Corn Products International Expects Higher Earnings in 2008

06/02/08 Corn Products International, Inc., a leading global provider of agriculturally derived ingredients for diversified markets, announced that it expects another year of solid earnings growth in 2008.

The Company’s estimate of diluted earnings per share in 2008 is expected to be in a range of $2.65 to $2.85, compared with record EPS in 2007 of $2.59 reported today. EPS in 2007 included a 5-cent gain from the Company’s CME Group shares. The Company expects net sales to reach $3.7 billion in 2008 versus $3.39 billion in 2007.

“Our 2008 outlook for EPS results is primarily due to expected growth in our North and South American regions,” said Sam Scott, chairman, president and chief executive officer of Corn Products International. “However, we expect a tough year in our Asia/Africa region due to lower results in South Korea.

“Our US and Canadian businesses have again achieved higher contract pricing in 2008 across their starch and sweeteners book of business,” said Scott. “When coupled with our grain-related, or fee-based business, and multi-year contracts, overall pricing in 2008 for our entire book of business has increased in the low double-digit range in the US and Canada.

“Consistent with our stated policy,” Scott said, “corn requirements for our firm-price contracts in the US and Canada are appropriately hedged. As always, a portion of our co-product values and the corn basis are open.”

Scott noted that open trade between the US and Mexico for sugar and sweeteners took effect on January 1, 2008, as scheduled. He said the Company expects to increase its sales volumes in Mexico, including high fructose corn syrup (HFCS), in 2008, with its three Mexican plants operating essentially at full capacity.

The 2008 outlook for the South America region is expectations for higher operating income as a result of growth in Brazil and the Southern Cone. The Company believes its South American business model should enable the region to pass through increased corn costs during 2008.

The 2008 outlook for the Asia/Africa region reflects expectations for a decline in the region’s operating income due to lower operating income results expected from the South Korean business. Higher corn costs and freight costs are forecasted to negatively impact volume, net sales and operating income. The rest of the Asia/Africa region is expected to perform above their 2007 results.

“Our results in South Korea in the first half in 2008 are expected to be lower than the first six months of 2007,” Scott said. “We continue to work on turning around this business with specific plans in place.”

He added that South Korea’s lower performance is masking better performance in the rest of the Asia/Africa region. Pakistan and Thailand are expected to post higher results.

Scott said that planned capital expenditures of approximately $200 million in 2008 primarily reflect continued spending on attractive growth projects, including polyol investments in the US, Mexico and Brazil, and new modified starch capacity in Mexico. Product channel expansions also continue in such countries as Argentina, Colombia, Mexico, Pakistan and Thailand.

“We continue to enjoy a very healthy balance sheet, and we are optimistic about another year of solid earnings and sales growth, good returns and strong cash flow generation in 2008,” Scott said. “However, 2008 is certainly not without a number of challenges, including global corn price and other cost pressures, volume risks and difficult operating conditions in South Korea.”