The drop was in line with analysts' consensus estimate, and Corn Products stock closed up 2.44 percent, at $30.20 a share.

Net sales for the quarter were up 13 percent to $583.3 million. North American sales were $345.9 million, up 9 percent from last year.

While sales volume grew overseas, North American sales volume decreased 3 percent from the prior- year period, a drop the company blamed on poor sales of high-fructose corn syrup [HFCS] products to the Mexican soft-drink industry. Mexico imposed a 20 percent tax on drinks sweetened with high-fructose corn syrup in January of 2002; Illinois farmers have complained that the tax is costing them hundreds of thousands of dollars per year.

"All of the volume decline in North America relates to Mexico, where CPO saw no sales in 2Q03 but was able to ship limited quantities of HFCS in 2Q02 when the tax was temporarily rescinded from March 5-July 12, 2002," said Prudential Financial analysts in a statement.

While North America accounted for 64 percent of Corn Products' total sales for the quarter, it produced only 34 percent of the company's operating income. Almost half of Corn Products operating income came from South America, which comprised only 22 percent of sales.

Operating income from South America increased 36 from the prior-year quarter. Asian and African operating income increased only 4 percent, and North American operating income saw a 15 percent decrease from last year. Income from the North American region has been falling since 1999.

The best news, the analysts said, was the lack of bad news this quarter, after several previous dissapointments.

The company says it expects an overall increase in earnings-per-share for the coming year over 2002. Prudential analysts agreed, estimating an EPS of $1.98 for 2003, up from $1.77 in 2002. If pressure from the United States forces Mexico to roll back its HFCS tax, those earnings could be greater, Prudential stated.