NEWS: Ingredion Inc., which makes sweeteners, starches and other ingredients, said that its third-quarter net income fell 23 percent as slower sales and other challenges weighed on its performance. It also lowered its full-year forecast and shares fell in trading Wednesday.
DETAILS: The company said that many of the issues it faced in the second quarter persisted or worsened in the third. This included weak sales volume, unfavorable currency exchange rates and higher costs. The company faced particular difficulty in Argentina where political and economic conditions have increased the company's costs but limited its ability to raise prices.
Ingredion also said Wednesday that its chief financial officer and executive vice president, Cheryl Beebe, is retiring in January due to family health issues. Jack Fortnum, president of the company's North American business, will take over as CFO.
NUMBERS: Ingredion's net income fell to $86.3 million, or $1.10 per share, for the quarter that ended Sept. 30. That is down from $112.7 million, or $1.45 per share, last year. It earned $1.52 per share last year on an adjusted basis. Revenue declined 4 percent to $1.61 billion from $1.68 billion.
Analysts polled by FactSet anticipated earnings of $1.26 per share on revenue of $1.64 billion.
FUTURE: The company expects to earn $5 to $5.15 per share for the year, down from its prior guidance of $5.10 to $5.40 per share. Analysts had forecast earnings of $5.24 per share, on average. Ingredion also said that capital expenditures will be in the range of $300 million to $325 million to support growth and cost-reduction actions across the organization.
STOCK: Shares of the Westchester, Ill.-based company fell $5.89, a more than 8 percent decline, to $64 by midday in high-volume trading.