Du är här

2016-01-28

Ingredion Incorporated: INGREDION INCORPORATED REPORTS SOLID FOURTH QUARTER 2015 RESULTS

* Fourth quarter 2015 reported and adjusted EPS were both $1.42 compared to
fourth quarter 2014 reported and adjusted EPS of $0.83 and $1.30,
respectively
* Full-year 2015 reported and adjusted EPS were $5.51 and $5.88,
respectively, up from reported and adjusted EPS of $4.74 and $5.20,
respectively, in the year-ago period
* Strong cash flow from operations of $686 million
* 2016 adjusted EPS is expected to be $6.20-$6.60, excluding restructuring
and acquisition-related costs

WESTCHESTER, Ill., January 28, 2016 - Ingredion Incorporated (NYSE: INGR), a
leading global provider of ingredient solutions to diversified industries,
today reported results for the fourth quarter 2015.

"We concluded 2015 with record earnings per share and significant progress on
our strategic blueprint. Overall volumes grew seven percent and sales of our
higher-value specialty portfolio grew to 25 percent of sales" said Ilene
Gordon, chairman, president and chief executive officer. "Our acquisitions of
Penford Corporation and Kerr Concentrates met our earnings and synergy
expectations and propelled us further into the specialty ingredients. We also
announced changes to optimize our global network by reducing costs and
maximizing productivity. North America and Asia Pacific achieved record
operating income for the year while South America and EMEA operating income
was lower than the prior year as they faced slowing economies and
foreign-exchange headwinds.

"Creating long-term shareholder value remains our top priority. We expect to
continue our positive trajectory in our specialty portfolio, disciplined cost
management, and margin expansion as well as ongoing capital investments in
manufacturing and R&D. This should continue to drive robust results. For
2016, we anticipate adjusted EPS of $6.20 to $6.60," Gordon added.

Diluted Earnings Per Share (EPS)

-----------------------------------------------------------------
| 4Q14 4Q15 2014 2015 |
| Reported EPS $0.83 $1.42 $4.74 $5.51 |
| Acquisition/Integration costs $0.02 $0.03 $0.02 $0.19 |
| Impairment/Restructuring $0.44 $0.04 $0.44 $0.25 |
| Litigation settlement - $0.06 - $0.06 |
| Gain on sale of plant - ($0.12) - ($0.12) |
| Adjusted EPS* $1.30 $1.42 $5.20 $5.88 |
-----------------------------------------------------------------
*
Totals may not foot due to rounding

Estimated factors affecting change in adjusted EPS

---------------------------------------------
| 4Q15 2015 |
| Margin 0.34 1.48 |
| Volume 0.11 0.26 |
| Foreign exchange (0.18) (0.65) |
| Other income/(expense) (0.04) (0.24) |
| Total operating items 0.23 0.85 |
| |
| Financing costs (0.05) - |
| Shares outstanding 0.01 0.16 |
| Tax rate (0.05) (0.31) |
| Non-controlling interest (0.02) (0.02) |
| Total non-operating items (0.11) (0.17) |
| Total items affecting EPS 0.12 0.68 |
---------------------------------------------
Financial Highlights

* At December 31, 2015, total debt and cash and short-term investments were
$1.8 billion and $440 million, respectively, versus $1.8 billion and $614
million, respectively, at December 31, 2014. Cash and short-term
investments were lower by $174 million as we decreased borrowings under our
senior unsecured revolving credit facility, which we had utilized to pay
$434 million for our Penford and Kerr acquisitions.
* During the fourth quarter of 2015, net financing costs were $18 million, or
$5 million higher than the year-ago period, largely due to the December
devaluation of the Argentine peso. Full-year financing costs were $62
million, in line with the prior year.
* During 2015, reported and adjusted full-year effective tax rates were 31.2
percent and 31.8 percent, respectively, compared to reported and adjusted
effective tax rates of 30.2 percent and 28.3 percent, respectively, in the
year-ago period. The higher rates were primarily driven by greater earnings
in higher tax jurisdictions as well as the devaluation of the Mexican peso
during the quarter.
* Capital expenditures were $277 million for 2015, $6 million higher than
2014.
* During 2015, the Company repurchased approximately 435,000 shares of common
stock for $34 million.

Business Review

Total Ingredion

------------------------------------------------------------------------------------------
| $ in millions 2014 Net sales FX Impact Volume Price/mix 2015 Net sales % change |
| Fourth quarter 1,368 -135 131 40 1,405 3% |
| Full year 5,668 -483 387 49 5,621 -1% |
------------------------------------------------------------------------------------------
Net Sales

* Fourth quarter net sales were up as a result of volume growth, both organic
and acquisition-related, and price increases in South America and North
America. These were partially offset by changes in foreign currency
exchange rates.
* Full-year net sales were down as a result of changes in foreign currency
exchange rates and the pass through of lower corn costs, partially offset
by volume growth, both organic and acquisition-related, and increased
prices in South America, which partially compensated for currency
headwinds.

Operating income

* Fourth quarter reported and adjusted operating income were $173 million and
$177 million, respectively. These were 46 percent and 16 percent increases,
respectively, compared to $118 million of reported operating income and
$153 million of adjusted operating income in the fourth quarter of 2014.
The increase in adjusted operating income was primarily due to: organic
volume growth in core and specialty ingredients; acquisition-related volume
growth; and margin expansion in North America. These positives were
partially offset by the negative effect of foreign exchange.
* Fourth quarter reported operating income was lower than adjusted operating
income by $3 million. Of this, $7 million is related to the settlement of
litigation involving Western Sugar; $4 million of restructuring costs
associated with the sale of our plant in Port Colborne, Canada and Penford;
$2 million is for acquisition-related costs for the Kerr acquisition; and
$10 million is a gain on the sale of our Port Colborne plant.
* Full-year 2015 reported and adjusted operating income were $660 million and
$706 million, respectively. These were both 14 percent increases, compared
to $581 million of 2014 reported operating income and $616 million of 2014
adjusted operating income. The increase in adjusted operating income were
primarily due to: organic volume growth in core and specialty ingredients;
acquisition-related volume growth; and margin expansion in North America.
These positives were partially offset by the negative effect of foreign
exchange.

North America

------------------------------------------------------------------------------------------
| $ in millions 2014 Net sales FX Impact Volume Price/mix 2015 Net sales % change |
| Fourth quarter 732 -17 123 4 842 15% |
| Full year 3,094 -65 367 -51 3,345 8% |
------------------------------------------------------------------------------------------
Operating income

* Fourth quarter operating income increased from $86 million to $117 million.
Higher organic and acquisition-related volumes and operational efficiencies
accounted for the increase.
* Full-year operating income increased from $375 million to $479 million.
Higher organic and acquisition-related volumes, lower corn costs,
operational efficiencies, and nonrecurrence of costs attributable to the
adverse weather effects in the first quarter of last year drove the
increase.

South America

------------------------------------------------------------------------------------------
| $ in millions 2014 Net sales FX Impact Volume Price/mix 2015 Net sales % change |
| Fourth quarter 297 -93 2 42 248 -17% |
| Full year 1,203 -311 -1 121 1,012 -16% |
------------------------------------------------------------------------------------------
Operating income

* Operating income in the fourth quarter was $28 million, down $6 million.
The decline was largely a result of the negative effect of foreign
exchange, cooler weather and higher input and corn costs. This was
partially mitigated by improved price/mix.
* Full-year operating income was $101 million, down $7 million. The decline
was largely a result of the negative effect of foreign exchange and higher
input and corn costs. This was partially mitigated by improved price/mix.

Asia Pacific

------------------------------------------------------------------------------------------
| $ in millions 2014 Net sales FX Impact Volume Price/mix 2015 Net sales % change |
| Fourth quarter 199 -15 - -4 180 -10% |
| Full year 794 -57 15 -19 733 -8% |
------------------------------------------------------------------------------------------
Operating income

* Fourth quarter operating income was $26 million, up $3 million from a year
ago. Margin expansion was partially offset by foreign exchange impacts.
* Full-year operating income was $107 million, up $4 million from a year ago.
Increased volume and margin expansion were partially offset by foreign
exchange impacts.

Europe, Middle East, Africa (EMEA)

------------------------------------------------------------------------------------------
| $ in millions 2014 Net sales FX Impact Volume Price/mix 2015 Net sales % change |
| Fourth quarter 140 -10 7 -2 135 -4% |
| Full year 578 -51 6 -3 530 -8% |
------------------------------------------------------------------------------------------
Operating income

* Fourth quarter operating income was $27 million, flat compared to a year
ago. Good cost management and slightly higher volumes were offset by
foreign exchange impacts.
* Full-year operating income was $93 million, down $2 million from a year
ago. Goo...

Författare WKR

Tala om vad ni tycker

Tala om vad ni tycker

Ni är just nu inne på en betaversion av nya aktiespararna. Lämna gärna feedback på vad ni tycker i formuläret nedan.