February 10, 2012

Corn Products International Inc posted an 83% jump in fourth-quarter earnings, backed by strong sales growth across its geographic regions particularly in the North American market.

The food-ingredient maker also updated its earnings outlook for the year, calling for a per-share profit of US$5-5.25, compared with the roughly US$5 per-share profit it had estimated in October. Net sales for the year are estimated at US$7 billion, topping the US$6.75 billion in sales currently expected by analysts polled by Thomson Reuters.

"As we look forward to 2012, we believe that we are well positioned to deliver further top and bottom line growth while building on our strong geographic positions and expanding our product portfolio of starch and sweetener ingredients," said Chief Executive Ilene Gordon.

Corn Products, which supplies sweeteners and starches to food processors and industrial customers, has seen its profits soar in recent quarters as it has been able to offset rising corn costs with higher prices. The company also has benefited from a diversification strategy that included the 2010 acquisition of National Starch, a maker of ingredients for soups, mayonnaise, sauces and yogurt.

The company reported a profit of US$95.1 million, or US$1.22 a share, up from US$52 million or US$0.67 a year earlier. Stripping out items like a one-time noncash post-retirement plan benefit, per-share earnings rose to US$1.11 from US$1.05 a year earlier, in line with the US$1.05-1.15 per-share profit predicted by the company.

Net sales after shipping and handling costs rose 10% to US$1.55 billion, short of the US$1.65 billion expected by analysts polled by Thomson Reuters. Gross margin widened to 18.1% from 17.5%.

Sales in North America, the largest top-line contributor, jumped 13% to US$834 million, while South American sales were up 9%. Sales in the company's Asia Pacific segment edged up 1.6%, while the Europe, Middle East, and Africa segment saw sales rise 6.7%.

Shares closed Wednesday at US$56.42 and were inactive premarket. The stock is up 7.3% since the start of the year.