Limited Brands Inc. (LTD)

[LisaMarie]

Fragrance: Bath and Body Works & Victoria's Secret

AP
Ahead of the Bell: JPMorgan downgrades International Flavors
Thursday April 17, 9:11 am ET
JPMorgan downgrades International Flavors & Fragrances, citing downturn in fragrance market

NEW YORK (AP) -- A JPMorgan analyst downgraded shares of International Flavors & Fragrances, saying slower sales in its fragrance segment and higher food costs could weigh on earnings. Jeffrey J. Zekauskas lowered New York-based International Flavors to "Underweight" from "Neutral" in a note to investors Thursday morning. Shares were unchanged in premarket trading Thursday at $46.10.

Zekauskas noted the company reported slower fragrance sales in the fourth quarter of 2007, adding that similar downturns were reported in March at Bath and Body Works and Victoria's Secret -- both owned by Limited Brands Inc. -- and France's L'Oreal SA, all of which carry International Flavors products.

The analyst added that the company's food segment is likely in better shape but bears watching because of rising food costs. Zekauskas lowered his per-share profit estimate to 72 cents from 75 cents for the first quarter. Analysts polled by Thomson Financial expect first-quarter earnings of 75 cents per share, on average.

International Flavors (NYSE: IFF)is scheduled to report first-quarter results May http://finance.yahoo.com/q?s=IFF