Corn Products 'well managed', says Forbes
one of America's best managed companies by Forbes magazine.
The accolade is bestowed on the company in the 10 January issue of the magazine. It was one of 26 to be named from the platinum list of America's best big companies for which Forbes reviewed 1,000 publicly traded companies with revenues of $1 billion. The magazine looked at peer-to-peer earnings evaluation, accounting and governance scores, for example.
"Our goal now is to build on our accomplishments and continue to create value for our customers and shareholders," said Sam Scott, chairman, president and chief executive officer.
The company announced in November that it was closing two of its corn refining facilities, namely one of its starch plants in Guadalajara, Mexico (Cisne), the smallest of its four plants in Mexico, and one of its facilities in the Andean region in South America.
Scott said that he expected this decision to bring about greater production efficiency.
A month earlier, Corn Products had announced improved sales and improved earning for the first nine months of 2004, though as the company had previously forecast, the second half of the year has proved more challenging than the first six months.
The firm reported an increase in net sales of 16 percent in the third quarter, compared to the same period last year, up from $541 million to $587 million. Net income also grew from $20 million to $24 million.
"Our forecast of accelerated earnings growth during the first half of 2004, followed by a good but less robust second half, is proving to be correct, as projected higher raw material and energy costs affected results in the third quarter," said Scott.
As for results in North America, Scott offered some muted praise, concluding that: "we know we have more work to do".
In this region, volume grew by 4 percent and net sales were $371 million, up from $344 million in 2003.
In June, the company took the decision to try and defend its market position by taking root in China and linking up with Shandong Juneng Electric Power Group Golden Corn Development company to manufacture modifed corn starch.
"Establishing what we expect will be our initial manufacturing presence in China is aligned with our company's strategy of growing businesses in new, high-growth regions," said Scott at the time.
Fourth quarter results are expected to be announced on 25 January.
