INGREDION INCORPORATED REPORTS STRONG FIRST QUARTER 2016 RESULTS
(Thomson Reuters ONE) -
* First quarter 2016 reported and adjusted EPS were $1.73 and $1.74,
respectively, compared to first quarter 2015 reported and adjusted EPS of
$1.15 and $1.30, respectively
* Reported operating income of $200 million and record adjusted operating
income of $201 million
* Company raises 2016 adjusted EPS guidance range to $6.45-$6.75 from previous
range of $6.20-$6.60
WESTCHESTER, Ill., April 28, 2016 - Ingredion Incorporated (NYSE: INGR), a
leading global provider of ingredient solutions to diversified industries, today
reported results for the first quarter 2016.
"We delivered another strong quarter with solid operating income and earnings
per share and continued progress on our strategic blueprint. Acquisition-related
volume, more favorable price/product mix in both our specialty and core
ingredients as well as margin expansion propelled by our global optimization
efforts and Penford cost synergies all contributed to increases in operating
income and earnings per share," said Ilene Gordon, chairman, president and chief
executive officer. "As expected, North America, Asia Pacific and EMEA achieved
solid operating income growth for the quarter while South American operating
income was lower than the prior year as the region faced slowing economies and
foreign-exchange headwinds.
"We continue our strategic journey to becoming a leading global ingredient
company, and the ground work we laid over the past several years continued to
drive robust operating results. As a result, we expect another strong year and
are raising our anticipated 2016 adjusted EPS to a range from $6.45 to $6.75,"
Gordon added.
Diluted Earnings Per Share (EPS)
+---------------------------------+-------+-------+
| | 1Q15 | 1Q16 |
+---------------------------------+-------+-------+
| Reported EPS | $1.15 | $1.73 |
+---------------------------------+-------+-------+
| Acquisition/Integration Costs | $0.06 | $0.01 |
+---------------------------------+-------+-------+
| Impairment/Restructuring Costs | $0.09 | - |
+---------------------------------+-------+-------+
| Adjusted EPS* | $1.30 | $1.74 |
+---------------------------------+-------+-------+
*Totals may not foot due to rounding
Estimated factors affecting change in adjusted EPS
+----------------------------+--------+
| | 1Q16 |
+----------------------------+--------+
| Margin | 0.51 |
+----------------------------+--------+
| Volume | 0.05 |
+----------------------------+--------+
| Foreign exchange | (0.13) |
+----------------------------+--------+
| Other income/(expense) | (0.02) |
+----------------------------+--------+
| Total operating items | 0.41 |
+----------------------------+--------+
| | |
+----------------------------+--------+
| Financing costs | - |
+----------------------------+--------+
| Shares outstanding | (0.01) |
+----------------------------+--------+
| Tax rate | 0.05 |
+----------------------------+--------+
| Non-controlling interest | (0.01) |
+----------------------------+--------+
| Total non-operating items | 0.03 |
+----------------------------+--------+
| Total items affecting EPS | 0.44 |
+----------------------------+--------+
Financial Highlights
* At March 31, 2016, total debt and cash and short-term investments were $1.89
billion and $497 million, respectively, versus $1.84 billion and $440
million, respectively, at December 31, 2015. Cash and short-term investments
were higher by $57 million primarily driven by higher net income.
* During the first quarter of 2016, net financing costs were $14 million,
consistent with the year-ago period.
* For the first quarter of 2016, reported and adjusted full-year effective tax
rates were both 30.1 percent compared to reported and adjusted effective tax
rates of 31.7 percent and 32.1 percent, respectively, in the year-ago
period.
* Capital expenditures were $59 million for the first quarter of 2016,
approximately in line with the year-ago period.
Business Review
Total Ingredion
+-------------+--------------+---------+------+---------+-------------+--------+
|$ in millions|2015 Net sales|FX Impact|Volume|Price/mix| 2016 Net |% change|
| | | | | | sales | |
+-------------+--------------+---------+------+---------+-------------+--------+
|First quarter| 1,330 | -113 | 60 | 83 | 1,360 | 2% |
+-------------+--------------+---------+------+---------+-------------+--------+
Net Sales
* First quarter net sales were up as a result of improved price/mix in North
America and South America, a more favorable product mix in both specialty
and core ingredients, as well as acquisition-related growth. These factors
were partially offset by changes in foreign currency exchange rates and
organic volume declines attributable to the sale of our Port Colborne,
Canada facility.
