CORN PRODUCTS INTERNATIONAL REPORTS STRONG FOURTH QUARTER AND FULL YEAR 2011 RESULTS
(Thomson Reuters ONE) -
* Fourth quarter 2011 reported EPS rose 82 percent from $0.67 to $1.22
* Fourth quarter 2011 adjusted EPS increased 6 percent from $1.05 to $1.11
* Full year 2011 reported EPS was up 142 percent from $2.20 to $5.32
* Full year 2011 adjusted EPS increased 44 percent from $3.24 to $4.68
WESTCHESTER, Ill., February 9, 2012 - Corn Products International, Inc. (NYSE:
CPO), a leading global provider of ingredient solutions to diversified
industries, today reported significant increases in both reported and adjusted
earnings per share.
"Corn Products delivered another very good quarter and closed out an outstanding
year," said Ilene Gordon, chairman, president and chief executive
officer. "Through challenging economic and weather conditions around the world,
our businesses executed against plan, driving meaningful growth while investing
for the future. At the same time, we continued the successful integration of
the National Starch acquisition.
"As we look forward to 2012, we believe that we are well positioned to deliver
further top and bottom line growth while building on our strong geographic
positions and expanding our product portfolio of starch and sweetener
ingredients," Gordon added.
Earnings per share (EPS)
Fourth quarter diluted EPS rose 82 percent to $1.22 compared to $0.67 last
year. The fourth quarter of 2011 included a $0.23 one-time non-cash post-
retirement plan benefit, partially offset by $0.09 of business integration costs
and $0.03 of restructuring charges. The fourth quarter of 2010 included a $0.23
per share charge related to the fair value mark-up of acquired inventory and
$0.15 of acquisition costs. Excluding these items, adjusted EPS rose 6 percent
from $1.05 to $1.11 in the quarter.
Full year 2011 diluted EPS rose 142 percent to $5.32 from $2.20 in the year-ago
period. Full year 2011 EPS included a $0.23 one-time non-cash post-retirement
plan benefit, $0.26 of business integration costs, $0.08 of restructuring
charges, and a $0.75 gain as a result of a payment from the Government of Mexico
pursuant to a settlement in the Company's favor regarding a North American Free
Trade Agreement (NAFTA) dispute. Full year 2010 included $0.34 of acquisition
costs, $0.29 of restructuring charges, $0.23 per share charge related to the
fair value mark-up of acquired inventory, and $0.18 of bridge loan fees and
acquisition-related financing costs. Excluding these items, adjusted EPS rose
44 percent from $3.24 in the year-ago period to $4.68 in 2011.
Financial Highlights
* During 2011, net financing costs were $78 million versus $64 million in the
previous year. The increase is primarily related to debt associated with
the National Starch acquisition and higher working capital.
* The effective tax rate as reported was 34.2 percent for the fourth quarter
of 2011 and 33.4 percent in 2010. For the full year, the effective tax rate
was 28.8 percent and 36.1 percent in 2010.
* At December 31, 2011, total debt and cash and cash equivalents were $1.95
billion and $401 million, respectively, versus $1.77 billion and $302
million, respectively, at December 31, 2010.
* For full year 2011, cash flow from operations was approximately $300 million
compared to $394 million in the year-ago period. The decrease primarily
reflects higher costs of raw materials and increased inventory and accounts
receivable levels related to sales growth.
* During 2011, the Company repurchased approximately one million shares of its
common stock at an average price of $45.13 per share.
* Capital expenditures, net of disposals, were approximately $260 million in
2011 compared to $156 million in 2010.
Business Review
North America
+-------------+---------+------+------+---------+---------+--------+
| | 2010 | FX |Volume|Price/mix| 2011 |% change|
|$ in millions|Net sales|Impact| | |Net sales| |
+-------------+---------+------+------+---------+---------+--------+
|Fourth | 738 | -1 | -7 | 105 | 834 | +13% |
|quarter | | | | | | |
+-------------+---------+------+------+---------+---------+--------+
|Full year | 2,439 | 19 | 476 | 422 | 3,356 | +38% |
+-------------+---------+------+------+---------+---------+--------+
Fourth quarter
* Volume down slightly due to comparison with very strong year-ago fourth
quarter.
