Ingredion Down 9%

Shares of Ingredion (INGR) are currently down about 9% today. The company warned that Q3 earnings will be about $1.70 per share. Wall Street had been expecting $1.96 per share.

Previously, Ingredion had stood by its full-year guidance of $7.50 to $7.80 per share. Now INGR expects $6.80 to $7.05 per share.

From the press release:

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.”

Posted by on October 23rd, 2018 at 9:14 am


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