Corn Products International, Inc. (NYSE: CPO) today reported that earnings per share at $0.36 on a fully diluted basis, were down 41 percent for the third quarter ended September 30, 2000, consistent with its expectations for the quarter contained in its press release, dated September 15, 2000. Prior year's earnings for the same quarter were $0.61 per fully diluted share. Net income for the July-through-September period was $13 million versus $23 million earned in the same quarter last year.

Konrad Schlatter, chairman and chief executive officer, said, "Our results in the United States and Canada, where we had already been experiencing low annually contracted US sweetener pricing, have also been hurt by reduced demand for sweeteners to the beverage industry from the unusually cool summer. And, we are experiencing much higher energy costs and record low corn oil and corn gluten feed prices throughout the world. However, we are pleased to see continuing good results in our Rest of World base businesses and important contributions from our recent acquisitions."

Schlatter added, "Our geographic positions have strengthened during the year and we continue to improve our business. Late in the quarter, we began to see the projected benefits from the integration of our existing and newly added operations in Argentina. Here at home, we announced on October 4, 2000, an agreement in principle for a US joint marketing company -- CornProductsMCP Sweeteners LLC. We believe this new venture will enable us to compete more effectively in the US market, as well as create synergies in the logistics, sales, marketing and administrative functions. We expect these actions will create a stronger company."

The Company also reported that its previously announced special charge of $20 million before-tax remained unchanged after recognition of a one-time pension settlement gain of $5 million from US restructuring, and an equivalent and, therefore offsetting, one-time charge for the integration of its two Argentine businesses.

Third quarter net sales were $479 million, up 8 percent from $445 million in the same period last year. Overall volume growth was 10 percent for the quarter. Total volume growth was attributable to the recent acquisitions in Korea and Argentina.

The Company's gross profit was $73 million for the third quarter, down from $77 million for the same period in 1999. Operating income was $40 million, down from $45 million or 12 percent in the same three months last year.

Financing costs in the third quarter were $14 million, up from $9 million a year earlier. The increase reflected the debt taken on for acquisitions, share repurchases and slightly higher interest rates. The Company's effective tax rate remained at 35 percent in the third quarter.

For the nine-month period, diluted earnings were $1.38 per share before a $0.37 per share or $13 million after-tax restructuring charge and $1.01 per share after that charge. This compared with $1.61 earnings per share in the January to September period in 1999. The Company's net income was $36 million after the charge, compared with $60 million last year. Operating income before the special charge was $134 million versus $125 million a year ago. Cumulative net sales were $1.4 billion, up from $1.3 billion last year, a 9-percent increase.

The Company also confirmed its September estimate of $1.75 to $1.80 in earnings-per-diluted share for fiscal year 2000, before restructuring charges.


North American net sales were $295 million for the third quarter, down 8 percent from $322 million last year. In the United States and Canada, sales were reduced as a result of low annually contracted selling prices for sweeteners and continued record low co-product prices. While volumes were down 1 percent in the third quarter, year-to-date volumes showed a 3-percent increase from 1999 levels. In Mexico, higher volume was offset by lower prices.

North American operating income dipped in the third quarter to $12 million from $29 million last year as a result of the decline in pricing and lower volumes associated with the cool weather. Higher natural gas costs and lower co-product prices negatively impacted results in the United States, Canada and Mexico. The projected savings from the US restructuring are meeting expectations in both manufacturing and operating expenses.

Rest of World net sales registered $184 million in the third quarter of 2000, up 50 percent from $123 million in last year's third quarter. The increase reflected volume growth from the Korean and Argentine acquisitions and in most of the Company's other markets.

Rest of World operating income was $29 million in the third quarter, up from $20 million or 48 percent, in the same period a year ago. Important phases of the integration of the Argentine business have been completed; as a result the southern cone of South America has begun to show significant improvements late in the quarter. Continued strong Korean results and improved performance in Brazil also contributed to the gain. High-energy costs and record low corn oil prices continued, however, to challenge the Company's operations.

