Ingredion Incorporated报告2019年第二季度业绩

| Source: Ingredion Incorporated Ingredion Incorporated

Westchester, IL

  • 2019年第二季度报告和调整后每股收益（EPS*）分别为1.56美元和1.66美元，而2018年第二季度的数据分别为1.57美元和1.66美元
  • 2019年年初至今，报告和调整后每股收益分别为3.04美元和3.20美元，低于去年同期3.47美元的报告每股收益和3.60美元的调整后每股收益
  • 预计2019年调整后每股收益介于6.60美元至6.90美元之间，体现下半年温和增长

伊利诺伊州威彻斯特, Aug. 03, 2019 (GLOBE NEWSWIRE) -- Ingredion Incorporated（NYSE: INGR），全球领先的面向多元化产业的原料解决方案提供商，今天公布了2019年第二季度业绩。该业绩依据2019年和2018年美国公认会计原则（GAAP）报告，含公司列出的非GAAP财务指标中不包括的项目。

“第二季度，我们遇到外汇波动的影响以及原材料市场的快速变化。我们的团队采取了积极的定价措施，以减轻外汇的影响。我们经历了北美地区因中美贸易争端导致持续的农作物库存失衡引起的玉米净成本上升。我们密切关注原材料市场并有选择性地利用机会抵消部分玉米成本增长的不利影响。”Ingredion总裁兼首席执行官Jim Zallie说道。

“由于我们采取了行动来加速我们的成本智能节约计划，现预计2019年年底实现3000万至4000万美元的累计运营节约，高于之前预计的2400万美元到3400万美元。”

“我们的专业原料增长平台本季度实现了净销售额增长，主要是由减糖和专业甜味剂带动。我们即将启动墨西哥San Juan del Rio生产基地的阿洛酮糖生产，届时将补充我们现有专业甜味剂的产品组合。此外，我们的植物性蛋白质增长策略取得了进展，并正在积极地用下半年的预期销售来填补我们的客户渠道。我们还拓展了与Verdient Foods的合作关系，以提升生产食品级、高价值专业脉冲面粉和浓缩物的能力。”

“我们预计今年下半年会温和增长。不过，由于近期玉米成本上涨，我们预计北美地区下半年的玉米净成本也将上升。现在我们对2019年调整后每股收益预测介于6.60-6.90美元之间，”Zallie补充道。

*调整后的摊薄每股收益（“调整后每股收益”）、调整后营业收入、调整后实际所得税率和调整后经营业务现金流量均为非GAAP财务指标。请参阅本新闻稿中随附的简明合并财务报表后题为“非GAAP信息”的补充财务信息第II节，以便根据最具直接可比性的美国公认会计原则指标调整这些非GAAP指标。

Diluted Earnings Per Share (EPS)
 2Q182Q19YTD18YTD19
Reported EPS$1.57$1.56$3.47$3.04
Income Tax Settlement$0.02 -$0.02 -
Impairment/Restructuring Costs$0.07$0.10$0.11$0.15
Acquisition/Integration Costs - - -$0.01
Adjusted EPS**$1.66$1.66$3.60$3.20

**因四舍五入，总额可能有出入

Estimated factors affecting change in reported and adjusted EPS
 2Q19YTD19
Margin(0.09)(0.26)
Volume(0.01)(0.02)
Foreign exchange(0.13)(0.28)
Other income0.01 (0.02)
Total operating items(0.22)(0.58)
Other non-operating income- (0.02)
Financing costs0.08 0.03 
Shares outstanding0.12 0.25 
Tax rate0.02 (0.09)
Non-controlling interest- 0.01 
Total non-operating items0.22 0.18 
Total items affecting EPS- (0.40)


