INGREDION INCORPORATED REPORTS SOLID FIRST QUARTER 2013 RESULTS
(Thomson Reuters ONE) -
* First quarter 2013 reported EPS increased 17 percent to $1.41 from $1.21 in
the first quarter 2012
* First quarter 2013 reported EPS rose 12 percent to $1.41 compared to year-
ago adjusted EPS of $1.26
* Company raised quarterly dividend by 46 percent in the quarter, from $0.26
to $0.38
WESTCHESTER, Ill., May 2, 2013 - Ingredion Incorporated (NYSE: INGR), a leading
global provider of ingredient solutions to diversified industries, today
reported results for the first quarter 2013.
"We are pleased with the first quarter results which were highlighted by
operating income and earnings per share growth. Contributing to the growth was
good performance in the North America, Asia Pacific and Europe/Middle
East/Africa regions," said Ilene Gordon, chairman, president and chief executive
officer. "Our South American region continues to effectively manage through the
ongoing difficult environment, which includes lower economic growth, inflation
and currency devaluations. In spite of these factors, South America operating
income was down only $2 million."
We continue to have confidence in our 2013 outlook supported by our on-going
ability to cope with macroeconomic headwinds and manage risk while still
capitalizing on long-term growth opportunities," Gordon added.
Earnings Per Share (EPS)
First quarter diluted EPS rose 17 percent to $1.41 compared to $1.21 last year.
The first quarter of 2012 included $0.03 of restructuring charges and $0.02 of
business integration costs. Excluding these items, reported 2013 EPS increased
12 percent to $1.41 in the quarter compared to $1.26 of adjusted EPS in the
year-ago quarter. The estimated drivers of the increase in the first quarter
2013 EPS versus the 2012 adjusted EPS were $0.15 from margin, partially offset
by $0.05 of foreign currency devaluation and $0.03 due to lower volumes. A
lower tax rate provided a $0.07 benefit and lower net financing costs
contributed $0.02, partially offset by an increase in share count, which
resulted in a negative impact of $0.01.
Financial Highlights
* During the first quarter of 2013, net financing costs were $17 million
versus $20 million in the year-ago period. The decrease primarily reflects
a combination of reduced borrowings and lower interest rates.
* The first quarter effective tax rate was 29.2 percent compared to 32.4
percent in the year-ago period. The year-ago period included a number of
discrete items, which negatively impacted the rate by 140 basis points.
* At March 31, 2013, total debt and cash and cash equivalents were $1.8
billion and $526 million, respectively, versus $1.8 billion and $609
million, respectively, at December 31, 2012.
* In the first quarter of 2013, cash flow used in operations was $30 million
compared to $29 million of cash generated from operations in the prior year
period. The impact of higher raw material costs was reflected in a short-
term investment in inventories. Cash used was also impacted by an increase
in accounts receivable due to the timing of collections.
* Capital expenditures, net of disposals, were $66 million in the first
quarter of 2013 compared to $59 million in the year-ago period.
Business Review
Total Ingredion
+-------------+--------------+---------+------+---------+-------------+--------+
|$ in millions|2012 Net sales|FX Impact|Volume|Price/mix| 2013 Net |% change|
| | | | | | sales | |
+-------------+--------------+---------+------+---------+-------------+--------+
|First quarter| 1,574 | -38 | -39 | 87 | 1,584 | +1% |
+-------------+--------------+---------+------+---------+-------------+--------+
* Sales grew 1 percent on price/mix improvements partially offset by volume
declines and currency devaluations.
* Operating income was $175 million. This is a 9 percent increase compared to
reported operating income in the first quarter of 2012 and a 5 percent
increase compared to the $167 million of adjusted operating income in the
year-ago quarter. The change was primarily due to improved pricing and cost
savings.
North America
+-------------+--------------+---------+------+---------+-------------+--------+
|$ in millions|2012 Net sales|FX Impact|Volume|Price/mix| 2013 Net |% change|
| | | | | | sales | |
+-------------+--------------+---------+------+---------+-------------+--------+
|First quarter| 892 | -1 | -26 | 45 | 910 | +2% |
+-------------+--------------+---------+------+---------+-------------+--------+
* Sales growth was driven by positive price/mix partially offset by negative
volume and slight currency headwinds. The benefits of the North American
manufacturing network optimization, particularly the decision to shed some
low margin business, resulted in higher price/mix.
