Corn Products International, Inc. Revises 2005 Outlook
September 22 2005 - 6:40AM
PR Newswire (US)
WESTCHESTER, Ill., Sept. 22 /PRNewswire-FirstCall/ -- Corn Products
International, Inc. (NYSE:CPO) today announced that it is revising
its 2005 outlook. The Company expects 2005 earnings per diluted
share to be in the range of $1.16 to $1.22, compared to $1.25 in
2004. The previous outlook was in the range of $1.34 to $1.44.
Commenting on the change in outlook, Sam Scott, chairman, president
and chief executive officer, cited two primary factors: -- Lower
operating profits coming from the Company's US operations; and --
An increase in the Company's estimated effective tax rate. The
Company's US business is incurring additional energy and related
costs at its Argo manufacturing facility. The Company's most recent
2005 earnings outlook, as stated in its second quarter 2005
earnings press release, was based on the expectation that its
existing coal boilers, which are in the process of being replaced,
would continue to operate at the then current rate. Unfortunately,
third quarter boiler performance has been far less reliable than
during the first half of this year and throughout 2004. This has
required substantially increased use of a backup natural gas boiler
at the same time that natural gas costs have increased to all-time
highs. For the foreseeable future, the Company intends to operate
its Argo plant with less coal and more natural gas to minimize
unplanned boiler outages. The Company is taking this action, along
with other steps, to improve the coal boilers' reliability during
the interim period until the new coal boiler is up and running as
expected in the third quarter of next year. The change in mix
between expected US income and foreign income has also impacted the
Company's estimated effective tax rate for 2005. The current
earnings outlook of $1.16 to $1.22 per diluted share incorporates
an effective tax rate of 38.5 percent, up from 34.5 percent used
for the previous guidance, and up from 30 percent last year.
Slightly less than half of the $.18 to $.22 per diluted share
reduction in the Company's earnings outlook is attributable to the
change in the estimated effective tax rate from 34.5 percent to
38.5 percent. The Company will hold an analyst conference call at
7:30 a.m. CT on Thursday, September 22, 2005. The call will be
broadcast in a real-time webcast available to the public at the
Corn Products International web site, http://www.cornproducts.com/.
The call will be available at http://www.cornproducts.com/ for
seven days. Please note that this is a "listen-and-view-only"
presentation. ABOUT THE COMPANY Corn Products International, Inc.
is one of the world's largest corn refiners and a major supplier of
high-quality food ingredients and industrial products derived from
the wet milling and processing of corn and other starch- based
materials. The Company is the number-one worldwide producer of
dextrose and a leading regional producer of starch, high fructose
corn syrup and glucose. In 2004, the Company recorded net sales of
$2.3 billion with operations in 16 countries at 34 plants,
including wholly owned businesses, affiliates and alliances.
Headquartered in Westchester, Ill., it was founded in 1906. The
Company is listed on the New York Stock Exchange under the symbol
CPO. Additional information can be found on the World Wide Web at
http://www.cornproducts.com/. This news release contains or may
contain forward-looking statements within the meaning of Section
27A of the Securities Exchange Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. The Company intends these forward
looking statements to be covered by the safe harbor provisions for
such statements. These statements include, among other things, any
predictions regarding the Company's future financial condition,
earnings, revenues, expenses or other financial items, any
statements concerning the Company's prospects or future operation,
including management's plans or strategies and objectives therefor
and any assumptions underlying the foregoing. These statements can
sometimes be identified by the use of forward looking words such as
"may," "will," "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 report
or referred to or incorporated by reference into this report are
"forward-looking statements." These statements are subject to
certain inherent risks and uncertainties. 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 conveyed in these statements, based on various
factors, including fluctuations in worldwide commodities markets
and the associated risks of hedging against such fluctuations;
fluctuations in aggregate industry supply and market demand;
general political, economic, business, market and weather
conditions in the various geographic regions and countries in which
we manufacture and/or sell our products; fluctuations in the value
of local currencies, energy costs and availability, freight and
shipping costs, and changes in regulatory controls regarding
quotas, tariffs, duties, taxes and income tax rates; operating
difficulties, including boiler reliability; labor disputes; genetic
and biotechnology issues; changing consumption preferences and
trends; increased competitive and/or customer pressure in the
corn-refining industry; the outbreak or continuation of hostilities
including acts of terrorism; stock market fluctuation and
volatility; and the resolution of the uncertainties resulting from
the Mexican HFCS tax. 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. 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 certain risk factors, see
the Company's most recently filed Annual Report on Form 10-K and
subsequent reports on Forms 10-Q or 8-K. DATASOURCE: Corn Products
International, Inc. CONTACT: Richard Vandervoort, +1-708-551-2595,
(investors), or Mark Lindley, +1-708-551-2602 (media), both for
Corn Products International, Inc. Web site:
http://www.cornproducts.com/
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