February 1, 2006

Corn Products posts disappointing Q4 results

Corn Products International Inc. posted disappointing Q4 results on Jan 30, with sales and earnings below Wall Street forecasts.

Its quarterly profit was higher than a year ago, when it incurred a large restructuring charge for plant closures. However, higher energy and supply costs caused profit to drop sharply in North America.

For the fourth quarter ending Dec 31, 2005, profit was US$23 million. This compares with US$14 million a year earlier.

Sales increased by 2 percent to US$585.6 million, excluding shipping and handling costs.

The company said it has received higher contract prices in the US and Canada for 2006. Sam Scott, chairman and chief executive, said the company is cautiously optimistic about prospects for meaningful earnings growth in 2006.