INGREDION INCORPORATED REPORTS SOLID FOURTH QUARTER 2016 RESULTS AND RECORD FULL-YEAR EARNINGS PER SHARE
(Thomson Reuters ONE) -
* Fourth quarter 2016 reported and adjusted EPS* were $1.26 and $1.67,
respectively, compared to fourth quarter 2015 of both reported and adjusted
EPS of $1.42
* Full-year 2016 reported and adjusted EPS were $6.55 and $7.13, respectively,
up from $5.51 and $5.88 in the year-ago period, respectively
* Record cash flow from operations of $771 million
* 2017 adjusted EPS is expected to be $7.40-$7.80
WESTCHESTER, Ill., Feb. 2, 2017 - Ingredion Incorporated (NYSE: INGR), a leading
global provider of ingredient solutions to diversified industries, today
reported results for the fourth quarter 2016. The results reported in accordance
with U.S. generally accepted accounting principles ("GAAP") for 2016 and 2015
include items which are excluded from the non-GAAP financial measures which we
present(*).
"We concluded 2016 with record earnings per share and operating income, and
significant progress on our strategic blueprint. Sales of our higher-value
specialty portfolio grew to 26 percent of net sales for the year and our
acquisitions of TIC Gums and Shandong Huanong Specialty Corn were completed in
the fourth quarter," said Ilene Gordon, chairman, president and chief executive
officer. "For the year, more favorable price/product mix across the portfolio,
as well as our global optimization efforts drove margin expansion. North
America, Asia Pacific and EMEA achieved record operating income year-over-year.
South America, although down, accelerated regional network optimization and
restructuring efforts to offset difficult macroeconomic conditions and foreign-
exchange headwinds.
"We remain committed to creating long-term shareholder value. We expect
continued growth in our specialty portfolio, disciplined cost management, and
ongoing capital investments for margin expansion. And, we will explore potential
M&A opportunities that drive specialty growth. For 2017, we anticipate adjusted
EPS of $7.40 to $7.80," Gordon added.
*Adjusted Diluted Earnings Per Share ("adjusted EPS"), adjusted operating income
and adjusted effective income tax rate are non-GAAP financial measures. See
section II of the Supplemental Financial Information entitled "Non-GAAP
Information" following the Condensed Consolidated Financial Statements included
in this press release for a reconciliation of these non-GAAP financial measures
to the most directly comparable U.S. GAAP measures.
Diluted Earnings Per Share (EPS)
+---------------------------------+--------+-------+--------+-------+
| | 4Q15 | 4Q16 | 2015 | 2016 |
+---------------------------------+--------+-------+--------+-------+
| Reported EPS | $1.42 | $1.26 | $5.51 | $6.55 |
+---------------------------------+--------+-------+--------+-------+
| Acquisition/Integration Costs | $0.03 | $0.01 | $0.19 | $0.03 |
+---------------------------------+--------+-------+--------+-------+
| Impairment/Restructuring Costs | $0.04 | $0.03 | $0.25 | $0.20 |
+---------------------------------+--------+-------+--------+-------+
| U.S./Canada Tax Settlement | - | $0.36 | - | $0.36 |
+---------------------------------+--------+-------+--------+-------+
| Litigation settlement | 0.06 | - | 0.06 | - |
+---------------------------------+--------+-------+--------+-------+
| Gain on sale of plant | (0.12) | - | (0.12) | - |
+---------------------------------+--------+-------+--------+-------+
| Adjusted EPS** | $1.42 | $1.67 | $5.88 | $7.13 |
+---------------------------------+--------+-------+--------+-------+
**Totals may not foot due to rounding
Estimated factors affecting change in adjusted EPS
+------------------------------------+--------+--------+
| | 4Q16 | 2016 |
+------------------------------------+--------+--------+
| Margin | 0.20 | 1.11 |
+------------------------------------+--------+--------+
| Volume | (0.03) | 0.15 |
+------------------------------------+--------+--------+
| Foreign exchange | (0.01) | (0.16) |
+------------------------------------+--------+--------+
| Other income/(expense) | 0.01 | 0.06 |
+------------------------------------+--------+--------+
| Total operating items | 0.17 | 1.16 |
+------------------------------------+--------+--------+
| | | |
+------------------------------------+--------+--------+
| Financing costs | (0.01) | (0.04) |
+------------------------------------+--------+--------+
| Shares outstanding | (0.03) | (0.11) |
+------------------------------------+--------+--------+
| Tax rate | 0.12 | 0.26 |
+------------------------------------+--------+--------+
| Non-controlling interest | - | (0.02) |
+------------------------------------+--------+--------+
| Total non-operating items | 0.08 | 0.09 |
+------------------------------------+--------+--------+
| Total items affecting adjusted EPS | 0.25 | 1.25 |
+------------------------------------+--------+--------+
Financial Highlights
* At December 31, 2016, total debt and cash and short-term investments were
$1.96 billion and $516 million, respectively, versus $1.84 billion and $440
million, respectively, at December 31, 2015. Cash and short-term investments
were higher primarily driven by higher net income.
