INGREDION INCORPORATED REPORTS SOLID THIRD QUARTER 2017 RESULTS
(Thomson Reuters ONE) -
* Third quarter 2017 reported and adjusted EPS were $2.26 and $2.21,
respectively, up from third quarter 2016 reported and adjusted EPS of $1.93
and $1.96, respectively
* Year-to-date 2017 reported and adjusted EPS were $5.72 and $5.98,
respectively, up from $5.29 of reported EPS and $5.46 adjusted EPS in the
year-ago period
* Company narrows 2017 adjusted EPS guidance range to $7.65-$7.80 from $7.50-
$7.80
WESTCHESTER, Ill., November 1, 2017 - Ingredion Incorporated (NYSE: INGR), a
leading global provider of ingredient solutions to diversified industries, today
reported results for the third quarter 2017. The results reported in accordance
with U.S. generally accepted accounting principles ("GAAP") for 2017 and 2016
include items which are excluded from the non-GAAP financial measures which we
present(*).
"We continue to successfully leverage our business model and execute our
strategic blueprint for growth. Good operating efficiency, the impact of
acquisitions, and higher specialty volumes drove solid operating income and
earnings per share growth," said Ilene Gordon, chairman, president and chief
executive officer.
"With this year's strategic actions, which include deploying capital for growth,
organizational restructuring in South America, enhancing our portfolio, and
raising our dividend, we expect another solid year and anticipate 2017 adjusted
EPS to be in the range of $7.65-$7.80," Gordon added.
Diluted Earnings Per Share (EPS)
+---------------------------------+-------+--------+-------+--------+
| | 3Q16 | 3Q17 | YTD16 | YTD17 |
+---------------------------------+-------+--------+-------+--------+
| Reported EPS | $1.93 | $2.26 | $5.29 | $5.72 |
+---------------------------------+-------+--------+-------+--------+
| Acquisition/Integration Costs | - | $0.01 | $0.01 | $0.11 |
+---------------------------------+-------+--------+-------+--------+
| Impairment/Restructuring Costs | $0.02 | $0.07 | $0.16 | $0.29 |
+---------------------------------+-------+--------+-------+--------+
| U.S./Canada Tax Settlement | | (0.14) | | (0.14) |
+---------------------------------+-------+--------+-------+--------+
| Adjusted EPS** | $1.96 | $2.21 | $5.46 | $5.98 |
+---------------------------------+-------+--------+-------+--------+
**Totals may not foot due to rounding
*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.
Estimated factors affecting change in reported and adjusted EPS
+------------------------------------+--------+--------+
| | 3Q17 | YTD17 |
+------------------------------------+--------+--------+
| Margin | 0.06 | (0.10) |
+------------------------------------+--------+--------+
| Volume | 0.08 | 0.36 |
+------------------------------------+--------+--------+
| Foreign exchange | 0.02 | 0.08 |
+------------------------------------+--------+--------+
| Other income/(expense) | - | 0.02 |
+------------------------------------+--------+--------+
| Total operating items | 0.16 | 0.36 |
+------------------------------------+--------+--------+
| | | |
+------------------------------------+--------+--------+
| Financing costs | (0.01) | (0.08) |
+------------------------------------+--------+--------+
| Shares outstanding | 0.03 | 0.05 |
+------------------------------------+--------+--------+
| Tax rate | 0.08 | 0.20 |
+------------------------------------+--------+--------+
| Non-controlling interest | (0.01) | (0.01) |
+------------------------------------+--------+--------+
| Total non-operating items | 0.09 | 0.16 |
+------------------------------------+--------+--------+
| Total items affecting adjusted EPS | 0.25 | 0.52 |
+------------------------------------+--------+--------+
Financial Highlights
* At September 30, 2017, total debt and cash and short-term investments were
$1.95 billion and $505 million, respectively, versus $1.96 billion and $516
million, respectively, at December 31, 2016. Cash and short-term investments
were lower primarily driven by stock repurchases and the finalization of the
U.S.-Canada tax settlement.