Corn Products International, Inc. is one of the world's largest corn refiners and a major supplier of high-quality food ingredients and industrial products derived from the wet milling and processing of corn and other starch- based materials. The Company is the No. 1 worldwide producer of dextrose and a leading regional producer of starch, high fructose corn syrup and glucose. In 1999, the Company recorded sales of $1.7 billion with operations in 22 countries at 43 plants, including wholly owned businesses, affiliates and alliances. Headquartered in Bedford Park, Ill., it was founded in 1906. The Company is listed on the New York Stock Exchange under the symbol CPO. Additional information can be found on the World Wide Web at

This press release contains or may contain certain forward-looking statements concerning the Company's financial position, business and future prospects, in addition to other statements using words such as "anticipate," "believe," "plan," "estimate," "expect," "intend" and other similar expressions. These statements contain certain inherent risks and uncertainties. Although we believe our expectations reflected in these forward-looking statements are based on reasonable assumptions, stockholders are cautioned that no assurance can be given that our expectations will prove correct. Actual results and developments may differ materially from the expectations conveyed in these statements, based on factors such as the following: fluctuations in worldwide commodities markets and the associated risks of hedging against such fluctuations; fluctuations in aggregate industry supply and market demand; general economic, business, market and weather conditions in the various geographic regions and countries in which we manufacture and sell our products, including fluctuations in the value of local currencies and changes in regulatory controls regarding quotas, tariffs and biotechnology issues; and increased competitive and/or customer pressure in the corn refining industry. Our forward-looking statements speak only as of the date on which they are made and we do not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of the statement. If we do update or correct one or more of these statements, investors and others should not conclude that we will make additional updates or corrections. For a further description of risk factors, see the Company's most recently filed Annual Report on Form 10-K and subsequent reports on Forms 10-Q or 8-K.

                        CORN PRODUCTS INTERNATIONAL, INC.
Condensed Consolidated Statements of Income

(In millions, except per share amounts)

Three Months Ended % Nine Months Ended %
September 30, Change September 30, Change
2000 1999 2000 1999
Net sales $479.3 $444.6 8% $1,397.5 $1,282.5 9%
Cost of sales 405.9 367.3 11% 1,161.4 1,064.5 9%
Gross profit 73.4 77.3 -5% 236.1 218.0 8%

Operating expense 34.8 34.0 2% 105.9 97.6 8%
(Fees and income) from
affiliates (1.5) (2.1) -28% (3.6) (4.4) -18%

Operating income before
special charge 40.1 45.4 -12% 133.8 124.8 7%

Special charge - - 20.0 -

Operating income 40.1 45.4 -12% 113.8 124.8 -9%

Financing costs 14.0 9.2 53% 36.7 24.8 48%

Income before taxes 26.1 36.2 -28% 77.1 100.0 -23%
Provision for income
taxes 9.1 12.7 27.0 35.0
17.0 23.5 -28% 50.1 65.0 -23%
Minority stockholder
interest 4.4 0.9 14.6 4.8
Net income $12.6 $22.6 -44% $35.5 $60.2 -41%

Weighted average common
shares outstanding:
Basic 35.2 37.2 35.3 37.3
Diluted 35.2 37.3 35.3 37.4

Earnings per common share
Basic and Diluted $0.36 $0.61 -41% $1.01 $1.61 -37%

Condensed Consolidated Balance Sheets

As of:
(In millions, except share amounts) September 30,
December 31,
2000 1999
Current assets
Cash and cash equivalents $36 $41
Accounts receivable - net 276 261
Inventories 224 212
Prepaid expenses 12 6
Deferred tax asset 17 17
Total current assets 565 537

