Corn Products plans National Starch integration as Q3 sales rise
The Illinois-based corn refiner and supplier of sweeteners and starches reported net income in the third quarter ended September 30 of $38.8m, down 28 percent from $54m for the prior year period. Net sales were $1.02bn, up five percent. The company also reported after tax charges of $23.9m related to the National Starch acquisition.
Corn Products International’s chairman, president and CEO Ilene Gordon said: "I am pleased to report a very good quarter. We saw strong volume growth across all our regions. In North America, we continued to see strong demand from the beverage industry in Mexico, as well as regional volume improvements in processed foods, corrugating and bakery. In South America, volume growth resulted from broad customer demand across multiple segments. In Asia/Africa, volume growth continued to be led by customer demand for sweeteners and starches in South Korea and Pakistan."
The company also increased its outlook from its previous range of $2.55 to $2.75 per share, to $2.75 to $2.85.
"This range excludes the impact associated with the National Starch acquisition and the shutdown of the company's Chilean plant,” said Gordon.
National Starch acquisition
Corn Products International completed its $1.3bn acquisition of National Starch at the beginning of the month, providing the company with a new presence in markets in Europe and Australasia, as well as access to new technologies, and improved scale and capabilities in markets where it already has a presence.
"The National Starch business has rebounded very nicely from the challenges experienced in 2009,” Gordon said. “While we are in the early planning stages for 2011, we expect that the acquisition will have a positive impact on earnings in 2011. We are making good progress with respect to our integration work, and expect to have the two businesses fully integrated over the next 18 to 24 months.”