* During the third quarter of 2017, net financing costs were $16 million, or
$1 million higher than the year-ago period, due to modestly higher interest
rates and gross debt compared to the same period in 2016.
* For the third quarter of 2017, reported and adjusted effective tax rates
were 22.1 percent and 26.7 percent, respectively, compared to reported and
adjusted effective tax rates both of 29.2 percent in the year-ago period.
The lower rates were driven by a foreign exchange loss deduction stemming
from the finalization of the U.S.-Canada tax settlement as well as the
appreciation of the Mexican peso during the quarter and resultant valuation
of U.S. dollar-denominated balances in Mexico. These lower rates were
partially offset by a valuation allowance on the net deferred tax assets of
a foreign subsidiary.
* Capital expenditures were $222 million for the first nine months of 2017, up
$25 million from the year-ago period driven by investments in our cost
savings and specialty growth initiatives.
Business Review
Total Ingredion
+-------------+--------------+---------+------+---------+-------------+--------+
|$ in millions|2016 Net sales|FX Impact|Volume|Price/mix| 2017 Net |% change|
| | | | | | sales | |
+-------------+--------------+---------+------+---------+-------------+--------+
|Third quarter| 1,489 | 3 | 30 | -37 | 1,485 | - |
+-------------+--------------+---------+------+---------+-------------+--------+
|Year-to-date | 4,304 | 36 | 125 | -70 | 4,395 | 2% |
+-------------+--------------+---------+------+---------+-------------+--------+
Net Sales
* Third quarter net sales were flat compared to the year-ago period.
Acquisition and specialty volume growth were offset by less favorable
price/mix due to the pass through of lower raw material costs.
* Year-to-date net sales were up as a result of acquisition-, specialty- and
core-related volume growth and changes in foreign currency exchange rates.
These factors were partially offset by less favorable price/mix due to the
pass through of lower raw material costs.
Operating income
* Third quarter reported and adjusted operating income were $233 million and
$241 million, respectively. These were five percent and eight percent
increases, respectively, compared to $221 million of reported operating
income and $223 million of adjusted operating income in the third quarter of
2016. The increases in reported and adjusted operating income were primarily
due to margin expansion driven by operational efficiencies as well as
acquisition- and organic specialty-related volume growth. These positives
were partially offset by slow-recovering macroeconomic conditions in South
America.
* Year-to-date 2017 reported and adjusted operating income were $639 million
and $674 million, respectively. These were three percent and six percent
increases, respectively, compared to $619 million of reported operating
income and $636 million of adjusted operating income year-to-date 2016. The
increases in reported and adjusted operating income were primarily due to
acquisition-, specialty- and core-related volume growth. These positives
were partially offset by difficult macroeconomic conditions in South
America, the interruption of manufacturing activities in Argentina and
resulting temporary higher costs during the first half of the year.
* Third quarter reported operating income was lower than adjusted operating
income by $8 million. Restructuring costs related to our finance
transformation initiative were $5 million while other employee-related
severance was $2 million. Acquisition and integration costs associated with
TIC Gums were $1 million.
* Year-to-date 2017 reported operating income was lower than adjusted
operating income by $35 million. Restructuring costs include: Argentina at
$17 million, finance transformation at $5 million, and other employee-
related severance at $1 million. Acquisition and integration costs
associated with TIC Gums were $12 million.
North America
+-------------+--------------+---------+------+---------+-------------+--------+
|$ in millions|2016 Net sales|FX Impact|Volume|Price/mix| 2017 Net |% change|
| | | | | | sales | |
+-------------+--------------+---------+------+---------+-------------+--------+
|Third quarter| 899 | 4 | 6 | -6 | 903 | - |
+-------------+--------------+---------+------+---------+-------------+--------+
|Year-to-date | 2,634 | 3 | 75 | -23 | 2,689 | 2% |
+-------------+--------------+---------+------+---------+-------------+--------+
Operating income
* Third quarter operating income increased from $164 million to $179 million.
Margin expansion driven by operational efficiencies as well as the inclusion
of the TIC Gums acquisition accounted for the increase.
* Year-to-date operating income increased from $474 million to $520 million.
