Penford parent posts lower profit

CEDAR RAPIDS - Ingredion, corporate parent of Penford Products in Cedar Rapids, on Thursday reported lower third-quarter net profit and sales.

The Winchester, Ill., company posted net income of $110 million, or $1.51 per share, for the quarter that ended on Sept. 30, down 9 percent from $120.4 million, or $1.62 per share, for the same quarter of 2014.

Ingredion recorded third-quarter sales of $1.44 billion, down 2 percent from $1.46 billion for the same period last year.

The company posted third-quarter adjusted operating income of $192 million, up 8 percent from $178 million in the third quarter of 2014. Adjusted operating income includes the impact of Ingredion's purchase of Kerr Concentrates, a privately held producer of natural fruit and vegetable concentrates, in August and Penford Products in March.

Ingredion, a food ingredient supplier, attributed the growth in operating income to organic volume growth in core and specialty ingredients, volume growth from Kerr and Penford, profit margin expansion in North America, and price increases in South America.

Ingredion said those positives were offset by changes in foreign currency exchange rates.

The company said net sales were down because of changes in foreign currency exchange rates and the pass through of lower corn costs to customers.

Ingredion has been engaged in a contract dispute with Bakery, Confectionery, Tobacco Workers and Grain Millers Union Local 100G, which represents 158 workers at the plant.

Ninety-five percent of the union members voted in early August to reject the company's last contract offer, but have continued to work at the plant.

In a news release Thursday, Ilene Gordon, Ingredion president and CEO, said the integration of Penford remains on track for at least $20 million in annualized savings.

'Our growth strategy continues to drive robust results and we remain confident in our 2015 outlook,” Gordon said. 'Our expectation for adjusted earnings per share for the year is raised to $5.75 to $5.90.”