Ingredion Earns $1.73 per Share

This morning, Ingredion (INGR) posted Q4 earnings of $1.73 per share which was two cents below estimates. For the year, INGR made $7.70 per share.

Financial Highlights

At December 31, 2017, total debt and cash and short-term investments were $1.86 billion and $603 million, respectively, versus $1.96 billion and $516 million, respectively, at December 31, 2016. Cash and short-term investments were higher primarily driven by higher net income partially offset by stock repurchases and the finalization of the U.S.-Canada tax settlement.

During the fourth quarter of 2017, net financing costs were $16 million, or $2 million lower than the year-ago period, due to modestly lower interest rates compared to the same period in 2016.

For the fourth quarter of 2017, reported and adjusted effective tax rates were 44.9 percent and 32.5 percent, respectively, compared to reported and adjusted effective tax rates of 43.4 percent and 27.8 percent in the year-ago period. The reported rate for the fourth quarter of 2017 and the year-ago period includes charges of $23 million and $31 million, respectively, related to the enactment of the Tax Cuts and Jobs Act in December 2017 and settlement of a tax matter concerning the allocation of income between the United States and Canada. The enactment of the Tax Cuts and Jobs Act in December 2017 resulted in a one-time, estimated charge of $23 million in the fourth quarter. The estimated charge includes a transition tax on accumulated overseas earnings, foreign taxes on a portion of our unremitted earnings and the remeasurement of deferred tax assets and liabilities. Without these charges, the reported rate for the fourth quarter of 2017 and the year-ago period would have been 32.7 percent and 25.3 percent, respectively. The remainder of the rate increase is largely due to decreasedforeign tax creditsin 2017.

2017 capital expenditures were $306 million, up $23 million from 2016 driven by investments in our cost savings and specialty growth initiatives.

For 2018, they see EPS ranging between $8.10 and $8.50 per share.

Posted by on February 1st, 2018 at 8:56 am


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.