Ingredion Inc. (INGR), North America’s fourth-largest maker of high-fructose corn syrup, fell the most in almost two years after cutting its profit forecast because of shrinking margins in Argentina.
The shares dropped 8.9 percent to $63.29 at 9:49 a.m. in New York, the biggest intraday decline since August 2011.
Ingredion cut its projection for full-year profit to $5.10 to $5.40 a share from $5.60 to $6, the Westchester, Illinois-based company said yesterday in a statement. Second-quarter earnings excluding one-time items are expected to be $1.15 to $1.20 a share. That compares with the $1.32 average of nine analysts’ estimates compiled by Bloomberg.
Growth in Argentina has been lower than expected and government policies have curbed Ingredion’s ability to pass on higher raw-material prices to customers, the company said.
“Argentina has moved into a rather severe situation,” Chairman and Chief Executive Officer Ilene Gordon said today on a conference call with analysts.
The largest North American high-fructose corn syrup makers are Cargill Inc., Archer-Daniels-Midland Co. and Tate & Lyle Plc.
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