WESTCHESTER, ILL. – Higher net corn costs, unfavorable foreign currency translations and softer volumes negatively impacted third-quarter earnings for Corn Products International, Inc. Net income of $53 million, or 70c per diluted common share, for the quarter ended Sept. 30 compared to net income of $88 million, or $1.15 per diluted common share, in the previous year’s third quarter.
Third-quarter net sales fell 10% to $971 million from $1,080 million in the previous year’s third quarter. The three primary contributors were a negative $50 million from foreign currency translations, a negative $38 million from price/mix attributable to co-products, and a negative $26 million from lower volumes.
The estimated change in earnings per share from lower co-product prices (corn oil, feed and meal) was a negative 21c while lower price/margins was a negative 11c, lower other income was a negative 9c and weaker foreign currencies and lower volumes were a negative 6c and 4c, respectively. A lower effective tax rate added 4c, and a change in non-controlling interest and fewer shares outstanding each added 1c.
In North America, net sales fell 9% to $599 million from $660 million in the previous year’s third quarter. Operating income in North America fell 42% to $61 million from $105 million a year ago.