Corn Products International, Inc. (NYSE: CPO), a leading global
provider of agriculturally derived ingredients for diversified
markets, today reported record quarterly net income of $64 million,
or $0.85 per diluted share, for the first quarter ended March 31,
2008, a 29 percent increase compared with net income of $50
million, or $0.66 per diluted share, last year. For the ninth
consecutive quarter, net sales reached a record level. Net sales of
$931 million in the first quarter of 2008 improved 22 percent
versus $762 million in the prior-year period. The net sales growth
was predominantly the result of strong pricing actions, product mix
improvement, and favorable currency translation. Volumes fell
slightly due to lower customer demand. Gross profit of $173 million
in the first quarter of 2008 improved 18 percent compared with $146
million a year ago. Strong pricing actions and improved product mix
in North and South America were the primary contributors to the
higher gross profit dollar level. The gross margin of 18.6 percent
compared with 19.2 percent last year. Operating expenses as a
percentage of sales in the first quarter of 2008 was 7.3 percent, a
reduction versus 7.6 percent a year ago. Operating income of $107
million in the first quarter of 2008 grew 22 percent versus $88
million last year. The operating margin of 11.5 percent was
essentially unchanged from 2007. 2008 first-quarter net financing
costs declined $2.6 million from last year, of which $1.2 million
was attributable to foreign currency gains. The effective tax rate
of 33.5 percent compared with 34.0 percent last year. Regional
Business Segment Performance Regional results for the quarter ended
March 31, 2008 were as follows: North America Net sales of $537
million increased 15 percent versus $468 million in 2007 due
predominantly to improved price/product mix, along with positive
foreign currency translation. Volumes were unfavorable across the
region due primarily to poor weather conditions and the economic
softness, both of which impacted customer takeaway. All three
countries contributed to the net sales growth. Operating income of
$75 million increased 23 percent from $61 million last year. South
America Net sales of $272 million rose 36 percent compared with
$200 million a year ago as a result of favorable price/product mix
and foreign currency translation, slightly offset by lower volumes
from reduced takeaway in the Brazilian brewing segment. Operating
income of $32 million improved 29 percent from $25 million in the
prior year. Brazil and the Southern Cone delivered strong
performances. The Andean region�s performance was negatively
impacted by expenses related to the start-up of an infant food
program which is expected to become a more positive contributor
later in 2008. Asia/Africa Net sales of $122 million grew 30
percent versus $94 million last year due to strong pricing actions.
Operating income of $13 million fell 10 percent from the prior
year. Operating income improvements in Pakistan, Thailand, China
and Kenya were more than offset by a decline in South Korea�s
operating income. Excluding South Korea, the division�s operating
income increased 40 percent. Balance Sheet and Cash Flow The
Company�s balance sheet remained strong as of March 31, 2008. Net
debt (total debt less cash) of $414 million compared with $474
million at December 31, 2007 and $471 million at March 31, 2007.
Cash provided by operations for the first quarter of 2008 was $116
million compared with $58 million in the prior year. The change was
attributable to an increase in net income of $14 million and a
positive swing in working capital of $40 million. 2008 Outlook �We
have raised our 2008 EPS guidance on the strength of our first
quarter performance and the greater visibility we have on the rest
of the year,� said Sam Scott, chairman, president and chief
executive officer of Corn Products International. �We now expect a
12 to 22 percent increase in diluted EPS in 2008, or $2.90 to
$3.15, versus $2.59 in 2007, which included a 5-cent gain from our
Company�s holdings in CME Group Inc. Our prior 2008 EPS guidance
was $2.65 to $2.85. We also now believe that net sales in 2008
should reach $4 billion. �Our North and South American businesses
should continue to drive our improved performance for the balance
of 2008,� said Scott. �We still expect lower results in Asia/Africa
due to the cost and volume challenges in South Korea we have
previously discussed.� He added that results in the first half of
2008 are expected to be stronger than those in the second half due
to anticipated higher raw material costs. �We are pleased to begin
2008 with this outstanding performance, and we are excited about
our outlook for reporting another year of record results,� said
Scott. �The business model for our Company is working in this
difficult environment, and we remain focused on successfully
navigating a changing and challenging global marketplace with
steady execution and discipline.� Conference Call and Webcast Corn
Products International will conduct a conference call today at 8:30
a.m. Eastern Time (7:30 a.m. Central Time) to be hosted by Sam
Scott, chairman, president and chief executive officer, and Cheryl
Beebe, vice president and chief financial officer. The call will be
broadcast in a real-time webcast. The broadcast will consist of the
call and a visual presentation accessible through the Corn Products
International web site at www.cornproducts.com. The
�listen-and-view-only� presentation will be available to download
approximately 60 minutes prior to the start of the call. A replay
of the webcast will be available at www.cornproducts.com.
