Fiscal year profit jumps 60% for Corn Products
February 05, 2008
by Jeff Gelski
WESTCHESTER, ILL. — Fiscal year net income at Corn Products International, Inc. soared 60% to $197.8 million, equal to $2.65 per share on the common stock, up from $123.5 million, or $1.67 per share, in the previous year. The 2007 fiscal year results included a 5c gain from the company’s holdings in CME Group, Inc.
Net sales for the 2007 fiscal year increased 29% to $3,390.9 million from $2,620.6 million in the previous year. Favorable price/product mix was a primary reason for the sales increase along with currency translations and slightly higher volumes.
For fiscal year 2008, Corn Products estimates earnings per share to be in the range of $2.65 to $2.85 and net sales of $3.7 billion.
In North America, Westchester-based Corn Products reported 2007 fiscal year net sales of $2.05 billion, a 29% increase from $1.59 billion in fiscal year 2006. Improved price/product mix primarily drove the increase. The acquisition of SPI Polyols contributed $40 million in net sales in 2007. Operating income of $234 million in fiscal year 2007 marked an improvement from $130 million in fiscal year 2006.
Companywide in the fourth quarter ended Dec. 31, Corn Products posted net income of $46.1 million, or 62c per share, which compared with $32.9 million, or 44c per share, in the previous year’s fourth quarter. Fourth-quarter net sales rose 30% to $895 million from $687 million.
Corn Products’ stock was trading at $37.25 per share on the New York Stock Exchange late in the morning of Feb. 5, up more than 7% from a Feb. 4 closing price of $34.71 per share.