Milling & Baking News - August 1, 2006 - 17

R E S U L T S

Corn Products' second-quarter sales set record
WESTCHESTER, ILL. - Higher volumes, favorable currency translations and improved
price/product mix contributed to an 8% sales
growth in the second quarter ended June 30 for
Corn Products International, Inc. Sales of $645
million, a quarterly record, compared with $596

million in the previous year's second quarter.
Net income jumped 14% to $30 million,
equal to 41c per share on the common stock, up
from $26 million, or 35c per share. Gross profit
rose 16% to $104.5 million. Gross corn costs
were favorable; co-product credits were lower;

Net earnings rise 9% at J&J Snack
Foods in third quarter; sales climb 8%
PENNSAUKEN, N.J. - Net income of J&J Snack Foods Corp. in the third quarter
ended June 24 totaled $10,786,000, equal to 58c per share on the common stock, up 9%
from $9,879,000, or 54c per share, in the same year-ago period. Net earnings were adversely affected $277,000 by share-based compensation expense during the quarter.
Sales in the quarter were $140,132,000, up 8% from $129,452,000 a year ago. Approximately $2,588,000 of the sales increase resulted from the acquisitions of Snackworks,
L.L.C. in March 2005, ICEE of Hawaii in January 2006 and Slush Puppie in May 2006.
Excluding these sales, revenues increased about 6%.
"We had another solid performance for the quarter with all of our major business
segments contributing," said Gerald B. Shreiber, president and chief executive officer.
"Continued strong performances from our core snack food and frozen beverage businesses helped achieve record profitability."
Sales to food service customers increased $4,948,000, or 6%, in the third quarter,
to $82,979,000. During the quarter, soft pretzel sales to the food service segment increased 7% to $25,937,000.
Bakery product sales were essentially flat at $33,896,000 in the third quarter.
"Bakery product sales were impacted by the loss of one customer that accounted for
$1.2 million of sales in last year's third quarter," J&J Snack said in a July 24 filing with
the Securities and Exchange Commission.
The company did note that it was impacted be higher commodity costs of approximately $1.5 million and higher utility costs of $450,000. MBN

18 / Milling & Baking News, August 1, 2006

-$20,853,527
March 4, 2006
-$10,049,307
April 1, 2006 -$15,193,537
April 29, 2006
-$7,514,771
June 3, 2006

Jan. 7, 2006
Feb. 4, 2006

-$7,962,855
-$18,962,788
-$32,534,746
-$9,696,847
-$5,569,011

$5,827,083

I.B.C. income (loss):
long road between
positive results
$283,864

As of June 3, I.B.C. still had had not
borrowed under its $200 million debtorin-possession credit facility. The company said it has $91.3 million of letters
of credit outstanding, which were partially collateralized by $86.4 million of
restricted cash as shown on the monthly operating report. The amount of the
credit facility available for borrowing
was $90.5 million as of June 3.
On July 24, New York-based Brencourt Advisors L.L.C., which holds an
8.5% stake in I.B.C., submitted a filing
with the S.E.C. containing a list of eight
candidates for four seats on I.B.C.'s
board of directors. The names were
contained in a letter addressed to I.B.C.
chairman Leo Benatar and signed by
William L. Collins, chairman and chief
executive officer of Brencourt.
In the letter, Mr. Collins said he and
his colleagues were "not content with
the operational and financial performance of the company."
"We support your efforts in the complex and multi-variable tasks of dealing

-$5,189,122

Continued from Page 1
$136,450,982, up from $115,091,506 in
the previous four-week period. Ingredients, packaging and outside purchasing
costs rose 26% to $70,517,362, while direct and indirect labor costs also rose, to
$50,030,746 from $42,923,470.
Restructuring and reorganization expenses during the most recent period
totaled $1,437,647, including charges
for professional fees of approximately
$3,943,704 and KERP and restructuring
bonus plans of $409,196. The expenses
were partially offset by a gain of $880,674
in interest income, $24,839 in adjustments
to lease rejection expense and $2,535 from
the gain on the sale of assets.
Earnings before interest, taxes, depreciation and amortization, a measure of cash
flow, were $17,677,003, which compared
with EBITDA of $2,871 in the prior period.
In the S.E.C. filing, I.B.C. said capital
expenditures for the five-week period
ended June 3 totaled approximately $3.8
million, bringing year-to-date capital
spending through June 3 to $32 million.

with issues such as leadership, marketing, labor and operations at Interstate
Bakeries," Mr. Collins wrote. He added
that the submission of eight names for
possible board membership comes at a
time when "difficult choices and compromises will be necessary." MBN

July 23, 2005

I.B.C. posts profit of $5.8 million
in period; first gain in 11 months

Aug. 20, 2005
Sept. 17, 2005
Oct. 15, 2005
Nov. 12, 2005
Dec. 10, 2005

F I N A N C I A L

and energy costs were higher than a year ago.
Variable incentive compensation, including the
cost of stock option financing, was primarily
responsible for higher operating expenses.
"Our solid second-quarter performance
gives us more confidence that 2006 should
be a record year," said Sam Scott, chairman,
president and chief executive officer of
Westchester-based Corn Products. "We're
pleased with improving profitability in our
North American region.
"Our South America business still suffered from cost and pricing pressures in
Brazil and Argentina, but we see these conditions beginning to improve in the second
half. Asia/Africa performed as expected."
The North American region saw operating
margins of 9%, which compared with 6% in
the previous year's second quarter. Overall,
Corn Products' operating income of $57 million marked a 10% increase from $52 million
in the previous year's second quarter.
For the first six months of the fiscal year,
Corn Products reported net income of $54 million, or 72c per share, which compared with
net income of $43 million, or 57c per share,
last year. Net sales grew 8% to $1.26 billion.
Corn Products will firm up its 2006 earnings
per share guidance when third-quarter results
are released in late October, Mr. Scott said.
"We continue to anticipate a 16% to 24%
increased in diluted e.p.s. in 2006 over $1.19
in 2004," he said. "Since we expect a stronger
second half, the improvement will likely be
near the high end of this range." MBN
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Milling & Baking News - August 1, 2006

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