Thursday, February 6, 2014 8:00 a.m. CT
RSS delivers new content to you on the topics in which you are interested. You can subscribe to RSS feeds through a RSS compatible browser or stand-alone RSS feed reader / aggregator.
You may automatically receive information by e-mail.
To choose your options for e-mail notification, please enter your e-mail address and click Submit.
WESTCHESTER, Ill., February 6, 2014 - Ingredion Incorporated (NYSE: INGR), a leading global provider of ingredient solutions to diversified industries, today reported results for the fourth quarter 2013.
"We concluded 2013 on a positive note as we delivered a quarter largely in-line with our expectations," said Ilene Gordon, chairman, president and chief executive officer. "Notably, Asia Pacific achieved volume and operating income growth in the quarter and record operating income for the full year, and South American volumes in the quarter were positive for the first time this year. These positives were offset by continuing cost pressures and foreign exchange headwinds in South America, particularly Argentina, as well as volume softness in North America that led to unfavorable fixed cost absorption.
"At the same time, we repurchased 2.5 million shares, bringing our total buyback in 2013 to 3.4 million shares. We also raised our dividend by more than 60 percent in 2013. We plan to continue to appropriately return capital to shareholders while also maintaining a strong balance sheet that leaves us well positioned for future growth.
"As we look ahead to 2014, we expect to return to earnings per share growth. In 2014, the primary drivers of the bottom line growth should be improved performance in all four regions. We will also benefit from the accretion derived from our significant share repurchase late in 2013," Gordon added.
Earnings Per Share (EPS)
4Q12 | 4Q13 | 2012 | 2013 | ||
Reported EPS | $1.42 | $1.35 | $5.47 | $5.05 | |
Restructuring/impairment | 0.11 | - | 0.29 | - | |
Integration costs | - | - | 0.03 | - | |
Reversal of Korean tax valuation allowance | - | - | (0.16) | - | |
Change in benefit plan | (0.04) | - | (0.04) | - | |
Sale of land | (0.02) | - | (0.02) | - | |
Adjusted EPS | $1.47 | $1.35 | $5.57 | $5.05 |
Estimated factors affecting change in adjusted EPS
4Q13 | 2013 | ||
Margin | (0.12) | (0.42) | |
Volume | (0.05) | (0.20) | |
Foreign exchange | (0.07) | (0.19) | |
Other income | 0.01 | 0.02 | |
Total operating items | (0.23) | (0.79) | |
Financing costs | (0.01) | 0.01 | |
Shares outstanding | 0.03 | (0.01) | |
Tax rate | 0.10 | 0.29 | |
Non-controlling interest | (0.01) | (0.02) | |
Total non-operating items | 0.11 | 0.27 | |
Total items affecting EPS | (0.12) | (0.52) |
Financial Highlights
Business Review
Total Ingredion
$ in millions | 2012 Net sales | FX Impact | Volume | Price/mix | 2013 Net sales | % change |
Fourth quarter | 1,644 | -61 | -47 | -37 | 1,499 | -9% |
Full year | 6,532 | -183 | -197 | 176 | 6,328 | -3% |
Fourth quarter 2013
Full year 2013
North America
$ in millions | 2012 Net sales | FX Impact | Volume | Price/mix | 2013 Net sales | % change |
Fourth quarter | 923 | -6 | -59 | -46 | 812 | -12% |
Full year | 3,741 | -16 | -157 | 79 | 3,647 | -3% |
Fourth quarter 2013
Full year 2013
South America
$ in millions | 2012 Net sales | FX Impact | Volume | Price/mix | 2013 Net sales | % change |
Fourth quarter | 383 | -44 | 10 | -8 | 341 | -11% |
Full year | 1,462 | -144 | -33 | 49 | 1,334 | -9% |
Fourth quarter 2013
Full year 2013
Asia Pacific
$ in millions | 2012 Net sales | FX Impact | Volume | Price/mix | 2013 Net sales | % change |
Fourth quarter | 203 | -6 | 3 | 5 | 205 | 1% |
Full year | 816 | -5 | -13 | 7 | 805 | -1% |
Fourth quarter 2013
Full year 2013
Europe, Middle East, Africa (EMEA)
$ in millions | 2012 Net sales | FX Impact | Volume | Price/mix | 2013 Net sales | % change |
Fourth quarter | 135 | -5 | -2 | 13 | 141 | +5% |
Full year | 513 | -17 | 6 | 40 | 542 | +6% |
Fourth quarter 2013
Full year 2013
2014 Guidance
2014 EPS is expected to be in a range of $5.35 to $5.75 compared to $5.05 in 2013. The guidance anticipates ongoing cost pressures and currency headwinds in Argentina; a challenging environment as sugar prices remain low; and, an effective tax rate of 27 - 28 percent. All four regions are expected to deliver increased operating income. However, as a result of lower input costs, sales are expected to drop significantly for the total Company.
