Corn Products International, Inc. Comments On Possible Canadian Duties On U.S. Corn
September 22 2005 - 6:50AM
PR Newswire (US)
WESTCHESTER, Ill., Sept. 22 /PRNewswire-FirstCall/ -- Corn Products
International, Inc. (NYSE:CPO) is disappointed in the Canadian
government's decision to initiate an anti-dumping and/or
countervailing duty investigation on corn imported from the United
States. Corn Products' subsidiary, operating under the "Casco"
name, is Canada's largest industrial corn user and the sole
processor of corn-refined starches, sweeteners, corn oil and animal
feeds. It has operated in Canada for more than 100 years and
employs more than 400 people. The Company does not believe that the
potential duties are in the best interest of the various
stakeholders who may be affected, including customers, vendors,
employees or the Canadian agricultural industry. As a result, Corn
Products International opposes this action and plans to pursue all
regulatory and other measures available to it to counter the
decision. Depending upon their amount, the Company believes that
the potential duties, which it would not expect to take effect
until mid-December 2005 at the earliest, could have a significant
impact on its Canadian operations. However, Corn Products
International is exploring actions to minimize the impact to the
Company as a whole. Taking these actions into account, the Company
does not believe that the potential imposition of duties would have
a negative effect on the Company's consolidated operating results
on an ongoing basis, excluding the impact of any potential
restructuring activities that may occur. The Company's efforts to
minimize the impact could include the reconfiguration of the
Company's North American business, operations, customers and
market, as well as the potential closure of one or all of its
existing three Canadian plants. "We are understandably concerned
about the plight of Canada's corn growers," said Sam Scott,
chairman, president and chief executive officer of Corn Products
International. "However, we believe that a duty would severely
reduce the market for Canadian corn farmers and have a negative
impact on Canada's agricultural industry." 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, investors, +1-708-551-2595, or Mark
Lindley, media, +1-708-551-2602, both for Corn Products
International, Inc. Web site: http://www.cornproducts.com/
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