Strong fourth quarter boosts full-year earnings at Ingredion

by Eric Schroeder
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WESTCHESTER, ILL. — Strong sales helped drive a 3% increase in full-year earnings at Ingredion, Inc. Net income in the year ended Dec. 31, 2012, totaled $427.5 million, equal to $5.59 per share on the common stock, up from $415.7 million, or $5.44 per share, in fiscal 2011.

Net sales during fiscal 2012 totaled $6,532.1 million, up 5% from $6,219.4 million.

Ingredion said full-year results benefited from a strong fourth quarter in which net income rose 17% to $111.6 million, or $1.45 per share, from $95.1 million, or $1.25 per share, in the same period a year ago. Net sales in the fourth quarter were $1,643.9 million, up 6% from $1,547.6 million.

“We delivered a strong fourth quarter and full year in spite of ongoing macroeconomic volatility,” said Ilene Gordon, chairman, president and chief executive officer. “Underlying this performance, we saw price increases to cover higher raw material costs and foreign exchange headwinds, volume improvement, and operating efficiencies. We continue to see the strength of our business model, even in challenging times. Our ability to manage risk while capitalizing on growth markets and trends provides us with an attractive position.

“Looking ahead, 2013 poses its own unique challenges. However, we believe that we are positioned to show further growth as we execute our strategic blueprint. We continue to demonstrate the ability to realize appropriate pricing to cover higher input cost while our growth opportunities in emerging markets and mix improvement strategy remain intact.”

Operating income in the company’s North America segment rose 27% in fiscal 2012 to $407.6 million from $322.2 million in fiscal 2011. Net sales increased 11% to $3,741.7 million from $3,355.9 million.

In South America in the full year, operating income was $198.4 million, down 2% from $202.6 million in fiscal 2011. Net sales also were lower, falling 7% to $1,461.7 million from $1,569.6 million.

Operating income in Asia Pacific climbed 20% to $94.7 million from $79.2 million on a 7% gain in sales to $815.8 million from $763.9 million.

In Europe, Middle East, Africa, operating income was $78.5 million, down 6% from $83.9 million a year ago. Net sales totaled $512.9 million, down 3% from $530 million in fiscal 2011.

Ingredion said it expects earnings-per-share guidance for 2013 of between $5.60 to $6, and capital expenditures of between $350 million and $400 million.
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