INGREDION INCORPORATED REPORTS FIRST QUARTER 2015 RESULTS
(Thomson Reuters ONE) -
* First quarter 2015 reported and adjusted EPS were $1.15 and $1.30,
respectively, up from $0.96 reported in the first quarter 2014
* 2015 adjusted EPS guidance of $5.50-$6.00, including the Penford transaction
EPS accretion and excluding associated acquisition and integration costs
* Company continues to forecast $650-$700 million of cash generated by
operations
WESTCHESTER, Ill., April 30, 2015 - Ingredion Incorporated (NYSE: INGR), a
leading global provider of ingredient solutions to diversified industries, today
reported results for the first quarter 2015.
"We are pleased with the first quarter results which were highlighted by higher
volumes and operating income, and earnings per share growth," said Ilene Gordon,
chairman, president and chief executive officer. "As expected, operating income
in North America was up significantly as last year's results reflected adverse
weather effects, and in the first quarter of 2015 we had strong volumes in core
and specialty ingredients and good cost control. Asia Pacific and EMEA achieved
solid operating income for the quarter, in line with our expectations despite
foreign exchange headwinds. These positives were slightly offset by softer
demand and foreign exchange headwinds in South America, most predominantly in
Brazil.
"We continue to have confidence in our business model. North America is expected
to continue to drive bottom-line growth with stronger volumes and improved
product mix. Asia Pacific and EMEA are anticipated to improve modestly and be
in line with last year, respectively, despite continuing foreign exchange
headwinds. South America is expected to be generally in line with last year with
strong Andean performance expected to offset weakness in Southern Cone and
Brazil.
"Despite economic challenges and slowing economies, our underlying business is
doing well. Our geographic footprint, broad product portfolio, and focus on
higher-value specialty products are expected to drive growth and shareholder
value.
"Additionally, we are pleased that the Penford Corporation acquisition closed in
March. The acquisition is still expected to be $0.08-$0.12 per share accretive
in 2015 and will enhance our high-value specialty ingredient portfolio. As such,
our expectation for adjusted EPS for the year, including accretion resulting
from the transaction, is $5.50-$6.00, excluding the associated acquisition and
integration costs," Gordon added.
Earnings Per Share (EPS)
+--------------------------------+-------+-------+
| | 1Q14 | 1Q15 |
+--------------------------------+-------+-------+
| Reported EPS | $0.96 | $1.15 |
+--------------------------------+-------+-------+
| Acquisition/Integration costs | - | 0.15 |
+--------------------------------+-------+-------+
| Adjusted EPS | $0.96 | $1.30 |
+--------------------------------+-------+-------+
Estimated factors affecting change in adjusted EPS
+----------------------------+--------+
| | 1Q15 |
+----------------------------+--------+
| Margin | 0.40 |
+----------------------------+--------+
| Volume | 0.05 |
+----------------------------+--------+
| Foreign exchange | (0.10) |
+----------------------------+--------+
| Other income | (0.03) |
+----------------------------+--------+
| Total operating items | 0.32 |
+----------------------------+--------+
| | |
+----------------------------+--------+
| Financing costs | 0.02 |
+----------------------------+--------+
| Shares outstanding | 0.05 |
+----------------------------+--------+
| Tax rate | (0.06) |
+----------------------------+--------+
| Non-controlling interest | 0.01 |
+----------------------------+--------+
| Total non-operating items | 0.02 |
+----------------------------+--------+
| Total items affecting EPS | 0.34 |
+----------------------------+--------+
Financial Highlights
* At March 31, 2015, total debt and cash and short-term investments were $2.2
billion and $609 million, respectively, versus $1.8 billion and $614
million, respectively, at December 31, 2014.
* During the first quarter of 2015, net financing costs were approximately $14
million, or $2.6 million lower than the year-ago period.
* The first quarter reported and adjusted effective tax rates were 31.7
percent and 32.1 percent, respectively, compared to a 28.8 percent reported
tax rate in the year-ago period.
* Capital expenditures, net of disposals, were $58 million in the first
quarter 2015 and $59 million in the year-ago period.
* During the quarter, the Company repurchased 234,000 shares of common stock
for approximately $18 million.
Business Review
Total Ingredion
+-------------+--------------+---------+------+---------+-------------+--------+
|$ in millions|2014 Net sales|FX Impact|Volume|Price/mix| 2015 Net |% change|
| | | | | | sales | |
+-------------+--------------+---------+------+---------+-------------+--------+
|First quarter| 1,357 | -77 | 67 | -17 | 1,330 | -2% |
+-------------+--------------+---------+------+---------+-------------+--------+
Net Sales
* Net sales were down in the first quarter as a result of currency
devaluations and the pass through of lower net corn costs, partially offset
by volume growth, both organic and acquisition related.
Operating income
* First quarter reported operating income and adjusted operating income were
$139 million and $157 million, respectively. This was a 14 percent and 28
percent increase, respectively, compared to $122 million of reported
operating income in the first quarter of 2014. The increase in adjusted
operating income was primarily due to stronger volumes and margins in North
America. This was slightly offset by global foreign exchange headwinds and
stagnant economies in South America, primarily Brazil.