财务亮点

  • 截至2019年6月30日，总债务、现金和短期投资分别为21亿美元和3.01亿美元，2018年12月31日分别为21亿美元和3.34亿美元。现金和短期投资的减少主要是由于周转资金以及近期收购和投资时间发生变动。
  • 第二季度净融资成本为1600万美元，较上年同期下降900万美元。下降原因在于外汇收益弥补上年同期同一季度的损失，部分抵消了由于债务余额增加而导致的净利息支出增加。
  • 第二季度的报告和调整后实际税率均为29.6%，低于上年同期的报告和调整后实际税率31.4%和30.5%。报告和调整后税率下降是由于墨西哥比索估值相对较低，影响了墨西哥以美元计价的余额。有部分因为收入组合和其他因素的变化所抵消。
  • 第二季资本支出为1.56亿美元，较上年同期下降400万美元。
  • 现预计成本智能计划将在2019年年底实现3000万至4000万美元的累计运营节约，高于之前设定的2400万至3400万美元的目标。成本智能计划通过协调人员和流程来提高整个组织的效能和效率，从而实现结构性成本节约。例如，公司位于墨西哥瓜达拉哈拉的全球业务服务中心现已全面运营。

业务回顾

整个Ingredion

$ in millions2018 Net salesFX ImpactVolumePrice/mix2019 Net sales% change
Second quarter1,496-77-24391,434-4%
Year-to-Date2,965-171-571172,854-4%

净销售额

  • 第二季度和年初至今的净销售额均低于上年同期。净销售额下降的主因在于不利的外汇影响和计划内斯托克顿市高果糖玉米糖浆和工业淀粉量下降，并被定价措施取得的价格/产品组合效益部分抵消，从而缓解了外汇影响和玉米净成本上涨的影响。

营业收入

  • 第二季度报告和调整后营业收入分别为1.68亿美元和1.78亿美元，较上年同期分别下降13%和11%。下降原因主要在于外汇影响以及原材料成本上涨，部分抵消了改善价格/产品组合所获效益。
  • 年初至今报告和调整后营业收入分别为3.29亿美元和3.44亿美元，较上年同期分别下降16%和14%。下降原因主要在于外汇影响以及生产成本上涨，部分抵消了改善价格/产品组合所获效益。
  • 受成本智能计划和Western Polymer整合成本相关的重组成本影响，第二季度报告营业收入比调整后营业收入低1000万美元。

北美

$ in millions2018 Net salesFX ImpactVolumePrice/mix2019 Net sales% change
Second quarter916-3-25-3885-3%
Year-to-Date1,790-8-4251,745-3%

营业收入

  • 第二季度营业收入为1.39亿美元，相比去年同期下降1100万美元。下降的主因在于副产品价值降低以及预定的工厂维护导致玉米净成本上涨。
  • 年初至今营业收入为2.64亿美元，相比去年同期下降2900万美元。下降的主因在于副产品价值降低、库存和生产成本上升以及美国和加拿大极端天气的适度影响导致玉米净成本上涨。

南美

$ in millions2018 Net salesFX ImpactVolumePrice/mix2019 Net sales% change
Second quarter232-47327215-7%
Year-to-Date481-109-1475433-10%

营业收入

  • 第二季度营业收入为1600万美元，相比去年同期下降400万美元。外汇影响被有利的定价措施部分抵消。
  • 年初至今营业收入为3400万美元，相比去年同期下降1200万美元。外汇影响和销量下降被有利的定价措施部分抵消。

亚太

$ in millions2018 Net salesFX ImpactVolumePrice/mix2019 Net sales% change
Second quarter201-8-13195-3%
Year-to-Date395-15-615389-2%

营业收入

  • 第二季度营业收入为2300万美元，相比去年同期下降400万美元。主要是韩国的玉米成本上升和全区外汇影响，被专业原料销量增长和有利的价格/产品组合部分抵消。
  • 年初至今营业收入为4300万美元，相比去年同期下降700万美元。专业原料销量增长和提升价格/产品组合所获效益被地区玉米成本上涨和外汇影响大大抵消。

欧洲、中东和非洲（EMEA）

$ in millions2018 Net salesFX ImpactVolumePrice/mix2019 Net sales% change
Second quarter147-18-111139-5%
Year-to-Date299-38422287-4%

营业收入

  • 第二季度营业收入为2300万美元，相比上年同期下降600万美元。全区不利的外汇影响（主要是巴基斯坦卢比）和原材料成本上涨被改善价格/产品组合所获收益部分抵消。
  • 年初至今营业收入为4700万美元，相比去年同期下降1300万美元。全区不利的外汇影响（主要是巴基斯坦卢比）和原材料成本上涨被专业原料销量增长和改善价格/产品组合所获收益部分抵消。

