Balchem Corp. (BCPC)

Balchem Corporation provides specialty performance ingredients and products for the food, nutritional, feed, pharmaceutical, and medical sterilization industries worldwide. The Encapsulated/Nutritional Products segment provides microencapsulation, chelation, and agglomeration solutions to various applications in food, pharmaceutical, and nutritional ingredients. Applications for these solutions include baked goods, refrigerated and frozen dough systems, processed meats, seasoning blends, confections, nutritional supplements, pharmaceuticals, and animal nutrition. This segment also markets human grade choline nutrient products for wellness applications; offers granulated calcium carbonate products used in over-the-counter and prescription pharmaceuticals for treating osteoporosis, gastric disorders, and calcium deficiencies; and markets REASHURE Choline, NITROSHURETM, and NIASHURETM for animal health. The ARC Specialty Products segment repackages and distributes ethylene oxide to contract sterilizers, medical device manufacturers, and medical gas distributors; sells single use canisters of 100% ethylene oxide for use in medical device sterilization; propylene oxide for using as fumigation in spice treatment and in various chemical synthesis applications, as well as in industrial applications to make paints durable and for manufacturing specialty starches and textile coatings; and methyl chloride for using as a raw material in specialty herbicides, fertilizers, and pharmaceuticals, as well as in malt and wine preservers. The BCP Ingredients segment manufactures and supplies choline chloride to the poultry and swine industries; manufactures certain derivatives of choline chloride for industrial applications; and produces and sells methylamines for the manufacture of choline products. Balchem sells its products through its own sales force, independent distributors, and sales agents. The company was founded in 1967 and is headquartered in New Hampton, New York.

For the nine months ended 30 September 2006, Balchem Corporation's revenues rose 25% to $74.8M. Net income rose 9% to $9.1M. Revenues reflect price increases on ethylene oxide products for medical devices, propylene oxide, higher volume sales in the domestic food and human choline markets. Net income was partially offset increased payroll costs for new hires, higher selling expenses, rise in general & administrative expenses and increased interest expenses.