September 23, 2005

US Corn Products International sees lower 2005 profits

US corn refiner Corn Products International (CPI) expected its earnings a share for 2005 to be in the range of US$1.16-1.22/share, compared with US$1.25/share in 2004.

Meanwhile, analysts reportedly expected the company's 2005 profits at US$1.40/share on average.

CPI said lower profits from its US operations and a higher estimated tax rate were the reasons for the lower forecasts.

According to CPI, its boiler performance for this year's third quarter has been far less reliable than during the first half of 2005 and throughout 2004. There was much greater necessity to use a backup natural gas boiler at the same time when natural gas costs have risen significantly.

Meanwhile, the company also revised its outlook based on an effective tax rate of 38.5 percent, up from 34.5 percent expected previously.