2019年最新展望

公司预计2019年调整后每股收益介于6.60美元至6.90美元之间，低于2018年6.92美元的调整后每股收益。这一预计值排除了与收购相关的整合与重组成本以及任何潜在减值成本。与上年相比，2019年全年展望如下：北美营业收入预计将下降，假设当前玉米和副产品市场条件一直受美国史无前例的极端天气和延迟作物种植以及中美贸易争端引起的持续作物库存失衡的不利影响；南美营业收入预计持平，反映出宏观经济面临的挑战；亚太地区营业收入预计下降，原因在于汇率、投入成本上升以及贸易争端的区域性影响引起客户需求放缓；EMEA地区营业收入预计下降，原因在于外汇、原材料成本上升以及英国脱欧的不确定性；调整后实际税率预计介于26.5%-28.0%左右；高价值专业原料有望带来持续增长。公司预计2019年下半年营业收入相较2018年同期有小幅增长。经营现金流量预计介于6.10亿美元到6.60亿美元之间。资本支出预计介于3.3亿美元至3.6亿美元之间。

电话会议和网络直播详情
Ingredion于中部时间8月1日上午7:30召开电话会议， 会议由总裁兼首席执行官Jim Zallie以及执行副总裁兼首席财务官James Gray主持。电话会议将进行实时网络直播，其中的演示稿可通过公司网站www.ingredion.com获取。演示稿于会议开始前的几小时内开放下载。网络直播将通过www.ingredion.com网站提供限时重放。

关于公司
Ingredion Incorporated（NYSE: INGR）总部位于芝加哥郊区，是全球领先的原料解决方案提供商，为全球120多个国家/地区的客户提供服务。公司将谷物、水果、蔬菜和其他植物材料转化为食品、饮料、造纸、瓦楞纸、酿造等行业使用的增值原料和生物材料解决方案，年净销售额接近60亿美元。公司拥有Ingredion Idea Labs®全球创新中心以及11,000多名员工，致力于开发各种原料解决方案以使饼干酥脆、酸奶幼滑、糖果香甜、纸张强韧以及增加营养棒中纤维，从而满足消费者不断变化的需求。如需获取更多信息，请访问：ingredion.com。

前瞻性声明
本新闻稿含有或可能含有《1933年证券法案》第27A节（及其修订案）以及《1934年证券交易法案》第21E节（及其修订案）中定义的前瞻性声明。公司拟将这些前瞻性声明纳入该等声明的安全港条款。

除其他事项之外，前瞻性声明包括任何关于公司未来财务状况、收益、收入、税率、资本支出、现金流、费用或其他财务项目的任何陈述，包括公司预计的2019年调整后每股收益、营业收入、调整实际税率、运营和资本支出现金、任何有关公司前景或未来运营的陈述，包括管理层为此制定的计划、战略和目标，以及基于上述内容的任何假设、期望或信念。

这些陈述有时可以通过使用的前瞻性词汇进行确定，如“可能”、“将”、“应该”、“预计”、“假设”、“相信”、“计划”、“规划”、“估计”、“期望”、“意图”、“继续”、“预估”、“预测”、“展望”、“拟制”、“驱使”、“机会”、“潜在”、“暂定”或其他类似的表达或否定。除本新闻稿中的历史事实或本新闻稿中提及的陈述之外的所有其他陈述均为“前瞻性声明”。

这些陈述均基于当前情况或预期作出，但也存在某些固有的风险和不确定性，其中很多难以预测并且超出我们的控制范围。虽然我们相信在这些前瞻性声明中反映出的预期是基于合理的假设，但投资者须注意我们不保证我们的预期将被证明是正确的。

