April 28, 2006

Corn Products International reports whooping increase in net income

Corn Products International Inc, a global provider of agriculturally derived ingredients, reported a first quarter increase of 42 percent in net income to US$23 million, compared with net income of US$17 million a year ago.

Increased North America profitability was the main driver behind improved performance in the first quarter.

Net sales for the first quarter improved 9 percent to US$615 million, a record compared to US$567 million in 2005. The company cited a favourable currency, higher volumes and improved price/product mix as the reasons behind the growth in sales. 

At the same time, operating income grew 31 percent to US$46 million from US$35 million in the same period in 2005, resulting in a 7.5 percent improvement in operating margins.

Sam Scott, chairman, president and chief executive officer of Corn Products International said the company is pleased with its strong start to the year and the significant margin recovery in the North America region. He added that the company's operations in South America also reflected pricing and cost pressures in Brazil and Argentina while Asia and Africa performed within expectations.

Net sales to its  improved by 7 percent in its South America division to US$151 million while net sales in its Africa/Asia division increased 6 percent to US$88 million.

Corn Products International is one of the world's largest corn refiners and a major supplier of products derived from the wet milling and processing of corn and other starch-based materials.

In 2005, Corn Products International reported net sales of US$2.36 billion with operations in 15 countries at 33 plants.