Corn Products International Inc.'s (CPO) fourth-quarter profit slipped on acquisition charges, yet adjusted earnings surged as the company benefited from its purchase of an ingredient maker and the ability to pass on higher corn costs.
The results easily surpassed analyst expectations for the quarter, and the suburban Chicago company continued to tout its purchase last summer of National Starch, a specialty food ingredient maker, as a key driver to growth. It has given Corn Products a footprint in Europe and boosted its line of higher-end food ingredients.
The $1.3 billion purchase, which has been widely praised by analysts, is "really a transformational event in Corn Products' history,"Chief Executive Ilene Gordon said.
Corn Products, which provides sweeteners and starches to food processors and industrial customers, expects to realize $50 million in annual cost savings from the National Starch purchase by the end of 2012. Despite a record year for National Starch in 2010, Gordon said she expects continued growth in 2011 on stronger volumes in Europe.
Corn Products International Reports 2010 Fourth Quarter and Full Year Results
Corn Products International 4Q Drops On Acquisition Costs National Starch
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