Corn Products income up sharply in quarter
May 2, 2011
by Eric Schroeder
WESTCHESTER, ILL. — Net income of Corn Products International, Inc. in the first quarter ended March 31 was $153.6 million, equal to $2.01 per share on the common stock, up 254% from $43.4 million, or 58c per share, in the same period a year ago. Net sales were $1,459.5 million, up 56% from $937.2 million.
Excluding a gain relating to the payment from the Government of Mexico to settle a North American Free Trade Agreement dispute as well as restructuring and integration items in both years, adjusted earnings per share rose 103% in the quarter to $1.28 from 63c in the same period of fiscal 2010.
“Corn Products delivered a very strong first quarter as we benefited from good performance across the entire business, including the recently acquired National Starch,” said Ilene Gordon, chairman, president and chief executive officer. “These results reflect the strength of our business model, which takes a regional approach with a global perspective combined with a prudent commodity risk management philosophy to deliver long-term performance. Looking ahead, we continue to expect another year of earnings growth. We also plan to continue to invest in our business for future growth through capital expansions in key markets like Brazil, cost savings programs, and new product development leveraging our acquired R.&D. capability.”
First-quarter operating income was $100.6 million in the North American Division, up 162% from $38.4 million in the same period of fiscal 2010. Corn Products attributed the gain to positive price/mix in the United States, Mexico and Canada and incremental operating income from the National Starch business. Net sales were $779.8 million, up 44% from $540.6 million a year ago.
In South America, operating income rose 27% to $49.2 million, while sales increased 32% to $367.7 million. Corn Products attributed the sales increase from a $57 million in price/mix, $20 million of incremental volume, including $19 million from National Starch, and $13 million of favorable foreign exchange rates.
Operating income within Asia Pacific was $19.1 million, up 185% from $6.7 million a year ago. Net sales were $182 million, up 133% from $78.2 million.
Europe, Middle East, Africa (EMEA) posted operating income of $21.6 million, up 238% from $6.4 million. Sales also rose sharply, climbing to $130 million from $40.7 million.