Tuesday, November 4, 2008

Commodities: Corn Products International Guidance

Corn Products International Inc. (CPO), a company which refines the commodity corn for use in a number of industrial and food products, revised its yearly guidance upward today, based on a strong third quarter performance.

Original guidance was at $3.15 t $3.25 a share, now its upwardly revised to $3.40 to $3.60 a share. Analysts' expectations were for about $3.29 a share.

Corn Products International is poised to be taken over by industry giant Bunge LTD (BG) late in 2008, in response to the devastated commodities market which has driven down the share prices of the two companies. The target month was originally for November.

Corn Products International has had its share price fall by close to 50 percent, while Bunge has plunged by 69 percent, as they have a high exposure to currency-exchange rate flucuations.

Profits for the quarter increased to $88.1 million, or $1.15 a share, from last year's $51.1 million, or 66 cents a share. That growth of 72 percent.

Revenue for the quarter came in at $1.16 billion, up from $938.7 million during the same period last year; a 23 percent increase.

Similar to Archer Daniels Midland (ADM), less international commodity exposure helped them in relationship to currency exchange rates.

No comments: