WESTCHESTER, Ill., Sept. 22 /PRNewswire-FirstCall/ -- Corn Products
International, Inc. (NYSE: CPO) today announced that it is revising its 2005
outlook. The Company expects 2005 earnings per diluted share to be in the
range of $1.16 to $1.22, compared to $1.25 in 2004. The previous outlook was
in the range of $1.34 to $1.44.
Commenting on the change in outlook, Sam Scott, chairman, president and
chief executive officer, cited two primary factors:
An increase in the Company's estimated effective tax rate.
The Company's US business is incurring additional energy and related costs
at its Argo manufacturing facility. The Company's most recent 2005 earnings
outlook, as stated in its second quarter 2005 earnings press release, was
based on the expectation that its existing coal boilers, which are in the
process of being replaced, would continue to operate at the then current rate.
Unfortunately, third quarter boiler performance has been far less reliable
than during the first half of this year and throughout 2004. This has
required substantially increased use of a backup natural gas boiler at the
same time that natural gas costs have increased to all-time highs. For the
foreseeable future, the Company intends to operate its Argo plant with less
coal and more natural gas to minimize unplanned boiler outages. The Company
is taking this action, along with other steps, to improve the coal boilers'
reliability during the interim period until the new coal boiler is up and
running as expected in the third quarter of next year.
The change in mix between expected US income and foreign income has also
impacted the Company's estimated effective tax rate for 2005. The current
earnings outlook of $1.16 to $1.22 per diluted share incorporates an effective
tax rate of 38.5 percent, up from 34.5 percent used for the previous guidance,
and up from 30 percent last year.
Slightly less than half of the $.18 to $.22 per diluted share reduction in
the Company's earnings outlook is attributable to the change in the estimated
effective tax rate from 34.5 percent to 38.5 percent.
The Company will hold an analyst conference call at 7:30 a.m. CT on
Thursday, September 22, 2005. The call will be broadcast in a real-time
webcast available to the public at the Corn Products International web site,
http://www.cornproducts.com. The call will be available at
http://www.cornproducts.com for seven days. Please note that this is a
ABOUT THE COMPANY
Corn Products International, Inc. is one of the world's largest corn
refiners and a major supplier of high-quality food ingredients and industrial
products derived from the wet milling and processing of corn and other starch-
based materials. The Company is the number-one worldwide producer of dextrose
and a leading regional producer of starch, high fructose corn syrup and
glucose. In 2004, the Company recorded net sales of $2.3 billion with
operations in 16 countries at 34 plants, including wholly owned businesses,
affiliates and alliances. Headquartered in Westchester, Ill., it was founded
in 1906. The Company is listed on the New York Stock Exchange under the
symbol CPO. Additional information can be found on the World Wide Web at
This news release contains or may contain forward-looking statements
within the meaning of Section 27A of the Securities Exchange Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. The Company intends these
forward looking statements to be covered by the safe harbor provisions for
such statements. These statements include, among other things, any
predictions regarding the Company's future financial condition, earnings,
revenues, expenses or other financial items, any statements concerning the
Company's prospects or future operation, including management's plans or
strategies and objectives therefor and any assumptions underlying the
foregoing. These statements can sometimes be identified by the use of forward
looking words such as "may," "will," "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 report or referred to or
incorporated by reference into this report are "forward-looking statements."
These statements are subject to certain inherent risks and uncertainties.
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
conveyed in these statements, based on various factors, including fluctuations
in worldwide commodities markets and the associated risks of hedging against
such fluctuations; fluctuations in aggregate industry supply and market
demand; general political, economic, business, market and weather conditions
in the various geographic regions and countries in which we manufacture and/or
sell our products; fluctuations in the value of local currencies, energy costs
and availability, freight and shipping costs, and changes in regulatory
controls regarding quotas, tariffs, duties, taxes and income tax rates;
operating difficulties, including boiler reliability; labor disputes; genetic
and biotechnology issues; changing consumption preferences and trends;
increased competitive and/or customer pressure in the corn-refining industry;
the outbreak or continuation of hostilities including acts of terrorism; stock
market fluctuation and volatility; and the resolution of the uncertainties
resulting from the Mexican HFCS tax. 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. 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
certain risk factors, see the Company's most recently filed Annual Report on
Form 10-K and subsequent reports on Forms 10-Q or 8-K.
SOURCE Corn Products International, Inc.
Richard Vandervoort, +1-708-551-2595, (investors)
or Mark Lindley, +1-708-551-2602 (media)
both for Corn Products International, Inc.
Web site: http://www.cornproducts.com