CPO Issues 2010 Diluted EPS Guidance in a Range of $2.25 to $2.60
Corn Products International, Inc. (NYSE: CPO), a leading global provider of agriculturally derived ingredients for diversified markets, announced today that it expects 2010 diluted earnings per common share to be in the range of $2.25 to $2.60 versus the reported 2009 diluted earnings per common share of $0.54. Excluding the after tax impact of impairment and restructuring charges taken in 2009, the adjusted 2009 diluted earnings per common share was $2.01. The 2010 EPS guidance represents an increase in diluted earnings per common share in the range of 12 percent to 29 percent compared to 2009 adjusted diluted earnings per common share.
"While the North American business environment remains challenging, we expect modest volume growth in North America driven by sweetener sales in our Mexican business," said Ilene Gordon, chairman, president and chief executive officer. "North America contracting was largely completed by 2009 year-end. Soft demand and lower corn costs resulted in lower pricing and a low single digit reduction in spreads; however, we expect North America gross profit and operating income to improve on higher volumes and manufacturing efficiencies."
Gordon added, "We expect better volumes in South America and Asia/Africa as regional economies improve, led by a strengthening economy in Brazil and continued HFCS volume recovery in Korea. And we expect improved profitability in Asia on lower net corn costs and higher plant utilization rates."
The Company expects to invest between $175 million and $200 million in capital projects during 2010, compared with $141 million invested in 2009. Approximately one third of the capital spending in 2010 represents projects continued from 2009, including a high intensity sweetener facility and expansions in Argentina and Pakistan. Major 2010 capital investments include growth and cost reduction projects.
The Company expects to generate sufficient cash flow to cover capital investments and dividends.
"We enter 2010 in a good position," Gordon said. "The continuing strength of our balance sheet, ample liquidity, cash flow from operations, and a solid business model should put us in position to take advantage of growth opportunities as they present themselves. We remain focused on creating long-term shareholder value."
Conference Call and Webcast
Corn Products International will conduct a conference call today at 8:30 a.m. Eastern Time (7:30 a.m. Central Time) to be hosted by Ilene Gordon, chairman, president and chief executive officer, and Cheryl Beebe, vice president and chief financial officer.
The call will be broadcast in a real-time webcast. The broadcast will consist of the call and a visual presentation accessible through the Corn Products International web site at www.cornproducts.com. The "listen-and-view-only" presentation will be available to download approximately 60 minutes prior to the start of the call. A replay of the webcast will be available at www.cornproducts.com.
Individuals without Internet access may listen to the live conference call by dialing 719-325-2204. A replay of the audio call will be available through Friday, February 12 by calling 719-457-0820 and using passcode 4656128.
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