Plants and properties - net 1,406 1,349
Goodwill, net of accumulated amortization 315 270
Investments in joint ventures 28 27
Other assets 31 29
Total assets 2,345 2,212
Liabilities and stockholders' equity
Current liabilities
Short term borrowings and current portion of
long-term debt 508 222
Accounts payable 71 109
Accrued liabilities 108 90
Total current liabilities 687 421
Non-current liabilities 46 63
Long - term debt 241 322
Deferred taxes on income 195 180
Minority stockholders' interest 188 199
Stockholders' equity
Preferred stock - authorized 25,000,000
shares-$0.01 par value none issued -- --
Common stock - authorized 200,000,000
shares-$0.01 par value - 37,659,887 issued
on Sept. 30, 2000 and December 31, 1999 1 1
Additional paid in capital 1,067 1,067
Less: Treasury stock (common stock;
2,492,660 and 703,399 shares on Sept. 30,
2000 and December 31, 1999, respectively)
at cost (62) (20)
Deferred compensation - restricted stock (2) (2)
Accumulated comprehensive loss (142) (120)
Retained earnings 126 101
Total stockholders' equity 988 1,027
Total liabilities and stockholders' equity $2,345 $2,212

Condensed Consolidated Statements of Cash Flows

(In millions) For The Nine Months Ended Sept. 30,
2000 1999
Cash flows from (used for) operating activities

Net income $35 $60
Non-cash charges (credits) to net income:
Depreciation and amortization 104 86
Deferred taxes - 7
Loss on disposal of fixed assets 3 -
Changes in trade working capital:
Accounts receivable, prepaid items, and
other assets 2 (25)
Inventories (5) (3)
Accounts payable and accrued liabilities (35) 21
Net cash flows from operating activities 104 146

Cash flows from (used for) investing activities:
Capital expenditures paid, net of proceeds
on disposal (96) (102)
Cash consideration paid for acquired business (117) (75)
Net cash flows from (used for) investing
activities (213) (177)

Cash flows from (used for) financing activities:
Proceeds from short term borrowings, net
of payments 158 (136)
Proceeds from note issuance -- 198
Dividends paid (11) (9)
Cost of common stock repurchased (44) (10)
Other non-current liabilities -- 7
Net cash flows from (used for)
financing activities 103 50
Increase (decrease) in cash and cash equivalents (6) 19
Effect of exchange rates on cash 1 (4)
Cash and cash equivalents, beginning of period 41 36
Cash and cash equivalents, end of period $36 $51

Supplemental Financial Information

I.Geographic Information of Net Sales and Operating Income

(In millions) Three Months Ended Nine Months Ended
Sept. 30, Change Sept. 30, Change
2000 1999 % 2000 1999 %
Net Sales
North America $295.4 $321.9 -8% $876.0 $919.4 -5%
Rest of World 183.9 122.7 50% 521.5 363.1 44%
Total 479.3 444.6 8% 1,397.5 1,282.5 9%

Operating Income
North America $11.7 $29.5 -60% $56.7 $77.4 -27%
Rest of World 29.5 19.9 48% 85.9 58.0 48%
Corporate (1.1) (4.0) -73% (8.8) (10.6) 17%
Special charge - - (20.0) -
Total 40.1 45.4 -12% 113.8 124.8 -9%

II. Estimated Source of Earnings Per Share for the Three and Six Months
Ended June 30(A)

The following is a list of the major items that impacted our third quarter
and year to date results.The amounts are calculated on a net after tax
basis and attempt to estimate total business effects.

Earnings PerEarnings Per
Share Share
Three Nine
Months Months
Net Income Per Share Sept. 30, 1999 $0.61 $1.61
Volumes 0.21 0.69
Operating margin (0.31) (0.55)
Foreign currency translation - 0.03
Financing costs (0.08) (0.21)
Minority interest (0.09) (0.26)
Stock buy-back program 0.02 0.07
Special charge - (0.37)
Net Change (0.25) (0.60)
Net Income Per Share Sept. 30, 2000 $0.36 $1.01

(A)All amounts were calculated on a pro-forma basis

III. Common Stock:
Sept. 30, 2000 Dec. 31, 1999
Common Stock Issued and Outstanding 37,659,887 37,659,887
Held in treasury 2,492,660 703,399
Net 35,167,227 36,956,488