April 27, 2007

Corn Products profits up sharply in first quarter

Corn Products International said its first quarter profits more than doubled on the back of strong sales and successful price increases.

The firm, which supplies the food industry with starch, sweeteners and other corn-derived ingredients, reported gross profits of US$146m for the quarter ended March 31 2007, up 58 percent from US$93m last year.

According to Sam Scott, chairman, president and chief executive officer of Corn Products International, all three of the firm's geographic regions - North America, South America and Asia/Africa - contributed to its "excellent performance".

Performance in North America was particularly strong, with improvement driven by increased pricing.  Although corn costs increased significantly, customers were able to absorb a large part of this increase, he said.

Scott said the company has been able to pass on higher corn costs more rapidly than expected in its international markets.

The company's business model continue to work well in today's environment of higher and more volatile,

corn prices, Scott said. Still, the company carries risks due to the unpredictability of corn prices, he conceded.

Despite the uncertainty, the company increased its 2007 outlook, saying it anticipates a 29 to 41 percent increase in diluted EPS in 2007.

The North American region would be the major profit driver in 2007 and improved results are expected in the South America and Asia/Africa regions.