Corn Products earnings climb 138%, sales rise 60%

by Eric Schroeder
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WESTCHESTER, ILL. — Corn Products International, Inc. again posted strong financial results, as net income and sales in the period ended Sept. 30 rose 138% and 60%, respectively.

Net income in the third quarter was $87.7 million, equal to $1.15 per share on the common stock. This compared with earnings of $36.9 million, or 49c per share, in the same period of fiscal 2010. The most recent quarterly results included 5c per share of acquisition integration charges and 3c per share of restructuring charges. Last year’s results, meanwhile, included 31c per share of acquisition costs and 2c per share of restructuring charges. Excluding these items, adjusted e.p.s. rose 48% to $1.20 from 81c per share.

Third-quarter net sales increased 60% to $1,627.7 million from $1,019.5 million.

“Corn Products delivered another very good quarter building on our strong first half 2011 performance,” said Ilene Gordon, chairman, president and chief executive officer. “We are pleased with how well our businesses have navigated challenging macroeconomic conditions and have remained focused on successfully executing our plans. Our risk management approach has helped us weather volatile raw material markets and kept us on track to deliver our goals. In each of our regions, we have achieved significant though appropriate price increases to offset higher input costs.

“At the same time, the integration of National Starch continues on-plan and represents a shift in our product mix toward higher-value, more functional ingredients largely for the food industry. Having now owned National Starch for a full year, we continue to be enthusiastic about the combination of the two businesses.”

Operating income in the company’s North America segment rose 16% to $77.3 million from $66.5 million in the third quarter of fiscal 2010. Driving the gain was incremental operating income from the National Starch business. Net sales increased 54% to $889 million from $577.8 million.

In South America in the third quarter, operating income was $47.6 million, up 33% from $35.7 million in the same period a year ago. Net sales also were higher, rising 33% to $411.5 million from $309.6 million.

Operating income in Asia Pacific soared 669% to $20 million from $2.6 million on a 128% gain in sales to $194.8 million from $85.3 million.

In Europe, Middle East, Africa, operating income was $21.5 million, up 117% from $9.9 million a year ago. Net sales totaled $132.4 million, up 183% from $46.8 million in the third quarter of fiscal 2010.

For the nine months ended Sept. 30 net income at Corn Products was $320.7 million, or $4.19 per share, up 174% from $117.2.3 million, or $1.55 per share, in the same period of fiscal 2010. Net sales were $4,671.8 million, up 58% from $2,959.8 million.

Corn Products raised its expectations for earnings-per-share guidance for the full fiscal year to $5.05 to $5.15, up from $4.85 to $5.15. Net sales are still expected to exceed $6 billion in fiscal 2011.

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