Corn Products Q3 net income falls US$35 million from year-ago

Corn Products International, Inc. reported net income of US$53 million for the third quarter of 2009, compared to the record-setting net income of US$88 million for the same period last year.

Third quarter results were affected by higher net corn costs, unfavourable foreign currency translations and weaker volumes.

Corn Products recorded net sales of US$971 million in the third quarter, down 10 percent on-year. Gross profit decreased 25 percent on-year to US$153 million, while gross margin decreased to 15.8 percent from 18.8 percent last year. The company attributed the decline in gross profit to the higher net corn costs and lower volumes in the North American business.

Operating expenses in the third quarter were US$66 million or 6.8 percent of net sales, compared to US$67 million, or 6.2 percent of net sales, last year.

Other income in the third quarter of 2009 was less than US$1 million compared to US$11 million last year. Last year other income included a US$4 million insurance recovery and a US$3 million gain from a land sale, the company said.

Operating income for the third quarter of 2009 was US$88 million compared to US$148 million last year.

South American volumes rebounded nicely, leading to quarter-over-quarter sequential growth in 2009, and growth over third quarter 2008 volumes as well, said Ilene Gordon, chairman, president and chief executive officer.

There was also sequential volume improvement in the third quarter of 2009 in North America and Asia/Africa, Gordon said.