Corn costs expected to slow CPC Intl's 4th Qtr. earnings gains.ENGLEWOOD CLIFFS, N.J.--(BUSINESS WIRE)--November 6, 1996--At the Food and Tobacco Conference hosted by Smith Barney Smith Barney is a division of Citigroup Global Capital Markets Inc., a global, full-service financial firm, that provides brokerage, investment banking and asset management services to corporations, governments and individuals around the world. today, C. R. Shoemate, chairman and chief executive officer of CPC (1) (Central Processing Complex) An IBM mainframe that has two or more central processors (CPs) that share memory. It is the collection of processors, memory and I/O subsystems manufactured with a single serial number, typically all contained in one cabinet. International, said that the company's expected earnings gains for 1996, based on strong performance in its consumer foods operations, will be slowed by the impact of corn costs in the fourth quarter of 1996. "We've had a very tough year in our corn refining business, due to extraordinarily high -- and extraordinarily unpredictable -- corn costs. Even though corn refining is only about 15% of CPC's overall business, it is having an important effect on CPC's results," Mr. Shoemate said. "Corn costs have now come down dramatically, and our fourth-quarter corn refining profits are significantly better than they were in the third quarter. Unfortunately, though, the timing and rate of the fall in corn costs defied predictability. In the course of planning for any eventuality in the chaotic corn market, we took prudent positions to limit our risk from high prices. The sudden decline in the corn market, while welcome for the longer term, makes those positions costly in the fourth quarter, with a probable effect of five cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. compared to our thinking when we issued our third-quarter earnings release just three weeks ago." About CPC International: CPC International Inc. is among the largest U.S. food companies and ranks as one of the 100 largest industrial companies in the U.S., with annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. sales of about $10 billion. Best known among CPC's U.S. products are: Hellmann's and Best Foods Hellmann's and Best Foods are brand names that are used for the same line of mayonnaise and other food products. The Hellmann's brand is sold in the United States east of the Rocky Mountains, and also in Latin America, Europe, and Canada. mayonnaise; Mazola corn oil and margarine; Skippy peanut butter; Knorr soups, sauces, and bouillons; Entenmann's sweet baked products; Thomas' English muffins; Arnold, Brownberry, Freihofer's, and Oroweat breads; Boboli Italian bread shells; Mueller's pasta; and Karo KARO Kane Amateur Radio Operators (Kane, PA) syrup. CPC's global Knorr brand comprises one of the world's most extensive lines of products. CPC is one of the nation's most international food companies, with operations in 63 countries. CPC is also one of the largest corn refiners, with operations in North America and Latin America. CONTACT: Media: Gale Griffin, Vice President, Corp. Communications 201/894-2407 Analyst: John W. Scott, Vice President, Investor Relations Investor relations The process by which the corporation communicates with its investors. 201/894-2837 |
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