* Operating income was up 8 percent, or $8 million, from $100 million to $108
million primarily due to favorable price/mix and continued focus on cost
savings initiatives from manufacturing efficiencies.
South America
+-------------+--------------+---------+------+---------+-------------+--------+
|$ in millions|2012 Net sales|FX Impact|Volume|Price/mix| 2013 Net |% change|
| | | | | | sales | |
+-------------+--------------+---------+------+---------+-------------+--------+
|First quarter| 368 | -35 | -12 | 28 | 349 | -5% |
+-------------+--------------+---------+------+---------+-------------+--------+
* Sales were down largely due to currency devaluations in Brazil and Argentina
along with volume declines resulting from continued weak economic conditions
and the impact of price increases.
* Operating income in the quarter was $43 million, down 5 percent, or about $2
million. Favorable price/mix was offset by currency devaluations, lower
volumes and higher expenses.
Asia Pacific
+-------------+--------------+---------+------+---------+-------------+--------+
|$ in millions|2012 Net sales|FX Impact|Volume|Price/mix| 2013 Net |% change|
| | | | | | sales | |
+-------------+--------------+---------+------+---------+-------------+--------+
|First quarter| 189 | 3 | -3 | 7 | 196 | +3% |
+-------------+--------------+---------+------+---------+-------------+--------+
* Sales growth was driven by positive price/mix and favorable foreign exchange
rates. The fourth quarter 2012 sale of an investment in a non-wholly owned
consolidated subsidiary in China had a negative $5 million impact on volume.
* Operating income increased 13 percent from $20 million to $23 million
largely due to favorable price/mix.
Europe, Middle East, Africa (EMEA)
+-------------+--------------+---------+------+---------+-------------+--------+
|$ in millions|2012 Net sales|FX Impact|Volume|Price/mix| 2013 Net |% change|
| | | | | | sales | |
+-------------+--------------+---------+------+---------+-------------+--------+
|First quarter| 126 | -5 | 3 | 6 | 130 | +3% |
+-------------+--------------+---------+------+---------+-------------+--------+
* Sales rose by $4 million due to price/mix improvement and volume growth
partially offset by currency devaluations. Volume was negatively impacted
by $5 million due to the 2012 closure of the Company's plant in Kenya and a
change to a distribution model in that country.
* Operating income was $19 million, an increase of 2 percent mainly due to
price/mix improvement and volume growth.
2013 Guidance
2013 EPS guidance remains in a range of $5.60 to $6.00 compared to adjusted EPS
in 2012 of $5.57. The guidance anticipates weakness in the global economy;
currency headwinds largely in Brazil, Argentina and Pakistan; continued
inflationary pressures, primarily in South America; and, an effective tax rate
of approximately 28 to 30 percent. The second quarter 2013 EPS is likely to be
relatively flat with the year-ago adjusted EPS. Growth is expected to
accelerate in the second half of 2013.
Capital expenditures in 2013 are anticipated to be in the range of $350-400
million and should support growth and cost reduction investments across the
organization.
Conference Call and Webcast
Ingredion 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 Ingredion web site at
www.ingredion.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.ingredion.com.
ABOUT THE COMPANY
Ingredion Incorporated (NYSE:INGR) is a leading global ingredients solutions
provider specializing in nature-based sweeteners, starches and nutrition
ingredients. With customers in more than 40 countries, Ingredion serves
approximately 60 diverse sectors in food, beverage, brewing, pharmaceuticals and
other industries. For more information, visit www.ingredion.com.
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.
Forward-looking statements include, among other things, any statements 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, including, particularly, continuation
or worsening of the current economic conditions in Europe and Argentina, 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 buy our raw materials or manufacture 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; 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, 2012 and subsequent reports on Forms 10-Q
and 8-K.
CONTACT:
Investors: Aaron Hoffman, 708-551-2592
Media: Claire Regan, 708-551-2602
Q1 2013 PR Tables:
http://hugin.info/147221/R/1698534/560017.pdf
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Ingredion Incorporated via Thomson Reuters ONE
[HUG#1698534]
Unternehmensinformation / Kurzprofil:
Datum: 02.05.2013 - 12:30 Uhr
Sprache: Deutsch
News-ID 255568
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contact information:
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