Innospec with continued strong operating income growth and margin expansion in Fuel Specialties combined with improving results in Performance Chemicals and Oilfield Services.
Performance Chemicals delivered strong sequential operating income growth as our margin improvement actions began to take effect together with lower overheads driven by a reduction in personnel related costs. We continue to execute multiple topline, cost and other margin opportunities identified in the business. In addition, we are accelerating our strong pipeline of new products across all our end markets. We expect these combined efforts to drive further improvement in 2026.
Fuel Specialties had another strong quarter with sales growth and margin improvement, driving a seven percent increase in operating income over the prior year. As expected, the business has continued to deliver consistently strong results.
Oilfield Services operating income and margins improved this quarter on a richer sales mix and lower overheads due to lower personnel related costs while sales were down on reduced activity in US completions and in the Middle East. We remain focused on delivering operating income growth in 2026 as Middle East activity returns, sales from our recent DRA expansion takes effect, and our focus on margin improvement continues. Our outlook does not assume any resumption of Mexico sales in 2026.”
Revenues in Performance Chemicals of
Revenues in Fuel Specialties of
Revenues in Oilfield Services of
Corporate costs of
For the quarter, cash provided by operating activities after capital expenditures was
Mr. Williams concluded,
“Entering 2026, our focus remains unchanged. We will continue to prioritize margin and operating income improvement in Performance Chemicals and Oilfield Services. In both segments, we have margin enhancement, new technology commercialization and other opportunities which we expect to drive growth in 2026. In addition, we expect Fuel Specialties to continue to deliver consistent results.
Operating cash generation was excellent in the quarter, and our net cash position closed at over
Use of Non-GAAP Financial Measures
The information presented in this press release includes financial measures that are not calculated or presented in accordance with Generally Accepted Accounting Principles in the United States (GAAP). These non-GAAP financial measures comprise adjusted EBITDA, income before income taxes excluding special items, net income excluding special items and related per share amounts together with net cash. Adjusted EBITDA is net income/(loss) per our consolidated financial statements adjusted for the exclusion of interest income, net, income taxes, depreciation and amortization, pension scheme settlement charge, recovery of historical pension costs, foreign currency exchange gains, legacy costs of closed operations, adjustment to fair value of contingent consideration, restructuring charge, impairment of property, plant and equipment and impairment of intangible assets. Income before income taxes, net income and diluted EPS, excluding special items, per our consolidated financial statements are adjusted for the exclusion of impairment of property, plant and equipment, adjustment to fair value of contingent consideration, impairment of intangible assets, impact of internal reorganizations, amortization of acquired intangible assets, legacy costs of closed operations, foreign currency exchange gains, restructuring charge, settlement charge on UK pension scheme buyout, adjustment of income tax provisions, recovery of historical pension costs and settlement of historical tax audits. Net cash is cash and cash equivalents less total debt. Reconciliations of these non-GAAP financial measures to their most directly comparable GAAP financial measures are provided herein and in the schedules below.
The Company believes that such non-GAAP financial measures provide useful information to investors and may assist them in evaluating the Company’s underlying performance and identifying operating trends. In addition, these non-GAAP measures address questions the Company routinely receives from analysts and investors and the Company has determined that it is appropriate to make this data available to all investors. While the Company believes that such measures are useful in evaluating the Company’s performance, investors should not consider them to be a substitute for financial measures prepared in accordance with GAAP. In addition, these non-GAAP financial measures may differ from similarly titled non-GAAP financial measures used by other companies and do not provide a comparable view of the Company’s performance relative to other companies in similar industries. Management uses adjusted EPS (the most directly comparable GAAP financial measure for which is GAAP EPS) and net income excluding special items and adjusted EBITDA (the most directly comparable GAAP financial measure for which is GAAP net income/(loss)) to allocate resources and evaluate the performance of the Company’s operations and has provided a reconciliation of adjusted EBITDA and net income excluding special items, and related per share amounts, to GAAP net income/(loss) herein and in the schedules below.
About Innospec Inc.
Innospec Inc. is an international specialty chemicals company with approximately 2,450 employees in 22 countries. Innospec manufactures and supplies a wide range of specialty chemicals to markets in the Americas, Europe, the Middle East, Africa and Asia-Pacific. The Performance Chemicals business creates innovative technology-based solutions for our customers in the Personal Care, Home Care, Agrochemical, Mining and Industrial markets. The Fuel Specialties business specializes in manufacturing and supplying fuel additives that improve fuel efficiency, boost engine performance and reduce harmful emissions. Oilfield Services provides specialty chemicals to all elements of the oil and gas exploration and production industry.