由于各种因素，包括与高果糖玉米糖浆有关的消费偏好的改变，实际结果和发展可能与这些声明中明示或暗示的预期大不相同；全球经济状况的影响，特别是南美的经济、货币和政治状况和欧洲的经济和政治状况及其对我们产品销售量和定价的影响；我们向客户收取应收账款的能力，以及我们以合理利率筹集资金的能力；我们所服务的主要行业的未来财务表现，包括但不限于食品、饮料、纸张及瓦楞纸和酿造行业；全球玉米和其他商品市场的波动，以及对冲此类波动的相关风险；基因和生物技术问题；我们开发或获得新产品和服务的速度和质量足以满足期望的能力；原材料的供应，包括玉米（包括最近美国玉米种植季节降水过多的影响），马铃薯淀粉、木薯淀粉、阿拉伯树胶以及我们的一些产品所基于的特定玉米品种；我们的副产品市场和价格的波动，特别是玉米油；产业总供给和市场需求的波动；金融市场的行为，包括外汇波动及利率和汇率的波动；资本市场的动荡和不稳定；商业和消费信贷环境；在我们采购原材料或制造或销售我们产品的各个地区和国家的一般政治、经济、商业、市场和天气情况；能源成本和供应情况；货运和海运成本；以及有关配额的监管控制的变化；财政关税、商品关税、税收和所得税税率，特别是2017年颁布的美国税收改革；经营困难；巴基斯坦的能源问题；锅炉可靠性；有效整合和经营所收购业务的能力；我们遵守预算和实现预期协同效应的能力；我们按照成本智能计划实现预期成本节约的能力；我们按预算完成完成计划的维修和投资项目的能力；劳资纠纷；玉米精炼行业与日俱增的竞争和/或客户压力；以及严重传染病或战争的爆发或持续，包括恐怖主义行为。我们的前瞻性声明仅讲述截至声明日期的情况，我们无任何义务在声明日期之后因为任何新的信息或未来事件或发展而更新任何前瞻性声明以反映事件或情况。如果我们确实更新或更正了其中一项或多项声明，投资者和其他人不应该就此推断我们将进行其他更新或更正。有关这些和其他风险的进一步描述，请参见我们截至2018年12月31日的年度报告（表10-K）以及后续报告（表10-Q和8-K上）中收录的“风险因素”和其他信息。

联系信息：
投资者：Ryan Koller, 708-551-2592
媒体：Becca Hary, 708-551-2602

 
 
Ingredion Incorporated ("Ingredion")
Condensed Consolidated Statements of Income
(Unaudited)
      
         
        
(in millions, except per share amounts)Three Months Ended June
30,		 Change
%		  Year Ended
June 30,		 Change
%
  2019  2018     2019  2018  
Net sales before shipping and handling costs$1,550 $1,608  (4%)  $3,086 $3,189  (3%)
Less: shipping and handling costs 116  112  (4%)   232  224   
Net sales 1,434  1,496  (4%)   2,854  2,965  (4%)
Cost of sales 1,105  1,136      2,209  2,251   
Gross profit 329  360  (9%)   645  714  (10%)
           
Operating expenses 154  161  (4%)   304  317  (4%)
Other income, net (2) (2)     (1) (4)  
Restructuring/impairment charges 9  8      13  11   
Operating income 168  193  (13%)   329  390  (16%)
Financing costs, net 16  25      38  41   
Other, non-operating income -  (1)     -  (2)  
Income before income taxes 152  169  (10%)   291  351  (17%)
Provision for income taxes 45  53      82  92   
Net income 107  116  (8%)   209  259  (19%)
Less: Net income attributable to non-controlling interests 2  2      4  5   
Net income attributable to Ingredion$105 $114  (8%)  $205 $254  (19%)
           
           
Earnings per common share attributable to Ingredion          
common shareholders:          
           
Weighted average common shares outstanding:          
Basic 66.9  71.9      66.9  72.1   
Diluted 67.4  72.8      67.4  73.2   
           
Earnings per common share of Ingredion:          
Basic$1.57 $1.59  (1%)  $3.06 $3.52  (13%)
Diluted$1.56 $1.57  (1%)  $3.04 $3.47  (12%)
           


Ingredion Incorporated ("Ingredion")
Condensed Consolidated Balance Sheets
 
 
      
  (in millions, except share and per share amounts)June 30, 2019 December 31, 2018
   (Unaudited)  
      
Assets   
 Current assets   
  Cash and cash equivalents$297  $327 
  Short-term investments 4   7 
  Accounts receivable – net 1,015   951 
  Inventories 865   824 
  Prepaid expenses 34   29 
 Total current assets 2,215   2,138 
      
