Corn Products International, Inc. Comments on US Pricing
Commenting on the US business, Sam Scott, chairman, president and chief executive officer, said, "Last year, we generated significant earnings gains in the United States through cost savings and small increases in sweetener and starch pricing. This year, we expect to gain on both fronts. Clearly, we have a way to go as corn-sweetener pricing remains far below its alternative, sugar, and our US business, while directionally set, still does not return its cost of capital."
The Company reiterated that it projects a solid-income improvement for 2003 from last year's reported earnings of $1.77 per diluted share, and substantially better when compared with pro forma 2002 earnings of $1.63 per diluted share, excluding one-time gains. "As to the corporation," Scott went on to say, "we anticipate that our earnings per share increase will come from improved US performance, continuing improvement in South America as our Brazilian business recovers from last year's currency devaluation, and ongoing strong performance in our Asia/Africa region. As we stated earlier, we are optimistic about our outlook, even without resolution of the Mexican high fructose corn syrup tax issue. Finally, although the Company hedges a large portion of its energy costs, a continued run-up in energy costs could reduce our expectations for the Company's 2003 performance."
The Company expects to comment further on its earnings outlook at or before its first quarter 2003 earnings release on April 22, 2003.
About Corn Products International, Inc.
The Company is one of the world's largest corn refiners and a major supplier of high-quality food ingredients and industrial products derived from the wet milling and processing of corn and other starch-based materials. The Company is the number-one worldwide producer of dextrose and a leading regional producer of starch, high fructose corn syrup and glucose. In 2002, the Company recorded net sales of $1.9 billion with operations in 19 countries at 42 plants, including wholly owned businesses, affiliates and alliances. Headquartered in Westchester, Ill., it was founded in 1906. The Company is listed on the New York Stock Exchange under the symbol CPO. Additional information can be found on the World Wide Web at www.cornproducts.com .
This press release contains or may contain forward-looking statements concerning the Company's financial position, business and future earnings and prospects, in addition to other statements using words such as "anticipate," "believe," "plan," "estimate," "expect," "intend" and other similar expressions. These statements contain certain inherent risks and uncertainties. Although we believe our expectations reflected in these forward-looking statements are based on reasonable assumptions, stockholders are cautioned that no assurance can be given that our expectations will prove correct. Actual results and developments may differ materially from the expectations conveyed in these statements, based on factors such as the following: fluctuations in worldwide commodities markets and the associated risks of hedging against such fluctuations; fluctuations in aggregate industry supply and market demand; general political, economic, business, market and weather conditions in the various geographic regions and countries in which we manufacture and sell our products, including fluctuations in the value of local currencies, energy costs and availability and changes in regulatory controls regarding quotas, tariffs, taxes and biotechnology issues; increased competitive and/or customer pressure in the corn refining industry; the outbreak or continuation of hostilities; and stock market fluctuation and volatility. Our forward-looking statements speak only as of the date on which they are made and we do not undertake any obligation to update any forward- looking statement to reflect events or circumstances after the date of the statement. If we do update or correct one or more of these statements, investors and others should not conclude that we will make additional updates or corrections. For a further description of risk factors, see the Company's most recently filed Annual Report on Form 10-K and subsequent reports on Forms 10-Q or 8-K.
SOURCE Corn Products International, Inc.
CONTACT: Investors, Richard Vandervoort, +1-708-551-2595, or Media,
Jennifer Woomer Dinehart, +1-708-551-2602, both of Corn Products
International
URL: http://www.cornproducts.com
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