(RTTNews) - Tuesday, Corn Products International, Inc. (CPO: News ), a provider of agriculturally derived ingredients, reported a sharp fall in profit for the first quarter, negatively impacted by lower volumes, lower co-product prices, and unfavorable foreign currency translations. Citing lower-than-expected first quarter results, and change in North and South American businesses forecast, the company slashed its fiscal 2009 earnings forecast to a range below analysts' estimates.

The Westchester, Illinois-based company's net income for the quarter fell to $18.4 million from $66.1 million in the prior year period. First-quarter net income attributable to CPI shareholders plunged 74% to $16.8 million or $0.22 per share from $64.3 million or $0.85 per share in the same period last year.

On average, six analysts polled by Thomson Reuters expected the company to report earnings of $0.49 per share for the quarter. Analysts' estimates typically exclude special items.

The company, with operations in 15 countries at 34 plants, noted that its 2009 first-quarter results were negatively impacted by higher net corn costs, unfavorable foreign currency translations and softer volumes. According to the company, the estimated negative earnings per share impact from lower co-product prices was $0.28, price/margin was $0.14, foreign currency values were $0.10, volume changes were $0.07, and higher net financing costs were $0.04.

Net sales before shipping and handling costs were $880.8 million, down 11% from $991.0 million a year ago.

Adjusting shipping and handling costs, quarterly net sales fell 11% to $831.1 million from $930.9 million in the prior-year period, and missed Wall Street analysts' estimate of $843.17 million.
Corn Products attributed the decline in net sales to a negative $103 million from foreign currency translations and a negative $65 million from lower volumes partly offset by improved price/product mix of $68 million.

In the preceding fourth quarter, Corn Products reported a profit of $46.4 million or $0.61 per share, while net sales before shipping and handling costs were $957.1 million, and quarterly net sales were $900.0 million.

Geographically, North American net sales in the first quarter edged down 1% to $531.3 million from $536.9 million in 2008, as improved price/product mix of $46 million was more than offset by unfavorable volumes of $31 million and foreign currency translations of $21 million.

In South America, the company recorded a 21% decline in net sales to $214.4 million from $272.1 million a year ago, primarily due to the impact of unfavorable foreign currency translations, and lower volumes, despite favorable price/product mix.

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