Ingredion Reports 4Q Net Income of $103.5 Million, Down From $111.6 Million in 4Q 2012
Date Posted: February 6, 2014
Westchester, IL—Ingredion Incorporated (NYSE: INGR), a leading global provider of ingredient solutions to diversified industries, today reported results for the fourth quarter 2013.
"We concluded 2013 on a positive note as we delivered a quarter largely in-line with our expectations," said Ilene Gordon, chairman, president and chief executive officer.
"Notably, Asia Pacific achieved volume and operating income growth in the quarter and record operating income for the full year, and South American volumes in the quarter were positive for the first time this year.
"These positives were offset by continuing cost pressures and foreign exchange headwinds in South America, particularly Argentina, as well as volume softness in North America that led to unfavorable fixed cost absorption.
"At the same time, we repurchased 2.5 million shares, bringing our total buyback in 2013 to 3.4 million shares. We also raised our dividend by more than 60 percent in 2013.
"We plan to continue to appropriately return capital to shareholders while also maintaining a strong balance sheet that leaves us well positioned for future growth.
"As we look ahead to 2014, we expect to return to earnings per share growth. In 2014, the primary drivers of the bottom line growth should be improved performance in all four regions.
"We will also benefit from the accretion derived from our significant share repurchase late in 2013," Gordon added.
2014 EPS is expected to be in a range of $5.35 to $5.75 compared to $5.05 in 2013.
The guidance anticipates ongoing cost pressures and currency headwinds in Argentina; a challenging environment as sugar prices remain low; and, an effective tax rate of 27 - 28 percent.
All four regions are expected to deliver increased operating income.
However, as a result of lower input costs, sales are expected to drop significantly for the total Company.
Cash generated by operations is expected to be approximately $700 - 750 million in 2014.
Capital expenditures in 2014 are anticipated to be approximately $300 - $350 million.
These investments will support growth and cost reduction actions across the organization.
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