Individuals without Internet access may listen to the live
conference call by dialing 719.325.4812. A replay of the audio call
will be available through Friday, May 2 by calling 719.457.0820 and
using passcode 2471554. About the Company Corn Products
International 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, headquartered in
Westchester, Ill., is a leading worldwide supplier of dextrose and
a major regional producer of starch, high fructose corn syrup and
glucose. In 2007, Corn Products International reported record net
sales and diluted earnings per share of $3.4 billion and $2.59,
respectively, with operations in 15 countries at 35 plants,
including wholly owned businesses, affiliates and alliances. For
more information, visit www.cornproducts.com. Forward-Looking
Statement 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,� �should,� �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
release or referred to in this release 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 markets for corn and other commodities,
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; our ability to effectively integrate acquired
businesses; 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 serious communicable disease or
hostilities including acts of terrorism; and stock market
fluctuation and volatility. 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 these risks, see Risk
Factors included in our Annual Report on Form 10-K for the year
ended December 31, 2007 and subsequent reports on Forms 10-Q or
8-K. This news release also may contain references to the Company�s
long term objectives and goals or targets with respect to certain
metrics. These objectives, goals and targets are used as a
motivational and management tool and are indicative of the
Company�s long term aspirations only, and they are not intended to
constitute, nor should they be interpreted as, an estimate,
projection, forecast or prediction of the Company�s future
performance. � Corn Products International, Inc. Condensed
Consolidated Statements of Income (Unaudited) � (In millions,
except per share amounts) � � � Three Months Ended March 31, �
Change % 2008 2007 Net sales before shipping and handling costs $
991.0 $ 816.7 21 % Less: shipping and handling costs 60.1 54.8 � 10
% Net sales $ 930.9 $ 761.9 22 % Cost of sales 757.7 615.7 � 23 %
Gross profit $ 173.2 $ 146.2 18 % � Operating expenses 67.5 57.6 17
% Other income (expense), net 1.0 (0.8 ) 225 % Operating income $
106.7 $ 87.8 22 % Financing costs, net 7.3 9.9 � -26 % Income
before income taxes $ 99.4 $ 77.9 28 % Provision for income taxes
33.3 26.5 � $ 66.1 $ 51.4 29 % Minority interest in earnings 1.8
1.4 � 29 % Net income $ 64.3 $ 50.0 � 29 % � Weighted average
common shares outstanding: Basic 74.1 74.5 Diluted 75.6 76.2 �
Earnings per common share: Basic $0.87 $0.67 30 % Diluted $0.85
$0.66 29 % � CORN PRODUCTS INTERNATIONAL, INC. Condensed
Consolidated Balance Sheets � � (In millions, except share and per
share amounts) March 31, 2008 � December 31, 2007 (Unaudited) �
Assets Current assets Cash and cash equivalents $190 $175 Accounts
receivable � net 576 460 Inventories 428 427 Prepaid expenses 19 14
� Deferred income tax assets 12 � � 13 � Total current assets
$1,225 � � $1,089 � � Property, plant and equipment � net 1,531
1,500 Goodwill and other intangible assets 412 426 Deferred income
tax assets 1 1 Investments 11 13 � Other assets 74 � � 74 � Total
assets $3,254 � � $3,103 � � Liabilities and equity Current
liabilities Short-term borrowings and current portion of long-term
debt 91 130 Deferred income taxes 28 28 � Accounts payable and
accrued liabilities 531 � � 516 � Total current liabilities $650 �
� $674 � � Non-current liabilities 133 123 Long-term debt 513 519
Deferred income taxes 172 133 Minority interest in subsidiaries 21
21 Redeemable common stock (500,000 shares issued and outstanding
at March 31, 2008 and December 31, 2007) stated at redemption value
19 19 Share-based payments subject to redemption 7 9 �
Stockholders� equity Preferred stock � authorized 25,000,000
shares- $0.01 par value, none issued - - Common stock � authorized
