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CCPPOO:: NNYYSSEE

Date: 14/12/2010

Symbol: CPO

Exchange: NYSE

Industry: Non-Cyclical

Consumer Goods and Services

Sector: Food Processing

Recommendation: Strong Buy

Target Price: 90.00

Current Price: 47.16 USD

Summary

Corn Products International Inc (CPO) reported third quarter

profit that narrowly beat estimates, helped by higher

volumes and favorable currency exchange impact, and raised

its full year earnings outlook.

Fast growth in Corn Prices

Growing demand in food sector

Corn Products raised its profit forecast to $2.75-$2.85 per

share, from $2.55-$2.75 a share.

Excluding items, the company earned 81 cents for the

quarter, while revenue rose 5 percent to $1.02 billion.

Fundamental Data

Market Cap ($): 3.57B

52 Week High/Low: 47.91 – 26.23

P/E ratio (TTM): 20.88

P/B ratio (MRQ): 1.91

Dividend yield (%): 1.188

ROA (%): 6.25

ROE (%): 10.16

Profit Margin (%): 4.43

Operating Margin (%): 9.59

Company Profile:

CORN PRODUCTS INTERNATIONAL is a leading worldwide provider of agriculturally derived

ingredient solutions to a broad range of industries and customers. For more than a century, the people of

Corn Products have been focused on developing the ingredients our customers need to bring their

products to market. Today, we are a leading global provider of dextrose, starches, glucose, syrups,

polyols and other ingredients found in literally thousands of products. We turn corn, tapioca, sugar and

other raw materials into ingredients used by some 60 diverse industries, including food, beverage,

pharmaceutical, health and personal care, paper, corrugating, textile, and animal health & nutrition.

Headquartered in Westchester, Illinois, our Company employs some 8,100 people at 28 facilities in 13

countries, all of whom are dedicated to providing value-added ingredients needed by a growing world.

Corn Products International, Inc. (Corn Products), incorporated in 1997, manufactures and sells a number

of ingredients to a variety of food and industrial customers. The Company is a corn refiner and a supplier

of food ingredients and industrial products derived from wet milling and processing of corn and other

starch-based materials. Its products are derived primarily from the processing of corn and other starch-

based materials, such as tapioca. Corn Products sweetener products include high fructose corn syrup

(HFCS), glucose corn syrups, high maltose corn syrups, caramel color, dextrose, polyols, maltodextrins

and glucose and corn syrup solids. Its starch-based products include industrial and food-grade starches.

Corn Products supplies a range of customers in industries, including the food and beverage,

pharmaceutical, paper products, corrugated, laminated paper, textile and brewing industries, as well as

the animal feed and corn oil markets. In October 2010, the Company acquired National Starch, the

specialty starches business of AkzoNobel N.V.

Sweetener Products

Did you know?

• Corn Products is the world’s largest

manufacturer of Dextrose.

• Specialty Dextrose is used in many

products including confectioneries and

low-calorie sweeteners to spice mixes and

beverage powders.

• Glucose corn syrup is used as a base in

industrial and food products.

During the year ended December 31, 2009, the Company’s sweetener products represented

approximately 56% of the Company’s net sales. The Company primarily produces two types of high

fructose corn syrup: HFCS-55, which is used as a sweetener in soft drinks and HFCS-42, which is used as a

sweetener in a number consumer products, such as fruit-flavored beverages, yeast-raised breads, rolls,

dough, ready-to-eat cakes, yogurt and ice cream. Corn syrups are ingredients used in food products, such

as baked goods, snack foods, beverages, canned fruits, condiments, candy and other sweets, dairy

products, ice cream, jams and jellies, prepared mixes and table syrups. The Company offers corn syrups

that are manufactured through an ion exchange process.

The Company offers high maltose corn syrup, which are used in the production of confections, canning

and some other food processing applications. As of December 31, 2009, it produced dextrose products

that are grouped in three categories: monohydrate, anhydrous and specialty. Monohydrate dextrose is

used across the food industry in many of the same products as glucose corn syrups, especially in

confectionery applications. Anhydrous dextrose is used to make solutions for intravenous injection and

other pharmaceutical applications, as well as some specialty food applications. Specialty dextrose

products are used in a range of applications, including confectionery tableting, dry mixes and for

sweeteners. Dextrose also has a range of industrial applications, including use in wall board and

production of biodegradable surfactants (surface agents), humectants (moisture agents), and as the base

for fermentation products, including vitamins, organic acids, amino acids and alcohol.

