WESTCHESTER, Ill.—Corn Products International, Inc. announced 2009 fourth-quarter net income of $56 million, up 21 percent compared to $46 million reported for the same period last year. Fourth-quarter 2009 earnings per diluted common share were 74 cents compared to 61 cents earned in the fourth-quarter of 2008. Included in the 2008 fourth-quarter results was a negative 9 cents per share impact from the reimbursement of expenses in connection with the terminated merger with Bunge Limited.
Net sales of $959 million in the fourth-quarter of 2009 increased 7 percent versus $900 million in the prior-year period. The three primary contributors to changes in net sales in the fourth-quarter were a positive $60 million from stronger foreign currencies; a positive $48 million from improved volumes; and a negative $49 million from lower price/mix, approximately half of which was related to lower co-product selling prices.
Fourth-quarter 2009 gross profit of $163 million improved 15 percent versus $141 million a year ago. The gross margin of 17.0 percent compared favorably to 15.7 percent last year. The improvement in gross profit is mainly attributable to higher volumes and stronger foreign currencies, not withstanding increases in total company net corn and energy costs per ton versus a year ago.
Operating expenses in the fourth quarter were $66 million, or 6.9 percent of net sales, versus $67 million, or 7.4 percent of net sales, last year. Other income in the fourth-quarter of 2009 was $2 million compared to an expense of $11 million last year largely related to expenses in connection with the terminated merger with Bunge. Operating income for fourth-quarter 2009 was $99 million, compared to $64 million last year.
“We are pleased with the fourth-quarter results,” said Ilene Gordon, chairman, president and CEO. “On a total company basis, volumes, margins, and foreign currencies were favorable versus last year and are reflected in the 55-percent improvement in operating income and the 21-percent improvement in EPS. All three regions performed better than last year on an operating income basis.”
