- Anticipates Third Quarter Earnings per Share ("EPS") and Adjusted EPS* of $1.32 and $1.70, respectively
- Updates 2018 Adjusted EPS Guidance to $6.80 to $7.05
- Board Authorizes Repurchase of up to an Additional 8 Million Shares of Company's Outstanding Common Stock
WESTCHESTER, Ill., Oct 24, 2018 - (ACN Newswire) - Ingredion Incorporated (NYSE: INGR), a leading global provider of ingredient solutions to diversified industries, today said that based on preliminary financial information, it anticipates EPS of $1.32 and adjusted EPS of $1.70, for the third quarter of 2018. For the full year, the Company anticipates adjusted EPS of $6.80 to $7.05, compared with the previously anticipated $7.50 to $7.80. During the third quarter, the Company experienced significant FX headwinds caused by weakening foreign currencies primarily in Argentina, Brazil and Pakistan, as well as the impact of Argentine peso devaluation with the adoption of hyperinflation accounting. In North America, the Company experienced several unplanned power outages at Argo, its largest sweetener plant, and these operating events resulted in unforeseen higher manufacturing and supply chain costs.
"Our performance this quarter was impacted in part by the rapid pace and magnitude of FX currency devaluations in Argentina and Pakistan. As a result we expect our business model will require more than a quarter to recover," said Jim Gray, executive vice president and chief financial officer.
Jim Zallie, president and chief executive officer, said, "We are disappointed with the impact these unexpected circumstances had on our results during the latter half of the quarter, and remain focused on aggressively driving operational improvements and structurally reducing supply chain costs. We are making steady progress in addressing production and supply chain challenges while delivering on our customer experience commitments."
Ingredion also announced that its Board of Directors has authorized the repurchase of up to an additional 8 million shares of the Company's common stock from November 5, 2018 through December 31, 2023. Zallie said, "The Board's increased share repurchase authorization reflects its confidence in the Company's ability to generate strong cash flow from operations, support strategic investments, and fulfill its commitment to return capital to shareholders."
*Adjusted diluted earnings per share ("adjusted EPS") is a non-GAAP financial measure. See the Supplemental Financial Information entitled "Non GAAP Information" included in this press release for a reconciliation of this non-GAAP financial measure to the most directly comparable U.S. GAAP measure.
In 2018 through the third quarter, the Company repurchased 1.6 million shares.
The Company expects its existing program authorized on December 12, 2014 for repurchase of up to five million shares of common stock to be substantially completed during the fourth quarter of this year.
Repurchases under the stock repurchase program may be made by the Company from time to time in the open market, in privately negotiated transactions or otherwise, at prices that the Company deems appropriate. The stock repurchase program does not obligate Ingredion to repurchase any shares under the authorization, and the program may be suspended, discontinued or modified at any time, for any reason and without notice.
The Company will release its 2018 third quarter financial results for the period ended September 30, 2018 before the market opens on Thursday, November 1, 2018 at 7:30 a.m. Central Time (8:30 a.m. Eastern Time).
ABOUT THE COMPANY
Ingredion Incorporated (NYSE: INGR) headquartered in the suburbs of Chicago, is a leading global ingredient solutions provider serving customers in more than 120 countries. With 2017 annual net sales of nearly $6 billion, the company turns grains, fruits, vegetables and other plant materials into value-added ingredients and biomaterial solutions for the food, beverage, paper and corrugating, brewing and other industries. With 27 Ingredion Idea Labs(R) innovation centers around the world and more than 11,000 employees, the Company develops ingredient solutions to meet consumers' evolving needs by making crackers crunchy, yogurt creamy, candy sweet, paper stronger, and adding fiber to nutrition bars. For more information, visit Ingredion.com.
Investors: Heather Kos, 708-551-2592
Media: Becca Hary, 708-551-2602
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Source: Ingredion Incorporated via Globenewswire
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