IFF's 1st-qtr net income falls

(Adds details on results, CEO comment, background)

By Euan Rocha

NEW YORK, May 1 (Reuters) - International Flavors & Fragrances Inc (IFF.N: Quote, Profile, Research) on Thursday said its first-quarter profit fell due to restructuring charges and a slowing U.S. economy, which hurt sales of its fragrance products.

The company saw fine fragrance sales in North America decline 30 percent, while functional fragrance sales in the region fell 19 percent.

The fine fragrance business makes perfumes for designer and celebrity brand labels, including Ralph Lauren's Polo Blue, Calvin Klein's Eternity and Estee Lauder's Intuition. Its functional fragrances are used in detergents and air fresheners.

"The real issue with the fragrance business is at the consumer level and the adjustment of inventory in the chain," said Chief Executive Robert Amen, in an interview with Reuters.

"I don't believe fine fragrance sales were down 30 percent in the quarter. I think they were probably down a single-digit number and all the difference is the fact that fine fragrance packagers stopped ordering, because they had enough inventory," he said.

Net income in the quarter was $55.9 million, or 69 cents a share, compared with a year-ago profit of $62.7 million, or 69 cents a share. The company had fewer shares outstanding in the first quarter of 2008.