Corn Products closes 'record' 100th year
2006, closing its 100th anniversary year with what it had forecast
to be its "best year ever" .
The company, which is a leading producer of dextrose, starch, high fructose corn syrup and glucose to the food industry, said that its strong results were a result of good volume sales as well as favorable currency translations and price/product mix.
Net sales for the year ended December 31 2006 grew 11 percent to reach $2.6bn, with profit increasing 25 percent compared to last year to reach a total of $416m.
The company reported strong growth in all geographical regions where it operates. Sales in North America - the firm's largest market - rose 12 percent, in line with the sector's continued strong performance throughout the year.
South American sales rose 11 percent, with strong volume growth and favorable currency transactions offsetting a reduction in price and product mix. The region's 2006 second half results improved over the first half, primarily in Brazil, which faced a tough trading environment earlier this year. Lower results in Argentina were a result of higher corn and energy costs, the company said.
Corn Products International's sales in Asia/Africa grew 8 percent, despite an unfavorable price/product mix. Lower results in South Korea were offset by a strong year in Pakistan.
In recent months, the company has made moves to significantly increase its food ingredients portfolio.
In November, Corn Products International announced its acquisition of the food business of SPI Polyols, as well as the remaining 50 percent of SPI's Brazilian joint venture. The transaction is expected to be complete in the first quarter of 2007.
"This acquisition will strengthen our sweeteners platform and reinforce our Pathway strategy to expand our value-added, specialty product portfolio and become a broader-based ingredients company," had said Sam Scott, chairman, president and chief executive officer of Corn Products International.
"The acquisition also would make us a leading producer of polyols in Latin America with facilities in Brazil, Mexico and Colombia, and would allow us to enter the US and Canadian markets primarily as a specialty polyols supplier," he added.