Forward-Looking Statements
This press release contains certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts included or incorporated herein may constitute forward-looking statements. Such forward-looking statements include statements (covered by words like “expects,” “estimates,” “anticipates,” “may,” “could,” “believes,” “feels,” “plans,” “intends,” “outlook” or similar words or expressions, for example) which relate to earnings, growth potential, operating performance, events or developments that we expect or anticipate will or may occur in the future. Although forward-looking statements are believed by management to be reasonable when made, they are subject to certain risks, uncertainties and assumptions, and our actual performance or results may differ materially from these forward-looking statements. Additional information regarding risks, uncertainties and assumptions relating to Innospec and affecting our business operations and prospects are described in Innospec’s Annual Report on Form 10-K for the year ended December 31, 2024, Innospec’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2025 and other reports filed with the U.S. Securities and Exchange Commission. You are urged to review our discussion of risks and uncertainties that could cause actual results to differ from forward-looking statements under the heading "Risk Factors” in such reports. Innospec undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Contacts:
Corbin Barnes
Innospec Inc.
+44-151-355-3611
corbin.barnes@innospecinc.com
| INNOSPEC INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
Schedule 1
| (in millions, except share and per share data) | Three Months Ended December 31 | Twelve Months Ended December 31 | |||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||
| Net sales | $ | 455.6 | $ | 466.8 | $ | 1,778.0 | $ | 1,845.4 | |||||
| Cost of goods sold | (328.2 | ) | (330.6 | ) | (1,285.6 | ) | (1,302.5 | ) | |||||
| Gross profit | 127.4 | 136.2 | 492.4 | 542.9 | |||||||||
| Operating expenses: | |||||||||||||
| Selling, general and administrative | (69.3 | ) | (78.9 | ) | (285.1 | ) | (305.3 | ) | |||||
| Research and development | (11.0 | ) | (14.9 | ) | (51.0 | ) | (56.5 | ) | |||||
| Adjustment to fair value of contingent consideration | (0.3 | ) | (1.3 | ) | 15.9 | (3.4 | ) | ||||||
| Restructuring charge | - | - | (0.9 | ) | - | ||||||||
| Impairment of property, plant and equipment | - | - | (22.9 | ) | - | ||||||||
| Impairment of intangible assets | - | - | (19.1 | ) | - | ||||||||
| Profit on disposal of property, plant and equipment | - | - | 0.2 | 0.2 | |||||||||
| Total operating expenses | (80.6 | ) | (95.1 | ) | (362.9 | ) | (365.0 | ) | |||||
| Operating income | 46.8 | 41.1 | 129.5 | 177.9 | |||||||||
| Other income/(expense), net | 1.6 | 9.5 | (0.6 | ) | 9.6 | ||||||||
| Pension scheme settlement charge | - | (155.6 | ) | - | (155.6 | ) | |||||||
| Interest income, net | 1.9 | 2.4 | 9.2 | 9.3 | |||||||||
| Income/(loss) before income taxes | 50.3 | (102.6 | ) | 138.1 | 41.2 | ||||||||
| Income taxes | (2.9 | ) | 32.2 | (21.5 | ) | (5.6 | ) | ||||||
| Net income/(loss) | $ | 47.4 | $ | (70.4 | ) | $ | 116.6 | $ | 35.6 | ||||
| Earnings/(loss) per share: | |||||||||||||
| Basic | $ | 1.91 | $ | (2.82 | ) | $ | 4.69 | $ | 1.43 | ||||
| Diluted | $ | 1.91 | $ | (2.80 | ) | $ | 4.67 | $ | 1.42 | ||||
| Weighted average shares outstanding (in thousands): | |||||||||||||