  Property, plant and equipment – net 2,232   2,198 
  Goodwill 801   791 
  Other intangible assets – net 451   460 
  Operating lease assets 143   - 
  Deferred income tax assets 10   10 
  Other assets 146   131 
Total assets$5,998  $5,728 
      
Liabilities and equity   
 Current liabilities   
  Short-term borrowings$107  $169 
  Accounts payable and accrued liabilities 787   777 
 Total current liabilities 894   946 
      
  Non-current liabilities 211   217 
  Long-term debt 1,946   1,931 
  Non-current operating lease liabilities 111   - 
  Deferred income tax liabilities 199   189 
  Share-based payments subject to redemption 25   37 
      
      
 Equity   
 Ingredion 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, 77,810,875   
  shares issued at June 30, 2019 and December 31, 2018 1   1 
  Additional paid-in capital 1,138   1,096 
  Less:  Treasury stock (common stock; 11,090,045 and 11,284,681 shares at   
  June 30, 2019 and December 31, 2018, respectively) at cost (1,047)  (1,091)
  Accumulated other comprehensive loss (1,152)  (1,154)
  Retained earnings 3,656   3,536 
 Total Ingredion stockholders' equity 2,596   2,388 
 Non-controlling interests 16   20 
 Total equity 2,612   2,408 
      
Total liabilities and equity$5,998  $5,728 
 


 
Ingredion Incorporated ("Ingredion")
Condensed Consolidated Statements of Cash Flows
(Unaudited)
 
  For the Six Months
Ended June 30,
(in millions) 2019   2018 
     
Cash provided by operating activities:  
 Net income$209  $259 
 Adjustments to reconcile net income to   
 net cash provided by operating activities:   
 Depreciation and amortization 103   107 
 Mechanical stores expense 28   29 
 Deferred income taxes 10   8 
 Charge for fair value mark-up of acquired inventory -   - 
 Margin accounts 15   (4)
 Changes in other trade working capital (136)  (99)
 Other 24   52 
 Cash provided by operating activities 253   352 
   
Cash used for investing activities:  
 Capital expenditures and mechanical stores purchases, net of proceeds on disposals (156)  (160)
 Payments for acquisitions, net of cash acquired of $4 and $-, respectively (42)  - 
 Investment in a non-consolidated affiliate (10)  - 
 Short-term investments 3   3 
 Other -   2 
 Cash used for investing activities (205)  (155)
    
Cash used for financing activities:   
 Proceeds from (payments on) borrowings, net (51)  (188)
 Repurchases of common stock, net 63   (141)
 Issuances of common stock for share-based compensation, net of settlements -   (3)
 Dividends paid, including to non-controlling interests (87)  (92)
 Cash used for financing activities (75)  (424)
     
 Effect of foreign exchange rate changes on cash (3)  (9)
 Decrease in cash and cash equivalents (30)  (236)
 Cash and cash equivalents, beginning of period 327   595 
 Cash and cash equivalents, end of period$297  $359 
   


             
Ingredion Incorporated ("Ingredion")            
Supplemental Financial Information            
(Unaudited)            
             
             
             
             
I. Geographic Information of Net Sales and Operating Income      
             
(in millions) Three Months Ended
June 30,		 Change Year Ended 
June 30,		 Change
   2019   2018  %  2019   2018  %
Net Sales            
North America $885  $916  (3%) $1,745  $1,790  (3%)
South America  215   232  (7%)  433   481  (10%)
Asia Pacific  195   201  (3%)  389   395  (2%)
EMEA  139   147  (5%)  287   299  (4%)
Total Net Sales $1,434  $1,496  (4%) $2,854  $2,965  (4%)
             
Operating Income            
North America $139  $150  (7%) $264  $293  (10%)
South America  16   20  (20%)  34   46  (26%)
Asia Pacific  23   27  (15%)  43   50  (14%)
EMEA  23   29  (21%)  47   60  (22%)
Corporate  (23)  (25) 8%  (44)  (48) 8%
Sub-total  178   201  (11%)  344   401  (14%)
Acquisition/integration costs  (1)  -     (2)    
Restructuring/impairment charges  (9)  (8)    (13)  (11)  
Total Operating Income $168  $193  (13%) $329  $390  (16%)
             


II. Non-GAAP Information           
            
To supplement the consolidated financial results prepared in accordance with Generally Accepted Accounting Principles (“GAAP”), we use non-GAAP historical financial measures, which exclude certain GAAP items such as acquisition and integration costs, impairment and restructuring costs, and certain other special items. We generally use the term “adjusted” when referring to these non-GAAP amounts. 