The Company’s polyols are sugar-free sweeteners primarily derived from starch. They include crystalline

sorbitol, crystalline maltitol, mannitol, specialty liquid polyols and liquid sorbitol for the food, beverage,

confectionary, industrial, personal and oral care, and nutritional supplement markets. Its maltodextrins

and glucose and corn syrup solid products are used in food applications, including formulations where

liquid corn syrups cannot be used.

Starch Products

Did you know?

• Unmodified starches are used primarily

as thickening agents and binders. They

are also sold to food packers for use by

consumers in home baking.

• Modified starches remain stable at many

temperatures, allowing foods to be

frozen and then thawed without losing

consistency and taste. This makes

modified starches ideal for frozen and

instant foods.

The Company’s starch products represented approximately 23% of the Company’s net sales in 2009.

Starches are used in a range of processed foods, where they are used particularly as a thickener and

binder. Cornstarch is also sold to cornstarch packers for sale to consumers. Starches are also used in

paper production. In the corrugating industry, starches are used to produce adhesives for the production

of shipping containers, display board and other corrugated applications. Industrial starches are used in

the production of construction materials, textiles, adhesives, pharmaceuticals and cosmetics, as well as in

mining, water filtration and oil and gas drilling.

Co-Products and others Its co-products and others accounted for 21% of the Company’s net sales in 2009. Refined corn oil (from

germ) is sold to packers of cooking oil and to producers of margarine, salad dressings, shortening,

mayonnaise and other foods. Corn gluten feed is sold as animal feed. Corn gluten meal is sold as feed for

chickens, pet food and aquaculture primarily, and steepwater is sold as an additive for animal feed.

The Company competes with Archer-Daniels-Midland Company, Cargill, Inc., Tate & Lyle Ingredients

Americas, Inc., National Starch and Chemical Company and ALMEX

Latest News:

Corn Products International Inc (NYSE:CPO) reported third quarter profit that narrowly beat estimates,

helped by higher volumes and favorable currency exchange impact, and raised its full year earnings

outlook.

The company, which provides ingredients to a wide range of industries including food, beverage,

pharmaceutical, animal feed, corrugating, paper and textile, reported net income of $37 million, or 48

cents a share, compared with $52.8 million, or 70 cents a share, a year earlier.

Excluding items, the company earned 81 cents for the quarter, while revenue rose 5 percent to $1.02

billion.

"The contributors to growth in net sales were a positive $91 million from higher volumes and a positive

$23 million from stronger foreign currencies," the company said in a statement.

For the full year, Corn Products raised its profit forecast to $2.75-$2.85 per share, from $2.55-$2.75 a

share.

In June, Corn Products said it will buy the National Starch business of Dutch paints firm AkzoNobel

(AKZO.AS) for $1.3 billion in cash.

Shares of the company, which have risen 18 percent in the past 3 months, closed at $41.10 Wednesday

on the New York Stock Exchange.

Interactive Chart:

Financial Highlight:

CONSENSUS ESTIMATES ANALYSIS

# of Estimates Mean High Low 1 Year Ago

SALES (in millions)

Quarter Ending Dec-10 4 1,023.83 1,159.70 928.60 --

Quarter Ending Mar-11 2 1,380.65 1,440.80 1,320.50 --

Year Ending Dec-10 4 3,940.00 3,964.70 3,888.30 3,797.72

Year Ending Dec-11 4 5,582.05 5,837.50 5,375.00 4,137.82

EARNINGS (per share)

Quarter Ending Dec-10 7 0.71 0.84 0.61 --

Quarter Ending Mar-11 2 0.77 0.80 0.75 --

Year Ending Dec-10 8 2.89 3.04 2.80 2.48

Year Ending Dec-11 8 3.60 3.87 3.30 2.73

Sales and Earnings Figures in U.S. Dollars (USD)