Cash generated by operations is expected to be approximately $700 - 750 million in 2014.
Capital expenditures in 2014 are anticipated to be approximately $300 - $350 million. These investments will support growth and cost reduction actions across the organization.
Conference Call and Webcast
Ingredion will conduct a conference call today at 9:00 a.m. Eastern Time (8:00 a.m. Central Time) to be hosted by Ilene Gordon, chairman, president and chief executive officer, and Jack Fortnum, 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 Ingredion web site at www.ingredion.com. The 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.ingredion.com.
ABOUT THE COMPANY
Ingredion Incorporated (NYSE:INGR) is a leading global ingredients solutions provider specializing in nature-based sweeteners, starches and nutrition ingredients. With customers in more than 40 countries, Ingredion serves approximately 60 diverse sectors in food, beverage, brewing, pharmaceuticals and other industries. For more information, visit www.ingredion.com.
Forward-Looking Statements
This news release contains or may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends these forward-looking statements to be covered by the safe harbor provisions for such statements.
Forward-looking statements include, among other things, any statements regarding the Company's prospects or future financial condition, earnings, revenues, tax rates, capital expenditures, expenses or other financial items, any statements concerning the Company's prospects or future operations, including management's plans or strategies and objectives therefor and any assumptions, expectations or beliefs 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," "outlook" 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 based on current expectations, but are subject to certain inherent risks and uncertainties, many of which are difficult to predict and are beyond our control. 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 expressed in or implied by these statements, based on various factors, including the effects of global economic conditions, including, particularly, continuation or worsening of the current economic, currency and political conditions in South America and economic conditions in Europe, and their impact on our sales volumes and pricing of our products, our ability to collect our receivables from customers and our ability to raise funds at reasonable rates; fluctuations in worldwide markets for corn and other commodities, and the associated risks of hedging against such fluctuations; fluctuations in the markets and prices for our co-products, particularly corn oil; fluctuations in aggregate industry supply and market demand; the behavior of financial markets, including foreign currency fluctuations and fluctuations in interest and exchange rates; continued volatility and turmoil in the capital markets; the commercial and consumer credit environment; general political, economic, business, market and weather conditions in the various geographic regions and countries in which we buy our raw materials or manufacture or sell our products; future financial performance of major industries which we serve, including, without limitation, the food and beverage, pharmaceuticals, paper, corrugated, textile and brewing industries; energy costs and availability, freight and shipping costs, and changes in regulatory controls regarding quotas, tariffs, duties, taxes and income tax rates; operating difficulties; availability of raw materials, including tapioca and the specific varieties of corn upon which our products are based; energy issues in Pakistan; boiler reliability; our ability to effectively integrate and operate acquired businesses; our ability to achieve budgets and to realize expected synergies; our ability to complete planned maintenance and investment projects successfully and on budget; labor disputes; genetic and biotechnology issues; changing consumption preferences including those relating to high fructose corn syrup; increased competitive and/or customer pressure in the corn-refining industry; and the outbreak or continuation of serious communicable disease or hostilities including acts of terrorism.
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 as a result of new information or future events or developments. 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 and other risks, see "Risk Factors" included in our Annual Report on Form 10-K for the year ended December 31, 2012 and subsequent reports on Forms 10-Q and 8-K.
WESTCHESTER, Ill., January 8, 2014 - Ingredion Incorporated (NYSE: INGR), a leading global provider of ingredient solutions to diversified industries, will release its 2013 fourth-quarter and full year financial results for the period ended December 31, 2013, before the market opens on Thursday, February 6, 2014.
Ingredion will conduct a conference call on February 6 at 8:00 a.m. CST, during which Ilene Gordon, chairman, president and chief executive officer, and Jack Fortnum, executive vice president and chief financial officer, will discuss the quarterly and full year results. The conference call and accompanying slide presentation will be broadcast live on the Company's website, www.ingredion.com, in the "Investor Relations" section. Participants are encouraged to log onto the webcast link approximately 10 minutes prior to the start of the presentation. A replay of the presentation will also be available on the Company's website.
ABOUT THE COMPANY
Ingredion Incorporated (NYSE: INGR) is a leading global ingredients solutions provider specializing in nature-based sweeteners, starches and nutrition ingredients. With customers in more than 40 countries, Ingredion serves approximately 60 diverse sectors in food, beverage, brewing, pharmaceuticals and other industries. For more information, visit ingredion.com.
CONTACT:
Investors: Aaron Hoffman, 708-551-2592
Media: Claire Regan, 708-551-2602