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|Ingredion Incorporated Reports Strong Second Quarter 2012 Results|
WESTCHESTER, Ill., July 31, 2012 - Ingredion Incorporated (NYSE: INGR), a leading global provider of ingredient solutions to diversified industries, today reported results for the second quarter 2012.
"We delivered a strong second quarter in spite of some macroeconomic volatility and this should set us up to achieve our full year guidance," said Ilene Gordon, chairman, president and chief executive officer. "Our second quarter earnings per share was the highest adjusted quarterly result in our company's history. Underlying this performance are volume improvement and manufacturing efficiencies as well as appropriate price increases to cover higher raw material costs and foreign exchange headwinds. We continue to have a positive outlook for 2012 and expect sales and adjusted EPS improvement compared to 2011.
"Our business model has proven resilient and has mitigated some of the volatility we've faced while allowing us to still generate volume and EPS growth," Gordon added.
Earnings per share (EPS)
Second quarter diluted EPS rose 39 percent to $1.40 compared to $1.01 last year. The second quarter of 2012 included a $0.16 per share benefit from the release of a Korean deferred tax valuation allowance that was partially offset by $0.08 of restructuring and impairment charges and $0.01 of business integration costs. The second quarter of 2011 included $0.07 of integration costs and $0.02 of restructuring charges. Excluding these items, adjusted EPS increased 21 percent from $1.10 to $1.33 in the quarter. The estimated drivers of the increase in 2012 adjusted EPS were $0.25 from margin, $0.03 from higher volumes, and $0.03 of non-operational items partially offset by $0.08 from currency headwinds.
First half diluted EPS fell 12 percent to $2.61 compared to $2.97 last year. The first half of 2012 included a $0.16 per share benefit from the release of a Korean deferred tax valuation allowance that was largely offset by $0.11 of restructuring and impairment charges and $0.03 of business integration costs. The first half of 2011 included a $0.75 gain from a NAFTA settlement with the government of Mexico, partially offset by $0.13 of integration costs and $0.02 of restructuring charges. Excluding these items, adjusted EPS increased 9 percent from $2.37 to $2.59 in the first half.
Europe, Middle East, Africa (EMEA)
The effective tax rate for 2012 is estimated to be between 31 percent and 33 percent, which excludes discrete items.
Capital expenditures in 2012 are anticipated to be between $275 million and $325 million and should support growth investments across the organization, particularly in North America, South America and EMEA.
Conference Call and Webcast
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
Corn Products International, Inc. is now Ingredion Incorporated (NYSE:INGR). The Company 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.
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" 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 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, including continuation or worsening of the current severe drought conditions in the U.S.; 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(availability of specific varieties of corn upon which certain of our products are based will be impacted by current severe drought conditions in the U.S., which both reduce yields and increase the corn plants' susceptibility to disease); energy issues in Pakistan; boiler reliability; our ability to effectively integrate and operate acquired businesses, including National Starch; 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, 2011 and subsequent reports on Forms 10-Q and 8-K.
Investors: Aaron Hoffman, 708-551-2592
Media: Claire Regan, 708-551-2602