* During the fourth quarter of 2016, net financing costs were $18 million, or
approximately $1 million higher than the year-ago period, due to higher
interest expense.
* For the fourth quarter of 2016, reported and adjusted effective tax rates*
were 43.4 percent and 27.8 percent, respectively compared to reported and
adjusted effective tax rates of 31.2 percent and 32.9 percent, respectively,
in the year-ago period. The higher rate was largely driven by the settlement
of a tax matter concerning the allocation of income between the United
States and Canada, slightly offset by increased foreign tax credits versus
the year-ago period. The lower adjusted tax rate was largely driven by
increased foreign tax credits, which were slightly offset by a valuation
allowance, a reserve for unrecognized tax benefits and U.S. taxes on
unremitted earnings of foreign subsidiaries.
* Full-year capital expenditures were $283 million, up slightly from the year-
ago period.
Business Review
Total Ingredion
+--------------+-------------+---------+------+---------+-------------+--------+
|$ in millions | 2015 Net |FX Impact|Volume|Price/mix| 2016 Net |% change|
| | sales | | | | sales | |
+--------------+-------------+---------+------+---------+-------------+--------+
|Fourth quarter| 1,405 | -12 | -50 | 56 | 1,399 | - |
+--------------+-------------+---------+------+---------+-------------+--------+
|Full year | 5,621 | -212 | -23 | 318 | 5,704 | 1% |
+--------------+-------------+---------+------+---------+-------------+--------+
Net Sales
* Fourth quarter net sales were relatively flat, as a result of improved
price/mix in North America and South America and a more favorable product
mix in both specialty and core ingredients. These factors were offset by
changes in foreign currency exchange rates and volume declines attributable
to the sale of our Port Colborne, Canada, facility, a planned rebalancing of
the North America network, and difficult macroeconomic conditions in South
America.
* Full-year 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
volume declines attributable to the sale of our Port Colborne, Canada,
facility and difficult macroeconomic conditions in South America.
Operating income
* Fourth quarter reported and adjusted operating income were $189 million and
$194 million, respectively. These were nine percent and 10 percent
increases, respectively, compared to $173 million of reported operating
income and $177 million of adjusted operating income in the fourth quarter
of 2015. The increases in operating income were primarily due to better
price/product mix in both our specialty and core ingredients and reduced
costs resulting from our global optimization efforts.
* Full-year 2016 reported and adjusted operating income were $808 million and
$830 million, respectively. These were 22 percent and 18 percent increases,
respectively, compared to $660 million of 2015 reported operating income and
$706 million of 2015 adjusted operating income. The increases in operating
income were primarily due to a better price/product mix in both our
specialty and core ingredients, acquisition-related growth, and reduced
costs resulting from our global optimization efforts. These positives were
partially offset by the negative effect of foreign exchange and difficult
macroeconomic conditions in South America.
* Fourth quarter reported operating income was lower than adjusted operating
income by $5 million. Of this difference, $4 million is related to
restructuring in North America and costs associated with the execution of a
global IT outsourcing project and $1 million is related to acquisition costs
associated with the TIC Gums and Shandong Huanong Specialty Corn
acquisitions.
North America
+--------------+-------------+---------+------+---------+-------------+--------+
|$ in millions | 2015 Net |FX Impact|Volume|Price/mix| 2016 Net |% change|
| | sales | | | | sales | |
+--------------+-------------+---------+------+---------+-------------+--------+
|Fourth quarter| 842 | _ | -52 | 24 | 813 | -3% |
+--------------+-------------+---------+------+---------+-------------+--------+
|Full year | 3,345 | -10 | -24 | 136 | 3,447 | 3% |
+--------------+-------------+---------+------+---------+-------------+--------+
Operating income
* Fourth quarter operating income increased from $117 million to $137 million.
Better price/product mix in both our specialty and core ingredients, cost
synergies related to the Penford acquisition, as well as operational
efficiencies driven by network optimization efforts accounted for the
increase.
* Full-year operating income increased from $479 million to $611 million.
Higher acquisition-related volumes, a better price/product mix in both our
specialty and core ingredients, cost synergies related to the Penford
acquisition, as well as operational efficiencies driven by network
optimization efforts accounted for the increase.