North America
+-------------+--------------+---------+------+---------+-------------+--------+
|$ in millions|2014 Net sales|FX Impact|Volume|Price/mix| 2015 Net |% change|
| | | | | | sales | |
+-------------+--------------+---------+------+---------+-------------+--------+
|First quarter| 737 | -12 | 59 | -30 | 754 | 2% |
+-------------+--------------+---------+------+---------+-------------+--------+
Operating income
* First quarter operating income increased from $65 million to $102 million.
Approximately $20 million of the increase is attributable to the lapping of
the adverse weather effects in the first quarter of last year. Higher
volumes, lower net corn costs, and lower manufacturing expenses accounted
for the remainder of the increase. The impact of Penford's earnings was
immaterial given its mid-March close.
South America
+-------------+--------------+---------+------+---------+-------------+--------+
|$ in millions|2014 Net sales|FX Impact|Volume|Price/mix| 2015 Net |% change|
| | | | | | sales | |
+-------------+--------------+---------+------+---------+-------------+--------+
|First quarter| 294 | -47 | -12 | 23 | 258 | -12% |
+-------------+--------------+---------+------+---------+-------------+--------+
Operating income
* Operating income in the quarter was $25 million, down 18 percent, or $5
million, largely as a result of weaker demand in Brazil. Increased pricing
mitigated the impact of foreign exchange throughout the region and higher
input costs from inflationary effects in Argentina.
Asia Pacific
+-------------+--------------+---------+------+---------+-------------+--------+
|$ in millions|2014 Net sales|FX Impact|Volume|Price/mix| 2015 Net |% change|
| | | | | | sales | |
+-------------+--------------+---------+------+---------+-------------+--------+
|First quarter| 185 | -7 | 18 | -9 | 187 | 1% |
+-------------+--------------+---------+------+---------+-------------+--------+
Operating income
* First quarter operating income was $26 million, flat from a year ago. Weaker
foreign exchange rates were offset by higher volumes.
Europe, Middle East, Africa (EMEA)
+-------------+--------------+---------+------+---------+-------------+--------+
|$ in millions|2014 Net sales|FX Impact|Volume|Price/mix| 2015 Net |% change|
| | | | | | sales | |
+-------------+--------------+---------+------+---------+-------------+--------+
|First quarter| 141 | -11 | 2 | -1 | 131 | -7% |
+-------------+--------------+---------+------+---------+-------------+--------+
Operating income
* First quarter operating income increased five percent to $22 million, up
from $21 million a year ago. Weaker foreign exchange rates were offset by
good cost management.
2015 Guidance
2015 adjusted EPS, including the anticipated $0.08-$0.12 per share accretion
resulting from the Penford acquisition but excluding integration and acquisition
costs, is expected to be in the range of $5.50 to $6.00 compared to adjusted EPS
of $5.20 in 2014. The guidance assumes: overall improvement in North America,
modest improvement in Asia Pacific, EMEA in line with last year, and South
America in line to slightly up versus last year; an effective tax rate of 29 -
31 percent; and earnings per share accretion attributable to the 2014
accelerated share repurchase program. Sales of specialty ingredients are
expected to continue to grow faster than our core portfolio of products.
In 2015, cash generated by operations and capital expenditures are expected to
be approximately $650-$700 million and $300 million, respectively.
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 Jack Fortnum, chief financial officer.
The call will be webcast in real time, and will include a visual presentation
accessible through the Ingredion website 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 and bio-material solutions. With customers in more than 100
countries, Ingredion serves approximately 60 diverse sectors in food, beverage,
brewing, pharmaceuticals and other industries. For more information, visit
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," "assume", "believe," "plan,"
"project," "estimate," "expect," "intend," "continue," "pro forma," "forecast,"
"outlook" 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 circumstances or 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, currency and political conditions in South
America and economic conditions in Europe, 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;
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 potato
starch, 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 the Penford business; 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. Factors relating to the acquisition of Penford
Corporation that could cause actual results and developments to differ from
expectations include that the anticipated benefits of the acquisition, including
synergies, may not be realized; and that the integration of Penford's operations
with our operations may be materially delayed or may be more costly or difficult
than expected.
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, 2014 and subsequent reports on Forms 10-Q
and 8-K.
CONTACT:
Investors: Heather Kos, 708-551-2592
Media: Claire Regan 708-551-2602
Q1 2015 PR Tables FINAL:
http://hugin.info/147221/R/1917038/685732.pdf
This announcement is distributed by GlobeNewswire on behalf of
GlobeNewswire 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 GlobeNewswire
[HUG#1917038]
Unternehmensinformation / Kurzprofil:
Datum: 30.04.2015 - 12:31 Uhr
Sprache: Deutsch
News-ID 389865
Anzahl Zeichen: 18798
contact information:
Town:
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Kategorie:
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