Corn Products Earnings: Very Strong Quarter on 55% Sales Growth

Corn Products International, Inc. (NASDAQ:CPO) reported net income above Wall Street’s expectations for the first quarter. Corn Products International, Inc. together with its subsidiaries manufactures and sells a number of ingredients to a variety of food and industrial customers. Commodities Premium Investment Newsletter>>

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Corn Products International Earnings Cheat Sheet for the First Quarter

Results: Net income for Corn Products International, Inc. rose to $153.6 million ($1.97/share) vs. $43.4 million (56 cents/share) in the same quarter a year earlier. A more than threefold rise from the year earlier quarter.

Revenue: Rose 55.7% to $1.46 billion YoY.

Actual vs. Wall St. Expectations: CPO reported adjusted net income of of $1.28/share. By that measure, the company beat the mean estimate of 89 cents/share. Estimates ranged from 72 cents per share to $1.02 per share.

Quoting Management: “Corn Products delivered a very strong first quarter as we benefited from good performance across the entire business including the recently acquired National Starch,” said Ilene Gordon, Chairman, President and Chief Executive Officer. “These results reflect the strength of our business model which takes a regional approach with a global perspective combined with a prudent commodity risk management philosophy to deliver long-term performance. Looking ahead, we continue to expect another year of earnings growth. We also plan to continue to invest in our business for future growth through capital expansions in key markets like Brazil, cost savings programs, and new product development leveraging our acquired R&D capability.”

Key Stats: Last quarter marked the fifth consecutive quarter of gross margins expanding as the company’s gross margin expanded 5.2 percentage points to 20.4% from the year earlier quarter. Over that span, margins have grown on average 3.7 percentage points per quarter on a year-over-year basis.

Over the last five quarters, revenue has increased 26.1% on average year over year. The biggest increase came in the most recent quarter, when revenue rose 55.7% from the year earlier quarter.

Competitors to Watch: Archer Daniels Midland Co. (NYSE:ADM), Bunge Limited (NYSE:BG), MGP Ingredients, Inc. (NASDAQ:MGPI), Darling International Inc. (NYSE:DAR), SunOpta, Inc. (NASDAQ:STKL), Mosaic (NYSE:MOS), Potash (NYSE:POT), Agrium (NYSE:AGU) and CF Industries (NYSE:CF).

Today’s Performance: Shares of CPO are trading at $56.67 as of May 2, 2011 at 8:00 AM ET, up 2.85% from the previous close of $55.10.


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