Operating income
* First quarter reported and adjusted operating income were $200 million and
$201 million, respectively. These were 44 percent and 28 percent increases,
respectively, compared to $139 million of reported operating income and $157
million of adjusted operating income in the first quarter of 2015. The
increase in adjusted operating income was primarily due to: acquisition-
related volume growth; a better price/product mix in both our specialty and
core ingredients; reduced costs resulting from our global optimization
efforts; and cost synergies in North America related to the Penford
acquisition. These positives were partially offset by the negative effect of
foreign exchange and macroeconomic headwinds in South America, attributable
to Argentina and Brazil.
North America
+-------------+--------------+---------+------+---------+-------------+--------+
|$ in millions|2015 Net sales|FX Impact|Volume|Price/mix| 2016 Net |% change|
| | | | | | sales | |
+-------------+--------------+---------+------+---------+-------------+--------+
|First quarter| 754 | -9 | 60 | 36 | 840 | 11% |
+-------------+--------------+---------+------+---------+-------------+--------+
Operating income
* First quarter operating income increased from $102 million to $149 million.
Higher acquisition-related volumes, a better price/product mix in both our
specialty and core ingredients, as well as operational efficiencies driven
by our network optimization efforts accounted for the increase.
South America
+-------------+--------------+---------+------+---------+-------------+--------+
|$ in millions|2015 Net sales|FX Impact|Volume|Price/mix| 2016 Net |% change|
| | | | | | sales | |
+-------------+--------------+---------+------+---------+-------------+--------+
|First quarter| 258 | -87 | -14 | 57 | 215 | -17% |
+-------------+--------------+---------+------+---------+-------------+--------+
Operating income
* Operating income in the first quarter was $18 million, down $7 million. The
decline was largely a result of the negative effect of foreign exchange,
lower volumes in Brazil and Argentina driven by macroeconomic headwinds, and
higher costs for corn and other inputs. This was partially mitigated by
improved price/mix.
Asia Pacific
+-------------+--------------+---------+------+---------+-------------+--------+
|$ in millions|2015 Net sales|FX Impact|Volume|Price/mix| 2016 Net |% change|
| | | | | | sales | |
+-------------+--------------+---------+------+---------+-------------+--------+
|First quarter| 187 | -12 | 1 | -6 | 169 | -10% |
+-------------+--------------+---------+------+---------+-------------+--------+
Operating income
* First quarter operating income was $28 million, up $2 million from a year
ago. Volume growth and margin expansion were partially offset by foreign
exchange impacts.
Europe, Middle East, Africa (EMEA)
+-------------+--------------+---------+------+---------+-------------+--------+
|$ in millions|2015 Net sales|FX Impact|Volume|Price/mix| 2016 Net |% change|
| | | | | | sales | |
+-------------+--------------+---------+------+---------+-------------+--------+
|First quarter| 131 | -5 | 13 | -4 | 135 | 3% |
+-------------+--------------+---------+------+---------+-------------+--------+
Operating income
* First quarter operating income was $26 million, up $4 million from a year
ago. Volume growth and margin expansion more than offset foreign exchange
impacts.
2016 Guidance
2016 adjusted EPS, excluding acquisition-related and integration costs and
impairment and restructuring costs, is expected to be in the range of $6.45 to
$6.75 compared to adjusted EPS of $5.88 in 2015. The full-year guidance
assumes, compared to last year: overall improvement in North America, Asia
Pacific and EMEA,and South America modestly down given the macroeconomic
environment; an effective tax rate of approximately 30-32 percent; and continued
trade up in our portfolio, including higher-value specialty ingredients, leading
to margin expansion.
In 2016, cash generated by operations is expected to be in the range of $700
million to $750 million and capital expenditures are anticipated to be $300
million.
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 a few hours 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 ingredient solutions
provider. We turn corn, tapioca, potatoes and other vegetables and fruits into
value-added ingredients and biomaterial solutions for the food, beverage, paper
and corrugating, brewing and other industries. Serving customers in over 100
countries, our ingredients make yogurts creamy, candy sweet, paper stronger and
face creams silky. Visit Ingredion.com to learn more.
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, paper, corrugated, 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.
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, 2015 and subsequent reports on Forms 10-Q
and 8-K.
CONTACT:
Investors: Heather Kos, 708-551-2592
Media: Claire Regan, 708-551-2602
Q1 2016 PR Tables :
http://hugin.info/147221/R/2007651/742303.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#2007651]
Unternehmensinformation / Kurzprofil:
Datum: 28.04.2016 - 12:30 Uhr
Sprache: Deutsch
News-ID 467264
Anzahl Zeichen: 18073
contact information:
Town:
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Kategorie:
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