Corn Products International, Inc. Announces Manufacturing Optimization Plans; Two Plants Scheduled for Closure
November 23 2004 - 5:13PM
PR Newswire (US)
Corn Products International, Inc. Announces Manufacturing
Optimization Plans; Two Plants Scheduled for Closure WESTCHESTER,
Ill., Nov. 23 /PRNewswire-FirstCall/ -- Corn Products
International, Inc. (NYSE:CPO) today announced plans to permanently
close two of its corn refining facilities, one in North America and
one in South America. The Company plans to close one of its starch
plants in Guadalajara, Mexico (Cisne), the smallest of its four
plants in Mexico, and one of its facilities in the Company's Andean
region in South America. Production from the Cisne plant will be
transferred to the Company's remaining corn refining plants in
Mexico; production from the Andean region facility will be
transferred to the Company's recently expanded corn refining
facility in Cali, Colombia. The closings, which are scheduled to
become effective during the fourth quarter, will result in a
one-time charge of approximately $20.5 million ($13.7 million after
tax), or $0.37 on a diluted earnings per share basis, to be taken
in the fourth quarter of 2004. The charge includes a write-off of
fixed assets of $18 million, and $2.5 million for employee
termination costs. "The expected efficiency gains from this action
support our Company's goal of excelling at our base business, the
first plank in the multiple pathway strategy that we announced this
year," said Sam Scott, chairman, president and chief executive
officer of Corn Products International. 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 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/or
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 income tax rates;
labor disputes; 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
current 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 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:
Investors, Richard M. 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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