Dive Brief:
- Ingredion reported $1.64 EPS for the third quarter, beating the analyst consensus estimate by $0.13. It posted revenue of about $1.44 billion for the quarter based on analysts predictions of $1.49 billion and down 1.6% compared to the third quarter of 2014. During the same quarter in the previous year, Ingredion posted $1.60 EPS.
- At the close of last month, Ingredion's total debt and cash and short-term investments were $2.3 billion and $731 million, respectively, versus $1.8 billion and $614 million, respectively, at the end of last year.
- "Our solid third quarter results reflect the overall positive trajectory of our business," said Ilene Gordon, chairman, president and chief executive officer. "Higher core and specialty volumes, improved mix, good operating efficiency, and the impact of acquisitions, more than offset foreign-exchange headwinds."
Dive Insight:
In North America, South America, and Asia Pacific year-over-year operating income improved putting the company in a positive position for the fourth quarter of this year.
"Our Kerr acquisition, which broadens our wholesome and clean-label ingredient portfolio, was finalized in August and the Penford integration remains on track for at least $20 million in annualized cost synergies. We continue to take actions to optimize our cost structure for the future. Our expectation for adjusted EPS for the year is raised to $5.75-$5.90, including accretion resulting from both transactions, but excluding costs related to acquisitions and restructuring." Gordon added.