US food ingredient company Corn Products International has seen a rise in second-quarter earnings, the company reported this week.
The maker of high fructose corn syrup and corn starch posted a net income of $19 million (€19.2m), or 52 cents a share in the period, compared with $15 million, or 43 cents, in the same period a year ago.
The company reported that sales and operating income were affected bya volume reduction of high fructose corn syrup (HFCS) in Mexico, caused by theslow resumption of sales following the temporary suspension of a tax imposedon soft drinks sweetened with HFCS, and by the continuing economic problems inSouth America.
Net income increased as financing costs and goodwillamortisation declined, compared to the prior year period. Net cash flow fromoperations increased to $82 million from $22 million in the second quarterlast year, driven mainly by improved working capital management. The company stated that the improvedcash flow was used primarily to pay down debt in order to reduce financingcosts.