| Basic | 24,778 | 24,949 | 24,880 | 24,932 | |||||||||
| Diluted | 24,837 | 25,115 | 24,993 | 25,119 | |||||||||
| INNOSPEC INC. AND SUBSIDIARIES |
Schedule 2A
| SEGMENTAL ANALYSIS OF RESULTS | Three Months Ended December 31 | Twelve Months Ended December 31 | ||||||||||
| (in millions) | 2025 | 2024 | 2025 | 2024 | ||||||||
| Net sales: | ||||||||||||
| Performance Chemicals | $ | 168.4 | $ | 169.2 | $ | 681.4 | $ | 653.7 | ||||
| Fuel Specialties | 194.1 | 191.8 | 701.5 | 701.1 | ||||||||
| Oilfield Services | 93.1 | 105.8 | 395.1 | 490.6 | ||||||||
| 455.6 | 466.8 | 1,778.0 | 1,845.4 | |||||||||
| Gross profit: | ||||||||||||
| Performance Chemicals | 30.4 | 38.4 | 122.0 | 148.4 | ||||||||
| Fuel Specialties | 67.3 | 66.0 | 252.2 | 239.9 | ||||||||
| Oilfield Services | 29.7 | 31.8 | 118.2 | 154.6 | ||||||||
| 127.4 | 136.2 | 492.4 | 542.9 | |||||||||
| Operating income: | ||||||||||||
| Performance Chemicals | 17.7 | 20.6 | 61.0 | 82.9 | ||||||||
| Fuel Specialties | 37.2 | 34.9 | 144.8 | 129.6 | ||||||||
| Oilfield Services | 8.2 | 7.5 | 23.3 | 38.8 | ||||||||
| Corporate costs | (16.0 | ) | (20.6 | ) | (72.8 | ) | (70.2 | ) | ||||
| 47.1 | 42.4 | 156.3 | 181.1 | |||||||||
| Adjustment to fair value of contingent consideration | (0.3 | ) | (1.3 | ) | 15.9 | (3.4 | ) | |||||
| Restructuring charge | - | - | (0.9 | ) | - | |||||||
| Impairment of property, plant and equipment | - | - | (22.9 | ) | - | |||||||
| Impairment of intangible assets | - | - | (19.1 | ) | - | |||||||
| Profit on disposal of property, plant and equipment | - | - | 0.2 | 0.2 | ||||||||
| Total operating income | $ | 46.8 | $ | 41.1 | $ | 129.5 | $ | 177.9 | ||||
Schedule 2B
| NON-GAAP MEASURES | Three Months Ended December 31 | Twelve Months Ended December 31 | ||||||||||
| (in millions) | 2025 | 2024 | 2025 | 2024 | ||||||||
| Net income/(loss) | $ | 47.4 | $ | (70.4 | ) | $ | 116.6 | $ | 35.6 | |||
| Interest income, net | (1.9 | ) | (2.4 | ) | (9.2 | ) | (9.3 | ) | ||||
| Income taxes | 2.9 | (32.2 | ) | 21.5 | 5.6 | |||||||
| Depreciation and amortization | 9.4 | 11.3 | 43.6 | 43.6 | ||||||||
| Pension scheme settlement charge | - | 155.6 | - | 155.6 | ||||||||
| Recovery of historical pension costs | - | - | - | (8.4 | ) | |||||||
| Foreign currency exchange gains | (2.7 | ) | (8.0 | ) | (1.6 | ) | (4.9 | ) | ||||
| Legacy costs of closed operations | 0.3 | 1.4 | 5.1 | 4.0 | ||||||||
| Adjustment to fair value of contingent consideration | 0.3 | 1.3 | (15.9 | ) | 3.4 | |||||||
| Restructuring charge | - | - | 0.9 | - | ||||||||
| Impairment of property, plant and equipment | - | - | 22.9 | - | ||||||||
| Impairment of intangible assets | - | - | 19.1 | - | ||||||||
| Adjusted EBITDA | $ | 55.7 | $ | 56.6 | $ | 203.0 | $ | 225.2 | ||||
Schedule 3
| INNOSPEC INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS |
| (in millions) | December 31, 2025 | December 31, 2024 | ||
| Assets | ||||
| Current assets: | ||||
| Cash and cash equivalents | $ | 292.5 | $ | 289.2 |
| Trade and other accounts receivable | 342.3 | 341.7 | ||
| Inventories | 329.3 | 301.0 | ||
| Prepaid expenses | 20.1 | 21.0 | ||
| Prepaid income taxes | 13.1 | 3.1 | ||
| Other current assets | 7.3 | 0.6 | ||
| Total current assets | 1,004.6 | 956.6 | ||
| Net property, plant and equipment | 286.1 | 269.7 | ||
| Operating lease right-of-use assets | 52.7 | 44.8 | ||