Management uses non-GAAP financial measures internally for strategic decision making, forecasting future results and evaluating current performance. By disclosing non-GAAP financial measures, management intends to provide investors with a more meaningful, consistent comparison of our operating results and trends for the periods presented. These non-GAAP financial measures are used in addition to and in conjunction with results presented in accordance with GAAP and reflect an additional way of viewing aspects of our operations that, when viewed with our GAAP results, provide a more complete understanding of factors and trends affecting our business. These non-GAAP measures should be considered as a supplement to, and not as a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP. 
 
Non-GAAP financial measures are not prepared in accordance with GAAP; therefore, the information is not necessarily comparable to other companies. A reconciliation of each non-GAAP historical financial measure to the most comparable GAAP measure is provided in the tables below.
            
            
Ingredion Incorporated ("Ingredion")
Reconciliation of GAAP Net Income attributable to Ingredion and Diluted Earnings Per Share ("EPS") to 
Non-GAAP Adjusted Net Income attributable to Ingredion and Adjusted Diluted EPS
(Unaudited)
            
            
 Three Months Ended Three Months Ended Year Ended Year Ended
 June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018
 (in millions)EPS (in millions)EPS (in millions)EPS (in millions)EPS
            
Net income attributable to Ingredion$105$1.56 $114$1.57 $205$3.04 $254$3.47
            
Add back:           
            
Acquisition/integration costs, net of income tax benefit of $1 million for the three and six months ended June 30, 2019 (i) - -  - -  1 0.01  - -
            
Restructuring/impairment charges, net of income tax benefit of $2 million and $3 million for the three and six months ended June 30, 2019, respectively, and $3 million and $3 million for the three and six months ended June 30, 2018 (ii) 7 0.10  5 0.07  10 0.15  8 0.11
            
Income tax settlement (iii) - -  2 0.02  - -  2 0.02
            
Non-GAAP adjusted net income attributable to Ingredion$112$1.66 $121$1.66 $216$3.20 $264$3.60
            
Net income, EPS and tax rates may not foot or recalculate due to rounding.
            
Notes           
            
(i) The 2019 period includes costs related to the acquisition and integration of the business acquired from Western Polymer, LLC.
            
(ii) During the three and six months ended June 30, 2019, the Company recorded $9 million and $13 million of pre-tax restructuring charges, respectively.  During the second quarter of 2019, the Company recorded $6 million of other costs, including professional services, and employee-related severance in the North America and South America  segments as part of its Cost Smart SG&A program and finance transformation initiative and $3 million of other costs, including professional services, related to its Cost Smart cost of sales program.  During the six months ended June 30, 2019, the $13 million of restructuring charges consisted of $9 million of costs associated with its Cost Smart SG&A program and Finance Transformation initiative and $4 million of costs associated with its Cost Smart cost of sales program.

During the three and six months ended June 30, 2018, the Company recorded an $8 million and $11 million pre-tax restructuring charge, respectively.  During the second quarter of 2018, the Company recorded $6 million of employee-related severance and other costs associated with its Cost Smart program and $2 million of costs associated with the Company's finance transformation initiative, and $1 million of other costs related to the abandonment of certain assets related to its leaf extraction process in Brazil.
 
(iii) The Company had been pursuing relief from double taxation under the U.S. and Canadian tax treaty for the years 2004 through 2013.  During the fourth quarter of 2016, the Company recorded a net reserve of $24 million, including interest thereon, recorded as a $70 million liability and a $46 million benefit.  During the third quarter of 2017, an agreement was reached between the two countries for the specific issues being contested.  As a result of that final settlement, during the second quarter of 2018, the Company received a $34 million refund from the CRA and recorded $2 million of interest penalty through tax expense.