Margin expansion driven by operational efficiencies as well as the inclusion
of the TIC Gums acquisition and specialty ingredient volume growth accounted
for the increase.
South America
+-------------+--------------+---------+------+---------+-------------+--------+
|$ in millions|2016 Net sales|FX Impact|Volume|Price/mix| 2017 Net |% change|
| | | | | | sales | |
+-------------+--------------+---------+------+---------+-------------+--------+
|Third quarter| 276 | -4 | 8 | -23 | 257 | -7% |
+-------------+--------------+---------+------+---------+-------------+--------+
|Year-to-date | 731 | 33 | -4 | -20 | 740 | 1% |
+-------------+--------------+---------+------+---------+-------------+--------+
Operating income
* Operating income in the third quarter was $26 million, down $1 million from
a year ago. Volume growth was more than offset by less favorable price/mix
caused by a lag in the pass through of higher raw material costs.
* Year-to-date operating income was $44 million, down $15 million from a year
ago. The decrease was largely a result of Argentina's difficult
macroeconomic conditions, the interruption of manufacturing activities in
Argentina and resulting temporary higher costs during the first half of the
year.
Asia Pacific
+-------------+--------------+---------+------+---------+-------------+--------+
|$ in millions|2016 Net sales|FX Impact|Volume|Price/mix| 2017 Net |% change|
| | | | | | sales | |
+-------------+--------------+---------+------+---------+-------------+--------+
|Third quarter| 185 | - | 14 | -10 | 189 | 2% |
+-------------+--------------+---------+------+---------+-------------+--------+
|Year-to-date | 534 | 5 | 50 | -34 | 555 | 4% |
+-------------+--------------+---------+------+---------+-------------+--------+
Operating income
* Third quarter operating income was $29 million, flat to a year ago. Volume
growth was offset by less favorable price/mix due to core customer mix
diversification.
* Year-to-date operating income was $88 million, up $1 million from a year
ago. The increase was largely due to volume growth partially offset by less
favorable price/mix due to core customer mix diversification.
Europe, Middle East, Africa (EMEA)
+-------------+--------------+---------+------+---------+-------------+--------+
|$ in millions|2016 Net sales|FX Impact|Volume|Price/mix| 2017 Net |% change|
| | | | | | sales | |
+-------------+--------------+---------+------+---------+-------------+--------+
|Third quarter| 129 | 2 | 2 | 3 | 136 | 5% |
+-------------+--------------+---------+------+---------+-------------+--------+
|Year-to-date | 405 | -6 | 4 | 8 | 411 | 1% |
+-------------+--------------+---------+------+---------+-------------+--------+
Operating income
* Third quarter operating income was $26 million, up $1 million from a year
ago. Volume growth and favorable price/mix more than offset higher costs in
Europe.
* Year-to-date operating income was $83 million, up $3 million from a year
ago. Volume growth and favorable price/mix more than offset foreign exchange
impacts and higher input costs in Europe.
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 $7.65-$7.80 compared to adjusted EPS of $7.13 in 2016. The full-year guidance
assumes, compared to last year: overall improvement in North America, Asia
Pacific, and EMEA; South America down; an adjusted effective tax rate of
approximately 29 percent; and continued trade up in our portfolio, including
higher-value specialty ingredients, leading to margin expansion.
In 2017, cash generated by operations is now expected to be in the range of $750
to $775 million, impacted by payment and reimbursement timing associated with
the U.S.-Canada tax settlement. Capital expenditures are anticipated to be
between $300 and $320 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 James Gray, 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 for a limited time thereafter 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 www.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 new products and
services at a rate or of a quality 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 which 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, 2016 and subsequent reports on Forms 10-Q
and 8-K.
CONTACT:
Investors: Heather Kos, 708-551-2592
Media: Claire Regan, 708-551-2602
3Q17 earnings release FINAL:
http://hugin.info/147221/R/2146290/822974.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: 01.11.2017 - 11:30 Uhr
Sprache: Deutsch
News-ID 566111
Anzahl Zeichen: 23654
contact information:
Town:
Westchester, Illinois
Kategorie:
Business News
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