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|INGREDION INCORPORATED REPORTS STRONG FIRST QUARTER 2016 RESULTS|
WESTCHESTER, Ill., April 28, 2016 - Ingredion Incorporated (NYSE: INGR), a leading global provider of ingredient solutions to diversified industries, today reported results for the first quarter 2016.
"We delivered another strong quarter with solid operating income and earnings per share and continued progress on our strategic blueprint. Acquisition-related volume, more favorable price/product mix in both our specialty and core ingredients as well as margin expansion propelled by our global optimization efforts and Penford cost synergies all contributed to increases in operating income and earnings per share," said Ilene Gordon, chairman, president and chief executive officer. "As expected, North America, Asia Pacific and EMEA achieved solid operating income growth for the quarter while South American operating income was lower than the prior year as the region faced slowing economies and foreign-exchange headwinds.
"We continue our strategic journey to becoming a leading global ingredient company, and the ground work we laid over the past several years continued to drive robust operating results. As a result, we expect another strong year and are raising our anticipated 2016 adjusted EPS to a range from $6.45 to $6.75," Gordon added.
Diluted Earnings Per Share (EPS)
*Totals may not foot due to rounding
Estimated factors affecting change in adjusted EPS
Europe, Middle East, Africa (EMEA)
2016 adjusted EPS, excluding acquisition-related and integration costs and impairment and restructuring costs, is expected to be in the range of $6.45 to $6.75 compared to adjusted EPS of $5.88 in 2015. The full-year guidance assumes, compared to last year: overall improvement in North America, Asia Pacific and EMEA,and South America modestly down given the macroeconomic environment; an effective tax rate of approximately 30-32 percent; and continued trade up in our portfolio, including higher-value specialty ingredients, leading to margin expansion.
In 2016, cash generated by operations is expected to be in the range of $700 million to $750 million and capital expenditures are anticipated to be $300 million.
Conference Call and Webcast
The call will be webcast in real time, and will include a visual presentation accessible through the Ingredion website at www.ingredion.com. The presentation will be available to download a few hours prior to the start of the call. A replay of the webcast will be available at www.ingredion.com.
ABOUT THE COMPANY
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," "assume", "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 circumstances or 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; 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, paper, corrugated, 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 potato starch, 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, including the Penford business; 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, 2015 and subsequent reports on Forms 10-Q and 8-K.
Investors: Heather Kos, 708-551-2592
Media: Claire Regan, 708-551-2602