WESTCHESTER, Ill., Jan. 30 /PRNewswire-FirstCall/ -- Corn Products
International, Inc. (NYSE: CPO), a leading global provider of agriculturally
derived ingredients for diversified markets, today announced that it expects
2007 diluted earnings per share to increase in a range of 13 to 23 percent, or
$1.84 to $2.01, compared with record diluted earnings per share of $1.63 in
2006 reported by the Company today.
"This increase would mean another record performance and keep us on track
to meet our stated goal of low double-digit EPS growth during the
five-year period of 2003-2008," said Sam Scott, chairman, president and chief
executive officer of Corn Products International. "Just as important, we also
expect to reach our return on capital employed target."
Scott said expectations for another strong performance from the North
America region should be the major driver for the Company's 2007 outlook. He
added that all three geographic regions are expected to contribute to the
"Our US and Canadian businesses have again achieved significantly higher
contract pricing in 2007 across their starch and sweeteners book of business,"
said Scott. "This represents a high-teens percentage increase for our entire
US and Canadian businesses. Our firm-price and fee-based book of business in
both the US and Canada is appropriately hedged, consistent with our stated
policy. Open risks relate to co-product values and the corn basis."
South America should deliver improved results in 2007 primarily from a
continuing recovery in Brazil, the region's largest country market, which
began in the second half of 2006. The acquisition of Peruvian corn refiner
DEMSA and the pending purchase of the remaining 50 percent of the Getec
Brazilian joint venture should help the region's performance.
Asia/Africa's 2007 performance also is expected to show growth from a
continuation of strong results in Pakistan and improvement in Thailand and
"With respect to the corn risk in our international operations," Scott
said, "we believe our business model should enable us to pass through
increasing corn prices as the year progresses.
"We see continuing progress on our Company's five-step Pathway Strategy in
2007, the fourth year of our global growth and value creation initiative,"
Scott said, "as we pursue our mission to be the premier regional provider of
refined, agriculturally based products and ingredients worldwide."
He added that planned capital expenditures of approximately $145 million
in 2007 reflect the attractive opportunities the Company has to invest in its
businesses around the world.
Scott also pointed to the Company's recent announcement of a definitive
agreement to acquire the food business of SPI Polyols, which includes the
remaining 50 percent share of the Getec Brazilian joint venture. The combined
annual sales from this transaction should be nearly $100 million. The
acquisition, which is expected to be accretive to earnings per share in the
first year, should strengthen the Company's sweeteners platform and reinforce
elements of the Pathway Strategy to expand the value-added ingredients
portfolio in growth markets.
"We see 2007 as a year with much promise as well as a number of key
challenges, including the management of global corn price risks and the
integration of acquisitions," Scott concluded. "All in all, we are optimistic
about our prospects for further growth and expansion in the year ahead."
Conference Call and Webcast
Corn Products International will conduct a conference call today at 8:30
a.m. Eastern Time (7:30 a.m. Central Time) to be hosted by Sam Scott,
chairman, president and chief executive officer, and Cheryl Beebe, vice
president and 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 Corn
Products International web site at www.cornproducts.com. The
"listen-and-view-only" 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.cornproducts.com.
Individuals without Internet access may listen to the live conference call
by dialing 719.457.2626. A replay of the audio call will be available through
Friday, February 9 by calling 719.457.0820 and using passcode 7992482.
About the Company
Corn Products International 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, headquartered in Westchester, Ill., is the number-one
worldwide producer of dextrose and a leading regional producer of starch, high
fructose corn syrup and glucose. In 2006, Corn Products International reported
net sales of $2.62 billion with operations in 15 countries at 33 plants,
including wholly owned businesses, affiliates and alliances. For more
information, visit www.cornproducts.com.
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 therefore and any assumptions 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 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
markets for corn and other commodities, 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; boiler reliability; our ability to
effectively integrate acquired businesses; 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 serious communicable disease or hostilities
including acts of terrorism; stock market fluctuation and volatility; and our
ability to maintain sales levels of HFCS in Mexico. 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 these risks, see Risk Factors included in our Annual Report on
Form 10-K for the year ended December 31, 2005 and subsequent reports on Forms
10-Q or 8-K. This news release also may contain references to the Company's
long term objectives and goals or targets with respect to certain metrics.
These objectives, goals and targets are used as a motivational and management
tool and are indicative of the Company's long term aspirations only, and they
are not intended to constitute, nor should they be interpreted as, an
estimate, projection, forecast or prediction of the Company's future
CONTACT: Investor, Dave Prichard, +1-708-551-2592, or Media, Mark
Lindley, +1-708-551-2602, for Corn Products International, Inc.