200,000,000 shares- $0.01 par value � 74,819,774 issued at March
31, 2008 and December 31, 2007 1 1 Additional paid in capital 1,083
1,082 Less: Treasury stock (common stock; 1,409,612 and 1,568,996
shares at March 31, 2008 and December 31, 2007, respectively) at
cost (53 ) (57 ) Accumulated other comprehensive loss (42 ) (115 )
� Retained earnings 750 � � 694 � Total stockholders� equity $1,739
� � $1,605 � Total liabilities and equity $3,254 � � $3,103 � �
CORN PRODUCTS INTERNATIONAL, INC. Condensed Consolidated Statements
of Cash Flows (Unaudited) � � For the Three Months Ended March 31,
( In millions ) 2008 � � 2007 � � Cash provided by operating
activities: Net income $ 64 $ 50 Adjustments to reconcile net
income to net cash provided by (used for) operating activities:
Depreciation 32 31 Decrease (increase) in working capital 8 (32 ) �
Other 12 � � 9 � � Cash provided by operating activities 116 � � 58
� � Cash used for investing activities: Capital expenditures, net
of proceeds on disposals (48 ) (32 ) � Payments for acquisition
(net of cash acquired of $7 in 2007) - � � (59 ) � Cash used for
investing activities (48 ) � (91 ) � Cash used for financing
activities: Payments on / proceeds from borrowings, net (45 ) 2
Issuances (repurchases) of common stock, net 1 (5 ) � Dividends
paid (including to minority interest shareholders) (10 ) � (8 ) �
Cash used for financing activities (54 ) � (11 ) � � Effect of
foreign exchange rate changes on cash 1 � � - � Increase (decrease)
in cash and cash equivalents 15 (44 ) � Cash and cash equivalents,
beginning of period 175 � � 131 � � Cash and cash equivalents, end
of period $ 190 � � $ 87 � � Corn Products International, Inc.
Supplemental Financial Information (Unaudited) (In millions, except
per share amounts) � I. Geographic Information of Net Sales and
Operating Income � � � Three Months Ended March 31, Change 2008
2007 % Net Sales North America $ 536.9 $ 467.8 15 % South America
272.1 200.4 36 % Asia/Africa 121.9 � 93.7 � 30 % Total $ 930.9 � $
761.9 � 22 % � Operating Income North America $ 75.3 $ 61.1 23 %
South America 32.2 25.0 29 % Asia/Africa 12.9 14.3 -10 % Corporate
(13.7 ) (12.6 ) 9 % Total $ 106.7 � $ 87.8 � 22 % � � � II. Capital
expenditures � Capital expenditures, net of proceeds on disposals,
for the quarters ended March 31, 2008 and 2007, were $48 million
and $32 million, respectively. Capital expenditures for the full
year 2008 are estimated to be $200 million. � III. Non-GAAP
Information � The Company uses certain key metrics to better
monitor our progress towards achieving our strategic business
objectives. Among these metrics is the Total Debt to Capitalization
Percentage, which is not calculated in accordance with Generally
Accepted Accounting Principles (�GAAP�). Management believes that
this non-GAAP information provides investors with a meaningful
presentation of useful information on a basis consistent with the
way in which management monitors and evaluates the Company�s
operating performance. The information presented should not be
considered in isolation and should not be used as a substitute for
our financial results calculated under GAAP. In addition, these
non-GAAP amounts are susceptible to varying interpretations and
calculations, and the amounts presented below may not be comparable
to similarly titled measures of other companies. Our calculations
of the Total Debt to Capitalization Percentage at March 31, 2008
and December 31, 2007 are as follows: � Total Debt to
Capitalization Percentage � March 31, December 31, (Dollars in
millions) 2008 2007 � Short-term debt $91 $130 Long-term debt 513 �
519 � Total debt (a) $604 � $649 � � Deferred income tax
liabilities 172 133 Minority interest in subsidiaries 21 21
Redeemable common stock 19 19 Share-based payments subject to
redemption 7 9 Stockholders� equity 1,739 � 1,605 � Total capital
$1,958 � $1,787 � � � Total debt and capital (b) $2,562 � $2,436 �
� � Debt to capitalization percentage (a/b) 23.6 % 26.6 %
Corn Products (NYSE:CPO)
Historical Stock Chart
From May 2024 to Jun 2024
Corn Products (NYSE:CPO)
Historical Stock Chart
From Jun 2023 to Jun 2024