Question-and-Answer Session
Operator
[Operator Instructions] We'll take our first question from Michael Sison with Key Banc.
Michael Sison - Key Banc
I appreciate your positive outlook there, Rob. In terms of the local currency growth heading into '08, you take a look at the Flavors business, it had a great year, do you think that business will continue to perform at that level, high single digits 8%, 9%? Maybe just a quick comment, should we think about Fragrances being sort of negative in the near term and in sort of turning positive by the year end?
Rob Amen
Good questions, Mike. We don't really give specific guidance or forecast for a quarter or for the year, but I certainly expect that our Flavors business to continue to grow substantially and to grow share. There's no point in trying to nail a number on this call, but that chart that Doug shared with you that showed the quarterly progression, they seem to keep getting stronger, four, five, six, seven, eight, nine and 10% local currency growth.
We don't necessarily expect that this is going to continue to accelerate, but they have so many good things going, they’ve won so much business. I think the Flavors business will have another very, very strong year and the first quarter should be in line with that. Fragrance, I think we are going to turn the curve in Fragrance in a more positive way in the first quarter led in part by Fragrance Ingredients. I really am as much of a student of what is going to go onto the markets domestically as anybody it's hard for me to forecast it.
I do expect the US retail market for Fine Fragrance is probably going to be challenging for the time being. That said, the growth in Functional, the growth in Fragrance Ingredients, and overall the growth in LATAM and Asia I think will be very good. I would expect the Fragrance business to be positive in its growth and contribution, but not the blockbuster, exceptional strength that we are seeing in Flavors.
Michael Sison - Key Banc
Then I just wanted to understand the comments on the EPS growth average that you talked about. I guess the way to think about it is that from operations you feel still sort of comfortable with a 10% plus and the ASR adds sort of 1% to 2% net earnings growth for the next two years?
- To read the full transcript on Seeking Alpha, click here »
