WESTCHESTER, ILLINOIS, U.S. — Ingredion Inc. reported on Jan. 30 that net income attributable to the company for 2014 dropped 10% to $354.9 million from the $395.7 million reported the previous year.

Earnings per diluted share for 2014 were $4.74 compared to $5.05 in 2013. For the fourth quarter, earnings dropped 41% to $61.1 million from $103.5 million in the same period a year earlier.

Soft demand and foreign exchange headwinds in South America and weaker than expected performance in North America impacted earnings, said Ilene Gordon, chairman, president and chief executive officer.

Gordon noted that specialty sales grew to 24% of full-year net sales and overall volumes grew in North America, Asia Pacific and Europe, the Middle East and Africa.

“Creating shareholder value remains our top priority. The acquisition of Penford Corporation is expected to close in the first quarter pending regulatory approval. It should be immediately accretive to earnings and will enhance our high-value specialty ingredient portfolio,” Gordon said.

Penford’s shareholders on Jan. 29 approved the agreement and merger plan. Ingredion will acquire all of the outstanding shares of Penford for $19 in cash per share. The transaction has been approved by the boards of directors of both companies and is valued at approximately $340 million in the aggregate.

Penford develops, manufactures and markets specialty ingredient systems for a variety of food and industrial products. Penford operates six manufacturing facilities and three research and development centers in the U.S.

For Ingredion in 2015, North America is expected to drive bottom-line growth as it returns to normal from adverse weather in the first quarter of 2014 and margins expand, Gordon said. South America, EMEA, and Asia Pacific are anticipated to improve modestly given expected continuing economic headwinds, slowing economies, and weaker foreign exchange rates resulting from a stronger U.S. dollar across the globe.

Full year reported operating income and adjusted operating income were $581 million and $616 million, respectively. Adjusted operating income was up 1% compared to 2013 operating income of $613 million, while reported operating income was down 5% when compared to the prior year. The increase in adjusted operating income was due to volume growth, stronger specialty sales, and lower corporate expenses, which were partially offset by unfavorable product mix in the core product portfolio and weaker foreign exchange rates resulting from a stronger U.S. dollar.

Fourth quarter 2014 results include a non-cash goodwill impairment charge of $33 million based on continued uncertainty over the timing of recovery from challenging economic conditions in Southern Cone.

Net sales were down in the fourth quarter and full year as a result of the pass-through of lower raw material costs and currency devaluations, partially offset by volume growth.

Fourth quarter reported operating income and adjusted operating income were $118 million and $153 million, respectively. This was a 26% and 5% decrease, respectively, compared to $161 million of reported operating income in the fourth quarter of 2013. The decrease in adjusted operating income was primarily due to unfavorable price/mix in North America and Asia Pacific.