* Strong price/mix reflected higher input costs.
* Operating income down 12 percent from $84 million to $74 million, as a
result of higher net corn costs.
Full year
* Stable demand trends.
* Sales growth driven by acquired business volume and higher pricing.
* In 2011, operating income in North America increased 30 percent from $249
million to $322 million. The increase of $73 million is a result of
incremental income from the acquired business, margin improvement from
pricing and cost savings.
South America
+--------------+---------+------+------+---------+---------+--------+
|$ in millions | 2010 | FX |Volume|Price/mix| 2011 |% change|
| |Net sales|Impact| | |Net sales| |
+--------------+---------+------+------+---------+---------+--------+
|Fourth quarter| 367 | -21 | -19 | 73 | 400 | +9% |
+--------------+---------+------+------+---------+---------+--------+
|Full year | 1,241 | 34 | -15 | 310 | 1,570 | +26% |
+--------------+---------+------+------+---------+---------+--------+
Fourth quarter
* Significant price pass-through to cover higher input costs.
* Volumes soft due to slower economic growth and weather.
* Operating income in the quarter was $58 million, up 17 percent from $50
million in the year-ago period. The increase in operating income was driven
by strong price/mix which more than offset foreign exchange headwinds and
soft volumes.
Full year
* Strong price/mix reflected higher input costs.
* In 2011, operating income in South America increased 24 percent from $163
million to $203 million due to positive price/mix.
Asia Pacific
+--------------+---------+------+------+---------+---------+--------+
|$ in millions | 2010 | FX |Volume|Price/mix| 2011 |% change|
| |Net sales|Impact| | |Net sales| |
+--------------+---------+------+------+---------+---------+--------+
|Fourth quarter| 183 | - | -7 | 10 | 186 | +1% |
+--------------+---------+------+------+---------+---------+--------+
|Full year | 433 | 17 | 266 | 48 | 764 | +76% |
+--------------+---------+------+------+---------+---------+--------+
Fourth quarter
* Mixed demand trends across the region.
* Operating income grew 9 percent in the fourth quarter from $16 million to
$18 million due primarily to improved pricing and lower operating expenses.
Full year
* Sales growth driven by the acquired business volume and higher pricing.
* In 2011, operating income in Asia Pacific increased 181 percent from $28
million to $79 million driven by incremental income from the acquired
business.
Europe, Middle East, Africa (EMEA)
+--------------+---------+------+------+---------+---------+--------+
|$ in millions | 2010 | FX |Volume|Price/mix| 2011 |% change|
| |Net sales|Impact| | |Net sales| |
+--------------+---------+------+------+---------+---------+--------+
|Fourth quarter| 119 | -4 | -3 | 15 | 127 | +7% |
+--------------+---------+------+------+---------+---------+--------+
|Full year | 254 | -7 | 232 | 51 | 530 | +109% |
+--------------+---------+------+------+---------+---------+--------+
Fourth quarter
* Softer volume as European economy remains under pressure.
* Operating income grew 72 percent in the quarter from $11 million to $19
million as margin recovery continued in Europe.
Full year
* Sales growth driven by the acquired business volume and higher pricing.
* In 2011, operating income in EMEA increased 126 percent from $37 million to
$84 million due to incremental income from the acquired business and organic
growth.
2012 Guidance
Reported EPS expectations for 2012 are in a range of $4.84 to $5.09. The
guidance includes an anticipated $0.16 per share of acquisition integration and
restructuring charges. Excluding those charges, adjusted EPS for 2012 is
expected to be in a range of $5.00 to $5.25, an increase of 7 percent to 12
percent compared to 2011 adjusted EPS. 2012 is expected to show stronger
comparisons in the second half of the year due to the timing of raw material
hedges and the relative strength of the comparable periods.
Net sales are expected to reach $7 billion in 2012.
The effective tax rate for 2012 is estimated to be between 31 percent and 33
percent.
Capital expenditures in 2012 are anticipated to be between $275 million and $325
million and should support growth investments across the organization,
particularly in North and South America and EMEA.
Conference Call and Webcast
Corn Products International will conduct a conference call today at 9:00 a.m.
Eastern Time (8:00 a.m. Central Time) to be hosted by Ilene Gordon, chairman,
president and chief executive officer, and Cheryl Beebe, chief financial
officer.
The call will be broadcast in a real-time webcast. The broadcast will consist of
the call and a visual presentation accessible through the Corn Products
International web site at www.cornproducts.com. The presentation will be
available to download approximately 60 minutes prior to the start of the call. A
replay of the webcast will be available at www.cornproducts.com.
About the Company
Corn Products International, Inc. is a leading global ingredient provider to the
food, beverage, brewing and pharmaceutical industries as well as numerous
industrial sectors. The Company produces ingredients that provide valuable
solutions to customers in approximately 50 countries. For more information,
visit www.cornproducts.com.
CONTACT:
Investors and Media: Aaron Hoffman, 708-551-2592
Forward-Looking Statements
This news release contains or may contain forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended. The Company intends
these forward-looking statements to be covered by the safe harbor provisions for
such statements.
These statements include, among other things, any predictions regarding the
Company's prospects or future financial condition, earnings, revenues, tax
rates, capital expenditures, expenses or other financial items, any statements
concerning the Company's prospects or future operations, including management's
plans or strategies and objectives therefor and any assumptions, expectations or
beliefs underlying the foregoing.
These statements can sometimes be identified by the use of forward looking words
such as "may," "will," "should," "anticipate," "believe," "plan," "project,"
"estimate," "expect," "intend," "continue," "pro forma," "forecast" or other
similar expressions or the negative thereof. All statements other than
statements of historical facts in this release or referred to in this release
are "forward-looking statements."
These statements are based on current expectations, but are subject to certain
inherent risks and uncertainties, many of which are difficult to predict and are
beyond our control.Although we believe our expectations reflected in these
forward-looking statements are based on reasonable assumptions, stockholders are
cautioned that no assurance can be given that our expectations will prove
correct.
Actual results and developments may differ materially from the expectations
expressed in or implied by these statements, based on various factors, including
the effects of global economic conditions and their impact on our sales volumes
and pricing of our products, our ability to collect our receivables from
customers and our ability to raise funds at reasonable rates; fluctuations in
worldwide markets for corn and other commodities, and the associated risks of
hedging against such fluctuations; fluctuations in the markets and prices for
our co-products, particularly corn oil; fluctuations in aggregate industry
supply and market demand; the behavior of financial markets, including foreign
currency fluctuations and fluctuations in interest and exchange rates; continued
volatility and turmoil in the capital markets; the commercial and consumer
credit environment; general political, economic, business, market and weather
conditions in the various geographic regions and countries in which we
manufacture and/or sell our products; future financial performance of major
industries which we serve, including, without limitation, the food and beverage,
pharmaceuticals, paper, corrugated, textile and brewing industries; energy costs
and availability, freight and shipping costs, and changes in regulatory controls
regarding quotas, tariffs, duties, taxes and income tax rates; operating
difficulties; availability of raw materials, including tapioca and the specific
varieties of corn upon which our products are based; energy issues in Pakistan;
boiler reliability; our ability to effectively integrate and operate acquired
businesses, including National Starch; our ability to achieve budgets and to
realize expected synergies; our ability to complete planned maintenance and
investment projects successfully and on budget; labor disputes; genetic and
biotechnology issues; changing consumption preferences including those relating
to high fructose corn syrup; increased competitive and/or customer pressure in
the corn-refining industry; and the outbreak or continuation of serious
communicable disease or hostilities including acts of terrorism.
Our forward-looking statements speak only as of the date on which they are made
and we do not undertake any obligation to update any forward-looking statement
to reflect events or circumstances after the date of the statement as a result
of new information or future events or developments. If we do update or correct
one or more of these statements, investors and others should not conclude that
we will make additional updates or corrections. For a further description of
these and other risks, see "Risk Factors" included in our Annual Report on Form
10-K for the year ended December 31, 2010 and subsequent reports on Forms 10-Q
or 8-K.
###
Q4 2011 PR Tables:
http://hugin.info/147221/R/1583981/495488.pdf
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originality of the information contained therein.
Source: Corn Products International, Inc via Thomson Reuters ONE
[HUG#1583981]
Unternehmensinformation / Kurzprofil:
Datum: 09.02.2012 - 13:01 Uhr
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News-ID 112954
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