 
 
II. Non-GAAP Information (continued)           
            
            
Ingredion Incorporated ("Ingredion")
Reconciliation of GAAP Operating Income to Non-GAAP Adjusted Operating Income
(Unaudited)
            
            
 Three Months Ended Six Months Ended      
 June 30, June 30,      
(in millions, pre-tax) 2019 2018  2019 2018      
           
Operating income$168$193 $329$390      
           
Add back:          
           
Acquisition/integration costs (i) 1 -  2 -      
           
Restructuring/impairment charges (ii) 9 8  13 11      
           
Non-GAAP adjusted operating income$178$201 $344$401      
            
 
            
For notes (i) through (ii) see notes (i) through (ii) included in the Reconciliation of GAAP Net Income attributable to Ingredion and Diluted EPS to Non-GAAP Adjusted Net Income attributable to Ingredion and Adjusted Diluted EPS.
 


II. Non-GAAP Information (continued)             
  
  
  
Ingredion Incorporated ("Ingredion") 
Reconciliation of GAAP Effective Income Tax Rate to Non-GAAP Adjusted Effective Income Tax Rate 
(Unaudited) 
        
        
 
  Three Months Ended June 30, 2019 Year Ended June 30, 2019 
  Income before Provision for Effective Income Income before Provision for Effective Income 
(in millions) Income Taxes (a) Income Taxes (b) Tax Rate (b / a) Income Taxes (a) Income Taxes (b) Tax Rate (b / a) 
              
As Reported $152 $45  29.6% $291 $82  28.2% 
              
Add back:             
              
Acquisition/integration costs (i)  1  1     2  1    
              
Restructuring/impairment charges (ii)  9  2     13  3    
              
Adjusted Non-GAAP $162 $48  29.6% $306 $86  28.1% 
 
 
 Three Months Ended June 30, 2018 Year Ended June 30, 2018 
 Income before Provision for Effective Income Income before Provision for Effective Income 
(in millions) Income Taxes (a) Income Taxes (b) Tax Rate (b / a) Income Taxes (a) Income Taxes (b) Tax Rate (b / a) 
                      
 
As Reported $169 $53  31.4% $351 $92  26.2% 
             
Add back:             
             
Restructuring/impairment charges (ii)  8  3     11  3    
              
Income tax settlement (iii)  -  (2)    -  (2)   
              
Adjusted Non-GAAP $177 $54  30.5% $362 $93  25.7% 
 
  
 
For notes (i) through (iii) see notes (i) through (iii) included in the Reconciliation of GAAP Net Income attributable to Ingredion and Diluted EPS to Non-GAAP Adjusted Net Income attributable to Ingredion and Adjusted Diluted EPS.
  


II. Non-GAAP Information (continued)        
 
Ingredion Incorporated ("Ingredion") 
Reconciliation of Anticipated GAAP Diluted Earnings per Share ("GAAP EPS") 
to Anticipated Adjusted Diluted Earnings per Share ("Adjusted EPS") 
(Unaudited) 
 
     
  Anticipated EPS Range    
  for Full Year 2019    
  Low End High End    
GAAP EPS $6.24 $6.66    
         
Add:        
         
Acquisition/integration costs (iii)  0.03  0.02    
         
Restructuring/impairment charges (iv)  0.33  0.22    
         
Adjusted EPS $6.60 $6.90    
         
         
         
Above is a reconciliation of our anticipated full year 2019 diluted EPS to our anticipated full year 2019 adjusted diluted EPS. The amounts above may not reflect certain future charges, costs and/or gains that are inherently difficult to predict and estimate due to their unknown timing, effect and/or significance.  These amounts include, but are not limited to, acquisition and integration costs, impairment and restructuring costs, and certain other special items.  We generally exclude these items from our adjusted EPS guidance. For these reasons, we are more confident in our ability to predict adjusted EPS than we are in our ability to predict GAAP EPS.
         
(iii) Reflects expected costs related to the acquisition and integration of the business acquired from Western Polymer, LLC. and acquisitions to be determined.
         
(iv) Primarily reflects current estimates for 2019 restructuring charges related to the Cost Smart Cost of Sales & SG&A programs. As specific projects within these programs are approved, the estimates will be reviewed and may be subject to revision.

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