Boston, MA 05/08/2014 (wallstreetpr) – Out of its international markets, Ingredion Inc (NYSE:INGR) has a keen interest in growing presence, in Asia-Pacific and the company seeks to make the most out of the region because it already has what it takes.
The company already has a presence in 12 Asia-Pacific countries with 15 offices in the region. And now it plans to expand its Singapore operations. The expansion project will see the introduction of a new research and development center. The company expects the expanded Singapore site to support end product development and developments in food ingredients.
According to the vice president of Asia-Pacific region, Jorgen Kokke, the company is excited about its success in Asia-Pacific and increasing capabilities, innovations and services in the region almost comes naturally. In any case, that is the company’s strategy aimed at enhancing shareholder value by taking advantage of opportunities where and whenever they exist.
North America disappoint
Ingredion Inc (NYSE:INGR)’s seemingly aggressive expansion into the global markets comes at a time when the company is facing growing challenges in North America. Though the latest quarter was widely impacted by harsh winter weather in the region, the company expects its North America business to remain under pressure even after the weather condition improved.
One reason North America seems likely to face sales decline in 2014 is the mounting competition in the market. However, the company believes that it can stabilize sales in the long-run, therefore, allaying investor concerns about the company’s future in the region. But even if North America were to remain tepid, the company believes that international operations can offset the impact.
A quarter that departed from the norm
Ingredion Inc (NYSE:INGR) is used to quarterly earnings improvements, but 1Q2014 broke the trend. The company posted overall sales and profit decline of 14 and 34 percent respectively. Net income for the three months period ending March 31, was $72.6 million or 97 cents per share. That compared with a net income of $110.8 million or $1.43 per share in 1Q2013. Sales in the quarter came in at $1.4 billion, down from $1.6 billion a year earlier.