| Goodwill | 399.0 | 382.5 | ||
| Other intangible assets | 67.7 | 65.4 | ||
| Deferred tax assets | 13.6 | 9.4 | ||
| Pension asset | - | 2.4 | ||
| Other non-current assets | 8.7 | 3.9 | ||
| Total assets | $ | 1,832.4 | $ | 1,734.7 |
| Liabilities and Stockholders’ Equity | ||||
| Current liabilities: | ||||
| Accounts payable | $ | 174.7 | $ | 163.8 |
| Accrued liabilities | 152.3 | 169.1 | ||
| Current portion of operating lease liabilities | 15.9 | 13.9 | ||
| Current portion of plant closure provisions | 4.9 | 5.0 | ||
| Current portion of acquisition-related contingent consideration | 7.0 | - | ||
| Accrued income taxes | 5.3 | 19.6 | ||
| Total current liabilities | 360.1 | 371.4 | ||
| Operating lease liabilities, net of current portion | 36.8 | 31.0 | ||
| Plant closure provisions, net of current portion | 60.2 | 55.3 | ||
| Deferred tax liabilities | 19.1 | 23.5 | ||
| Pension liabilities and post-employment benefits | 13.2 | 13.1 | ||
| Acquisition-related contingent consideration, net of current portion | 1.3 | 20.1 | ||
| Other non-current liabilities | 8.8 | 4.2 | ||
| Equity | 1,332.9 | 1,216.1 | ||
| Total liabilities and equity | $ | 1,832.4 | $ | 1,734.7 |
Schedule 4
| INNOSPEC INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
| Twelve Months Ended December 31 | ||||||
| (in millions) | 2025 | 2024 | ||||
| Cash Flows from Operating Activities | ||||||
| Net income | $ | 116.6 | $ | 35.6 | ||
| Adjustments to reconcile net income to cash provided by operating activities: | ||||||
| Depreciation and amortization | 43.6 | 43.5 | ||||
| Adjustment to fair value of contingent consideration | (15.9 | ) | 3.4 | |||
| Impairment of property, plant and equipment | 22.9 | - | ||||
| Impairment of intangible assets | 19.1 | - | ||||
| Deferred taxes | (10.2 | ) | (39.3 | ) | ||
| Profit on disposal of property, plant and equipment | (0.2 | ) | (0.2 | ) | ||
| Non-cash movements on defined benefit pension plans | 2.7 | 151.9 | ||||
| Stock option compensation | 8.1 | 8.5 | ||||
| Changes in working capital | (16.0 | ) | (14.8 | ) | ||
| Movements in plant closure provisions | (1.9 | ) | 0.9 | |||
| Movements in income taxes | (21.8 | ) | 6.3 | |||
| Movements in unrecognized tax benefits | - | (14.8 | ) | |||
| Movements in other assets and liabilities | (8.7 | ) | 3.5 | |||
| Net cash provided by operating activities | 138.3 | 184.5 | ||||
| Cash Flows from Investing Activities | ||||||
| Capital expenditures | (50.3 | ) | (41.4 | ) | ||
| Proceeds on disposal of property, plant and equipment | 1.1 | 0.5 | ||||
| Business combinations, net of cash acquired | (0.7 | ) | (0.2 | ) | ||
| Internally developed software | (25.2 | ) | (20.9 | ) | ||
| Net cash used in investing activities | (75.1 | ) | (62.0 | ) | ||
| Cash Flows from Financing Activities | ||||||
| Non-controlling interest | 1.9 | 2.4 | ||||
| Refinancing costs | - | (0.3 | ) | |||
| Dividend paid | (42.4 | ) | (38.8 | ) | ||
| Issue of treasury stock | 0.5 | 2.1 | ||||
| Repurchase of common stock | (23.9 | ) | (0.7 | ) | ||
| Net cash used in financing activities | (63.9 | ) | (35.3 | ) | ||
| Effect of foreign currency exchange rate changes on cash | 4.0 | (1.7 | ) | |||
| Net change in cash and cash equivalents | 3.3 | 85.5 | ||||
| Cash and cash equivalents at beginning of period | 289.2 | 203.7 | ||||
| Cash and cash equivalents at end of period | $ | 292.5 | $ | 289.2 | ||
