WESTCHESTER, ILLINOIS, U.S. — Ingredion Inc. reported on Jan. 28 that net income attributable to the company for 2015 increased 13% to $402.2 million from $354.9 million the previous year.
Full-year 2015 reported and adjusted operating income were $660 million and $706 million, respectively. These were both 14% increases compared to $581 million reported operating income in 2014 and $616 million adjusted operating income.
The company attributed the increase to organic volume growth in core and specialty ingredients; acquisition-related volume growth; and margin expansion in North America. These positives were partially offset by the negative effect of foreign exchange.
Full-year 2015 reported and adjusted EPS were $5.51 and $5.88, respectively, up from reported and adjusted EPS of $4.74 and $5.20, respectively, in the year-ago period.
“We concluded 2015 with record earnings per share and significant progress on our strategic blueprint. Overall volumes grew seven percent and sales of our higher-value specialty portfolio grew to 25 percent of sales” said Ilene Gordon, chairman, president and chief executive officer. “Our acquisitions of Penford Corporation and Kerr Concentrates met our earnings and synergy expectations and propelled us further into the specialty ingredients. We also announced changes to optimize our global network by reducing costs and maximizing productivity. North America and Asia Pacific achieved record operating income for the year while South America and EMEA operating income was lower than the prior year as they faced slowing economies and foreign-exchange headwinds.”
For the fourth quarter, the company reported net income of $104 million, an increase of 70% from the $61.1 million reported in the same quarter a year earlier.
Fourth quarter reported and adjusted operating income were $173 million and $177 million, respectively. These were 46% and 16% increases, respectively, compared to $118 million of reported operating income and $153 million of adjusted operating income in the fourth quarter of 2014.
Fourth quarter 2015 reported and adjusted EPS were both $1.42 compared to fourth quarter 2014 reported and adjusted EPS of 83¢ and $1.30, respectively.
Full-year net sales were down 1% to $5.621 billion as a result of changes in foreign currency exchange rates and the pass through of lower corn costs, partially offset by volume growth, both organic and acquisition-related, and increased prices in South America, which partially compensated for currency headwinds, the company said.
Fourth-quarter net sales were up 3% to $1.405 billion as a result of volume growth, both organic and acquisition-related, and price increases in South America and North America. These were partially offset by changes in foreign currency exchange rates, the company said.
“Creating long-term shareholder value remains our top priority. We expect to continue our positive trajectory in our specialty portfolio, disciplined cost management, and margin expansion as well as ongoing capital
investments in manufacturing and R&D. This should continue to drive robust results,” Gordon said.
For 2016, the company said it anticipates adjusted EPS of $6.20 to $6.60. The full-year guidance assumes, compared to last year: overall improvement in North America, modest improvement in Asia Pacific and EMEA, and South America in line given the macroeconomic environment; an effective tax rate of approximately 30%-32%; sales of higher-value specialty ingredients are expected to continue to contribute to margin expansion.