Corn Products International (NYSE:CPO) enjoyed a solid first quarter as all markets the company serves were up.
Sales were up 12 percent while the North American market increased revenue from $531 million last year during the same quarter to $541 million this quarter, a gain of 2 percent.
Profits in the quarter grew from $16.8 million, or 22 cents a share last year, to $43.4 million, or 57 cents a share the first quarter.
Currency exchange rates helped the company offset price/product drops of 13 percent.
Showing posts with label Corn Products International. Show all posts
Showing posts with label Corn Products International. Show all posts
Wednesday, May 5, 2010
Monday, November 10, 2008
Bunge Ltd Ends Bid to Acquire Corn Products International
When the board of Corn Products International (CPO) recently announced it could no longer support the acquisition bid from Bunge Ltd (BG) for the company, the deal had little chance of going forward, and Bunge confirmed that today, announcing it had withdrawn its bid.
The primary reason wasn't the credit markets, because the deal was to be financed with stock. Rather, it was the fall in stock price of Bunge which made the deal undesirable to the Corn Products board.
Bunge was hoping to become a significant player in the finished corn products market, expanding from its core food processing business.
Now that the deal won't go forward, we'll probably see a new CEO announced soon to replace outgoing Corn Products CEO Sam Scott.
The primary reason wasn't the credit markets, because the deal was to be financed with stock. Rather, it was the fall in stock price of Bunge which made the deal undesirable to the Corn Products board.
Bunge was hoping to become a significant player in the finished corn products market, expanding from its core food processing business.
Now that the deal won't go forward, we'll probably see a new CEO announced soon to replace outgoing Corn Products CEO Sam Scott.
Wednesday, November 5, 2008
Corn Products International Board No Longer Supports Bunge Acquisition
While the announcement by the Corn Products International Inc (CPO) board that it was no longer supporting the proposed acquisition by fertilizer and oil seed giant Bunge Ltd (BG) is a surprise, it can't be called a shocking decision.
With both companies plunging in stock price, especially Bunge (BG), and Corn Products International recently revising their guidance upwards, the deal doesn't look near as profitable for Corn Products' shareholders than when the original offer was made.
Under the terms of the proposed deal, Bunge retains a "force the vote" clause wherein they can bring the deal directly to the shareholders to vote on, no matter what the board says or does. Bunge said it won't be changing any of the terms of the deal.
The original offer was for $4.4 billion, but since then shares in bunge have declined by 63 percent, while Corn Products has fallen by 44 percent.
Most analysts think the chances of a merger are pretty slim at this time, and the major event to watch is if Corn Products hires a new CEO to replace departing CEO Sam Scott. If they do, the assumption is they're going to go on and operate as an independent company rather than proceed with the merger.
Bunge is still weighing its options as whether to continue pursuing it through forcing a vote or not.
With both companies plunging in stock price, especially Bunge (BG), and Corn Products International recently revising their guidance upwards, the deal doesn't look near as profitable for Corn Products' shareholders than when the original offer was made.
Under the terms of the proposed deal, Bunge retains a "force the vote" clause wherein they can bring the deal directly to the shareholders to vote on, no matter what the board says or does. Bunge said it won't be changing any of the terms of the deal.
The original offer was for $4.4 billion, but since then shares in bunge have declined by 63 percent, while Corn Products has fallen by 44 percent.
Most analysts think the chances of a merger are pretty slim at this time, and the major event to watch is if Corn Products hires a new CEO to replace departing CEO Sam Scott. If they do, the assumption is they're going to go on and operate as an independent company rather than proceed with the merger.
Bunge is still weighing its options as whether to continue pursuing it through forcing a vote or not.
Tuesday, November 4, 2008
Corn Products International Raises Guidance for Year
Corn Products International (CPO) has raised its guidance for the year based on a good third quarter.
The original guidance from the company was for between $3.15 to $3.25 a share, which now has been revised upward to $3.40 to $3.60 a share. Analysts were looking for around $3.29 a share.
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 exposure helped them in relationship to currency exchange rates.
Later this year the company will be taken over by Bunge LTD (BG). The date has been moved back to December from November, as the economic crisis has driven the prices of the two companies down by half or more.
The original guidance from the company was for between $3.15 to $3.25 a share, which now has been revised upward to $3.40 to $3.60 a share. Analysts were looking for around $3.29 a share.
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 exposure helped them in relationship to currency exchange rates.
Later this year the company will be taken over by Bunge LTD (BG). The date has been moved back to December from November, as the economic crisis has driven the prices of the two companies down by half or more.
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