CPO Ingredion, Inc.

Corn Products International, Inc. Reports Record First Quarter 2004 Earnings $0.70 Per-Share Earnings Establish Quarterly High; Company Forecasts Mid Double-digit Growth in 2004 WESTCHESTER, Ill., April 20 /PRNewswire-FirstCall/ -- Corn Products International, Inc. today announced first quarter 2004 results. For the quarter ended March 31, 2004, the Company reported diluted earnings of $0.70 per share, an 84-percent increase over diluted earnings of $0.38 per share in the first quarter of 2003. "Increased volumes, improved price/product mix and strong currencies all contributed to an outstanding quarter for our Company," said Sam Scott, chairman, president and chief executive officer of Corn Products International. "At the same time, our ongoing focus on costs is reflected in our bottom-line results, as both gross margin and operating margin continue the upward trend that we established over the previous year." Scott noted that gross corn costs were higher in the first quarter of 2004 than they were in the year-ago period. He also predicted that the first- quarter 2004 corn costs would likely be the lowest that the Company will experience this year. The Company's results for the first quarter of 2004, compared with the prior year period, were as follows: -- Net sales were $550 million, up from $479 million -- Operating income was $54 million, up from $36 million -- Net income was $26 million, up from $14 million BUSINESS BREAKDOWN BY REGION On a regional basis, results for the first quarter of 2004, compared with the prior year period, were as follows: In North America: -- Net sales were $339 million, up from $307 million -- Volume increased 5 percent -- Operating income was $24 million, up from $12 million The significant increase in net sales and operating income primarily reflected improved price/product mix across the region, with the greatest impact to the Mexican and Canadian operating results. Strong volume growth in the United States and Mexico and the favorable Canadian dollar also contributed to the quarter. The Company believes that this quarter's results are a better reflection of the North America operating income run rate, over time, than the comparable period last year, which was the softest quarter of the year 2003. The bilateral trade negotiations to resolve the Government of Mexico's tax on beverages sweetened with high fructose corn syrup are continuing. The Company supports those ongoing negotiations. In South America: -- Net sales were $136 million, up from $105 million -- Volume increased 17 percent -- Operating income was $23 million, up from $16 million The rise in net sales and operating income primarily reflects strong volume growth, which outpaced economic performance throughout the region. Net sales were also favorably affected by the revaluation of the South American currencies. The comparable period last year was the weakest of the four quarters. In Asia/Africa: -- Net sales were $75 million, up from $67 million -- Volume improved 7 percent -- Operating income was $17 million, up from $14 million Volume growth, improved price/product mix and strong Asian currencies drove the increase in net sales and operating income in this region. The Company's new glucose refinery in Thailand, which came on line in 2003, contributed to the region's volume and margin gains during the quarter. On a corporate level, financing costs for the first quarter of 2004 totaled $9 million, consistent with the first quarter of 2003. The Company's effective income tax rate of 36 percent for the first quarter was unchanged from the prior year. Cash provided by operations for the first quarter of 2004 totaled $75 million, up $78 million from the year-ago period, driven by a $62-million improvement from changes in working capital. Total debt was $539 million at March 31, 2004, down from $550 million at December 31, 2003. OUTLOOK "We are confident that our business will grow in 2004, with a very strong first half," said Scott. "While we expect corn and energy costs to increase, we also anticipate continuing improvement throughout our global business. "For the full year 2004, we anticipate diluted earnings per share to increase 12 to 17 percent over 2003," Scott said. ABOUT CORN PRODUCTS INTERNATIONAL, INC. 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 2003, the Company recorded net sales of $2.1 billion with operations in 19 countries at 37 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 press release contains or may contain forward-looking statements concerning the Company's financial position, business and future earnings and prospects, in addition to other statements using words such as "anticipate," "believe," "plan," "estimate," "expect," "intend" and other similar expressions. These statements contain 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 sell our products, including fluctuations in the value of local currencies, energy costs and availability and changes in regulatory controls regarding quotas, tariffs, taxes and biotechnology issues; increased competitive and/or customer pressure in the corn-refining industry; the outbreak or continuation of hostilities; stock market fluctuation and volatility; and the resolution of the current uncertainties relating to 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 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. CORN PRODUCTS INTERNATIONAL, INC. Condensed Consolidated Statements of Income (Unaudited) (All figures are in millions, except per share amounts) Three Months Ended March 31, Change % 2004 2003 Net sales before shipping and handling costs $592.3 $518.0 14% Less: shipping and handling costs 41.9 38.6 9% Net sales 550.4 479.4 15% Cost of sales 455.9 410.6 11% Gross profit 94.5 68.8 37% Operating expenses 40.3 34.6 16% Other income, net - 1.3 -100% Operating income 54.2 35.5 53% Financing costs 9.5 9.2 3% Income before taxes 44.7 26.3 70% Provision for income taxes 16.1 9.5 28.6 16.8 70% Minority interest in earnings 2.9 3.2 -9% Net income $25.7 $13.6 89% Weighted average common shares outstanding: Basic 36.2 35.7 Diluted 36.7 35.9 Earnings per common share: Basic $0.71 $0.38 87% Diluted $0.70 $0.38 84% CORN PRODUCTS INTERNATIONAL, INC. Condensed Consolidated Balance Sheets (In millions, except share amounts) March 31, December 31, 2004 2003 (Unaudited) Assets Current assets Cash and cash equivalents $115 $70 Accounts receivable - net 306 252 Inventories 196 215 Prepaid expenses 14 10 Total current assets 631 547 Property, plant and equipment - net 1,180 1,187 Goodwill and other intangible assets 327 319 Deferred income tax assets 58 61 Investments 28 29 Other assets 63 67 Total assets $2,287 $2,210 Liabilities and Equity Current liabilities Short-term borrowings and current portion of long-term debt $87 $98 Accounts payable and accrued liabilities 305 296 Total current liabilities 392 394 Non-current liabilities 117 112 Long-term debt 452 452 Deferred income taxes 208 196 Minority interest in subsidiaries 76 78 Redeemable common stock (1,913,500 shares issued at March 31, 2004 and December 31, 2003) stated at redemption price 74 67 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 - 35,746,387 issued at March 31, 2004 and December 31, 2003 1 1 Additional paid in capital 999 1,006 Less: Treasury stock (common stock; 1,333,998 and 1,494,101 shares on March 31, 2004 and December 31, 2003, respectively) at cost (31) (35) Deferred compensation - restricted stock (2) (3) Accumulated other comprehensive loss (305) (343) Retained earnings 306 285 Total stockholders' equity 968 911 Total liabilities and equity $2,287 $2,210 CORN PRODUCTS INTERNATIONAL, INC. Condensed Consolidated Statements of Cash Flows (Unaudited) For The Three Months Ended March 31, (In millions) 2004 2003 Cash provided by (used for) operating activities: Net income $26 $14 Adjustments to reconcile net income to net cash provided by (used for) operating activities: Depreciation and amortization 25 25 Decrease (increase) in trade working capital 15 (47) Other 9 5 Cash provided by (used for) operating activities 75 (3) Cash provided by (used for) investing activities: Capital expenditures, net of proceeds on disposal (15) (7) Payments for acquisitions - (48) Other 1 - Cash used for investing activities (14) (55) Cash provided by (used for) financing activities: (Payments on) proceeds from borrowings, net (16) 64 Issuance of common stock 4 - Dividends paid (4) (4) Cash (used for) provided by financing activities (16) 60 Effect of foreign exchange rate changes on cash - 1 Increase in cash and cash equivalents 45 3 Cash and cash equivalents, beginning of period 70 36 Cash and cash equivalents, end of period $115 $39 CORN PRODUCTS INTERNATIONAL, INC. Supplemental Financial Information (Unaudited) (Dollars in millions, except per share amounts) I. Geographic Information of Net Sales and Operating Income Three Months Ended Change March 31, 2004 2003 % Net sales North America $338.9 $307.3 10% South America 135.9 105.4 29% Asia/Africa 75.6 66.7 13% Total $550.4 $479.4 15% Operating income North America $24.0 $11.9 102% South America 23.4 16.3 44% Asia/Africa 16.6 13.5 23% Corporate (9.8) (6.2) 58% Total $54.2 $35.5 53% II. Estimated Source of Diluted Earnings Per Share for the Three Months Ended March 31 The following is a list of the major items that impacted first quarter results. The amounts are calculated on a net after-tax basis and attempt to estimate total business effects. Earnings Per Share Three Months Earnings Per Share - March 31, 2003 $0.38 Change Volumes 0.12 Operating margin 0.13 Foreign currency translation 0.08 Financing costs (0.01) Minority interest 0.01 Shares outstanding (0.01) Net change 0.32 Earnings Per Share - March 31, 2004 $0.70 III. Capital Expenditures Capital expenditures were $15 million and $7 million for the quarters ended March 31, 2004 and 2003, respectively. DATASOURCE: Corn Products International, Inc. CONTACT: investors, Richard Vandervoort, +1-708-551-2595, or media, Mark Lindley, +1-708-551-2602, both of Corn Products International, Inc. Web site: http://www.cornproducts.com/

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