South America
+--------------+-------------+---------+------+---------+-------------+--------+
|$ in millions | 2015 Net |FX Impact|Volume|Price/mix| 2016 Net |% change|
| | sales | | | | sales | |
+--------------+-------------+---------+------+---------+-------------+--------+
|Fourth quarter| 248 | -8 | -5 | 44 | 279 | 12% |
+--------------+-------------+---------+------+---------+-------------+--------+
|Full year | 1,012 | -168 | -56 | 222 | 1,010 | _ |
+--------------+-------------+---------+------+---------+-------------+--------+
Operating income
* Operating income in the fourth quarter was $29 million, up $2 million from a
year ago. The increase was largely a result of improved price/mix and the
acceleration of the consolidation of Brazilian manufacturing facilities.
However, lower volumes driven by difficult macroeconomic conditions and
higher costs for corn and other inputs partially offset the increase.
* Full-year operating income was $89 million, down $12 million from a year
ago. The decline was largely a result of the negative effect of foreign
exchange, lower volumes in Brazil and Southern Cone driven by difficult
macroeconomic conditions, and higher costs for corn and other inputs. This
was partially mitigated by improved price/mix and operational efficiencies.
Asia Pacific
+--------------+-------------+---------+------+---------+-------------+--------+
|$ in millions | 2015 Net |FX Impact|Volume|Price/mix| 2016 Net |% change|
| | sales | | | | sales | |
+--------------+-------------+---------+------+---------+-------------+--------+
|Fourth quarter| 180 | 2 | 5 | -13 | 175 | -3% |
+--------------+-------------+---------+------+---------+-------------+--------+
|Full year | 733 | -14 | 24 | -35 | 709 | -3% |
+--------------+-------------+---------+------+---------+-------------+--------+
Operating income
* Fourth quarter operating income was $25 million, down $2 million from a year
ago. The decrease was largely due to less favorable price/mix partially
offset by volume growth.
* Full-year operating income was $111 million, up $4 million from a year ago.
Volume growth and margin expansion were partially offset by negative foreign
exchange impacts.
Europe, Middle East, Africa (EMEA)
+--------------+-------------+---------+------+---------+-------------+--------+
|$ in millions | 2015 Net |FX Impact|Volume|Price/mix| 2016 Net |% change|
| | sales | | | | sales | |
+--------------+-------------+---------+------+---------+-------------+--------+
|Fourth quarter| 135 | -5 | 2 | 1 | 133 | -1% |
+--------------+-------------+---------+------+---------+-------------+--------+
|Full year | 530 | -19 | 32 | -5 | 538 | 2% |
+--------------+-------------+---------+------+---------+-------------+--------+
Operating income
* Fourth quarter operating income was $26 million, down $1 million from a year
ago. Volume growth was offset by foreign exchange impacts and higher input
costs in Europe.
* Full-year operating income was $106 million, up $13 million from a year ago.
Volume growth and margin expansion more than offset foreign exchange
impacts.
2017 Guidance
2017 adjusted EPS, excluding acquisition-related, integration, and restructuring
costs, as well as any potential impairment costs, is expected to be in the range
of $7.40 to $7.80 compared to adjusted EPS of $7.13 in 2016. The full-year
guidance assumes, compared to last year: overall improvement in all four
regions; an adjusted effective tax rate of approximately 29 to 31 percent; and
continued trade up in our portfolio, including higher-value specialty
ingredients, leading to margin expansion.
In 2017, cash generated by operations is expected to be in the range of $800 to
$850 million and capital expenditures are anticipated to be between $300 and
$325 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, executive vice president and 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 grains, fruits, vegetables and other plant materials 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 crackers crunchy, yogurts creamy, candy sweet,
paper stronger and add fiber to nutrition bars. 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," "propels," "opportunity," "potential" 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; particularly
United States tax reform; operating difficulties; availability of raw materials,
including potato starch, tapioca, gum arabic and the specific varieties of corn
upon which our products are based; our ability to develop or acquire new
products and a services at rates or of qualities sufficient to meet
expectations; 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. Factors relating to the acquisition of TIC Gums that could cause
actual results and developments to differ from expectations include: the
anticipated benefits of the acquisition, including synergies, may not be
realized; and the integration of TIC Gum's operations with those of Ingredion
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, 2015 and subsequent reports on Forms 10-Q
and 8-K.
CONTACT:
Investors: Heather Kos, 708-551-2592
Media: Claire Regan, 708-551-2602
4Q16 earnings release FINAL:
http://hugin.info/147221/R/2075402/780370.pdf
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Ingredion Incorporated via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 02.02.2017 - 12:35 Uhr
Sprache: Deutsch
News-ID 521663
Anzahl Zeichen: 24591
contact information:
Town:
Westchester, Illinois
Kategorie:
Business News
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