April 21, 2004

Good News For Corn Products International In First Quarter 2004
 
Corn Products International released its record earnings for the quarter ended March 31 2004 in a conference call today. The Company had registered diluted earnings of $0.70 per share, an 84-percent increase over diluted earnings of $0.38 per share in the first quarter of 2003.
 
Sam Scott, chairman, president and chief executive officer of Corn Products International attributed the excellent results in the first quarter to "increased volumes, improved price/product mix and strong currencies". "At the same time, our ongoing focus on costs is reflected in our bottom-line results, as both gross margin and operating margin continue the upward trend that we established over the previous year," he added.
 
Scott pointed out that gross corn costs were higher in the first quarter of 2004 than they were in the same period last year. He also predicted that the first-quarter 2004 corn costs would likely be the lowest that the Company will experience this year.
 
The Company's results for the first quarter of 2004, compared with the prior year period, were as follows:
 
- Net sales were $550 million, up from $479 million
- Operating income was $54 million, up from $36 million
- Net income was $26 million, up from $14 million
 
Business Breakdown by Region
 
Results for the first quarter of 2004 in the various regions, as compared with the prior year period, were as follows:
 
North America:
 
- Net sales were $339 million, up from $307 million
- Volume increased 5 percent
- Operating income was $24 million, up from $12 million
 
The significant increase in net sales and operating income primarily reflected improved price/product mix across the region, with the greatest impact to the Mexican and Canadian operating results. Strong volume growth in the United States and Mexico, as well as the favorable Canadian dollar also contributed to the quarter. The Company believes that this quarter's results are a better reflection of the North America operating income run rate over time. This is in comparison to the same period last year, which was the softest quarter of the year 2003.
 
The bilateral trade negotiations to resolve the Government of Mexico's tax on beverages sweetened with high fructose corn syrup are continuing. The Company supports those ongoing negotiations.
 
South America
 
- Net sales were $136 million, up from $105 million
- Volume increased 17 percent
- Operating income was $23 million, up from $16 million
 
Strong volume growth, which outpaced economic performance throughout the region, is mainly indicated through the rise in net sales and operating income. Net sales were also favorably affected by the revaluation of the South American currencies. The comparable period last year was the weakest of the four quarters.
 
Asia/Africa
 
- Net sales were $75 million, up from $67 million
- Volume improved 7 percent
- Operating income was $17 million, up from $14 million
 
The increase in net sales and operating income in this region was driven by volume growth, improved price/product mix and strong Asian currencies. The Company's new glucose refinery in Thailand, which came on line in 2003, contributed to the region's volume and margin gains during the quarter.
 
On a corporate level, financing costs for the first quarter of 2004 totaled $9 million, consistent with the first quarter of 2003. The Company's effective income tax rate of 36 percent for the first quarter was unchanged from the prior year.
 
Cash provided by operations for the first quarter of 2004 totaled $75 million, up $78 million from the period a year ago. This was driven by a $62-million improvement from changes in working capital. Total debt was $539 million at March 31, 2004, down from $550 million at December 31, 2003. 
  
Outlook
 
An optimistic outlook is predicted for Corn Products International. According to Scott, the Company has confidence that the business would grow in 2004, along with a very strong first half. While corn and energy costs are expected to rise, perpetual improvement throughout their global business is also a high possibility.
 
"For the full year 2004, we anticipate diluted earnings per share to increase 12 to 17 percent over 2003," Scott said. 
  
About Corn Products International, Inc
 
Established back in 1906, Corn Products International, Inc. has come a long way to become one of the world's largest corn refiners. True to its mission of being the "premiere regional provider of refined, agriculturally based products and ingredients worldwide", Corn Products International, Inc. is a major supplier of products from the corn-refining process - sweeteners and starches.
 
With its headquarters in Westchester, Ill, Corn Products International has 37 plants in 19 countries across the globe. Extending its reach in almost 60 industries, the Company manages corn-refining operations, and even sales and marketing business in the various regions. Through wholly owned businesses, affiliates and alliances, the Company recorded net sales of $2.1 billion for 2003. Thus it is no surprise that Corn Products International is the top worldwide producer of dextrose and a main regional manufacturer of starch, high fructose corn syrup and glucose.
 
Corn Products International, Inc. is listed on the New York Stock Exchange (NYSE) under the symbol CPO.