NEW HAMPTON — Balchem Corp. offset a $10 million drop in sales with cost-cutting, manufacturing efficiencies and new product lines, reporting a record second-quarter profit of $6.9 million.

The company did that without laying off employees, Chairman, President and CEO Dino Rossi said.
“We’re adding, very selectively,” Rossi said.

The company, which employs 335 people, reported $53 million in second-quarter sales, down from $63 million one year earlier. But its profit rose from $4.7 million to $6.9 million.

Here’s what the company did:

* As choline product sales slipped in the U.S., it altered its sales and manufacturing strategies to capitalize on a slight increase in demand overseas.

* It found new uses for its choline products, creating new markets by targeting the bakery, tortilla and preservation markets.

* It carefully watched fluctuations in energy prices and the costs of raw goods, positioning itself to benefit from lower natural gas costs and less-costly petro-chemical raw materials.

“We’ve certainly had our eye on the ball,” Rossi said.

For the first six months of the year, the company logged sales of $106 million, slightly less than the $120 million recorded one year earlier.

“I think that’s a function that a lot of supplement sales in general are off because of the state of the economy,” Rossi said.

In that same six-month period, Balchem’s profit rose from $9.4 million to $13.0 million. The company benefitted from lower costs thanks to its nimble manufacturing operations, which enable the company to produce the same products in the U.S. as it does in Europe, depending on where the demand is.

“We looked to leverage off of those various equivalent producing capabilities and ended up with the lower cost,” Rossi said.