VALUATION RATIOS

Company Industry Sector S&P 500

P/E Ratio (TTM) 20.06 37.63 25.98 17.71

P/E High - Last 5 Yrs. 72.89 1.27 1.02 20.08

P/E Low - Last 5 Yrs. 5.73 0.42 0.41 4.99

Beta 1.21 0.62 0.58 1.28

Price to Sales (TTM) 0.88 1.59 2.15 2.13

Price to Book (MRQ) 1.85 1.06 1.70 2.88

Price to Tangible Book (MRQ) 2.14 0.93 1.87 7.88

Price to Cash Flow (TTM) 10.76 15.92 15.10 10.80

Price to Free Cash Flow (TTM) 9.60 14.44 12.83 49.07

% Owned Institutions -- -- -- --

DIVIDENDS

Company Industry Sector S&P 500

Dividend Yield 1.25 1.72 1.84 1.65

Dividend Yield - 5 Year Avg. 1.38 1.47 1.27 2.47

Dividend 5 Year Growth Rate 18.47 7.20 8.70 -6.45

Payout Ratio(TTM) 24.22 44.56 31.72 38.55

GROWTH RATES

Company Industry Sector S&P 500

Sales (MRQ) vs Qtr. 1 Yr. Ago 5.04 12.99 8.86 9.53

Sales (TTM) vs TTM 1 Yr. Ago 8.45 11.24 6.85 9.04

Sales - 5 Yr. Growth Rate 9.97 10.20 11.49 9.86

EPS (MRQ) vs Qtr. 1 Yr. Ago -31.02 7.30 854.18 6.75

EPS (TTM) vs TTM 1 Yr. Ago 466.92 -- -- --

EPS - 5 Yr. Growth Rate -15.29 7.20 8.41 6.98

Capital Spending - 5 Yr. Growth Rate 7.02 8.19 9.45 4.89

FINANCIAL STRENGTH

Company Industry Sector S&P 500

Quick Ratio (MRQ) 3.68 1.08 0.76 0.67

Current Ratio (MRQ) 4.41 1.60 1.06 1.00

LT Debt to Equity (MRQ) 91.67 28.02 25.65 118.61

Total Debt to Equity (MRQ) 95.43 39.66 34.93 172.83

Interest Coverage (TTM) 3.18 0.36 0.59 18.91

PROFITABILITY RATIOS

Company Industry Sector S&P 500

Gross Margin (TTM) 16.35 33.56 33.68 32.72

Gross Margin - 5 Yr. Avg. 16.01 31.81 35.33 29.13

EBITD Margin (TTM) 12.15 -- -- --

EBITD - 5 Yr. Avg 11.87 10.96 13.26 18.52

Operating Margin (TTM) 8.58 7.50 8.07 --

Operating Margin - 5 Yr. Avg. 8.39 7.54 9.96 16.23

Pre-Tax Margin (TTM) 7.35 7.65 8.17 14.93

Pre-Tax Margin - 5 Yr. Avg. 7.32 7.86 10.07 15.83

Net Profit Margin (TTM) 4.60 5.20 5.87 11.10

Net Profit Margin - 5 Yr. Avg. 4.67 5.38 6.88 11.62

Effective Tax Rate (TTM) 37.37 31.62 25.50 49.94

Effecitve Tax Rate - 5 Yr. Avg. 36.27 33.59 29.16 25.24

EFFICIENCY

Company Industry Sector S&P 500

Revenue/Employee (TTM) 483,765 30,048,263 29,151,479 675,859

Net Income/Employee (TTM) 22,259 1,046,382 918,441 85,228

Receivable Turnover (TTM) 7.57 5.47 21.25 10.48

Inventory Turnover (TTM) 8.00 4.20 6.25 6.78

Asset Turnover (TTM) 1.04 0.70 0.68 0.56

MANAGEMENT EFFECTIVENESS

Company Industry Sector S&P 500

Return on Assets (TTM) 4.80 2.67 3.19 6.03

Return on Assets - 5 Yr. Avg. 5.33 7.89 7.84 5.78

Return on Investment (TTM) 5.83 3.76 4.73 7.74

Return on Investment - 5 Yr. Avg. 6.83 17.21 13.35 7.47

Return on Equity (TTM) 10.12 5.75 8.33 18.05

Return on Equity - 5 Yr. Avg. 10.23 22.49 17.25 9.20

Contact Detail:

Chutinush Taksinapinunt

Corporate Account Executive

Heffernan Capital Management

Email: chutinush@heffernan-inc.com

Chutinush Taksinapinunt holds a Bachelor of Business Administrators degree Majoring in

Finance and Banking. Chutinush Taksinapinunt is an experienced market maker and Portfolio

Manager, having worked with some of Thailand’s largest Securities Company and Financial

Institutions.

Price Estimate by Shayne Heffernan PhD

Shayne Heffernan of Ebeling Heffernan holds a PhD in Economics serves as CEO of Heffernan

Holdings Inc and Co Founder of Ebeling Heffernan www.ebeling-heffernan.com

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Tel: +65 6329 6408Fax: +65 6329 9699

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