April 25, 2008

 

Bunge posts higher earnings on strong global demand

 

 

Bunge Ltd. reported a jump in its net income in the first quarter ended March 31 to US$289 million, equal to US$2.10 per share on the common stock.

 

Last year, earnings were only US$14 million.

 

Reports of the earnings spike sent Bunge shares up nearly 7 percent in pre-market trading, before falling back 7 percent in early trading on Thursday.

 

Net sales were US$12.5 billion, up 70 percent from US$7.3 billion.

 

Alberto Weisser, chairman and chief executive officer, said high commodity and fertilizer prices reflect that global demand for key commodities and products is very strong.

 

Agribusiness operating profit was $464 million in the first quarter, up sharply from the same period a year ago when the company posted a profit of US$110 million. Net sales in Agribusiness were US$8.9 billion, up 65 percent.

 

Bunge said results in agribusiness benefited from higher oilseed crushing margins in all regions, as well as stronger distribution results.

 

Milling products operating profit was US$36 million on sales of US$486 million in the first quarter, versus US$33 million and US$257 million, respectively, the year before.

 

Bunge said the narrow profit gain reflected increased competition and higher operating costs in wheat milling.

 

Operating profit for edible oil products climbed 52 percent to US$117 million on a 72 percent gain in sales to US$1.9 billion.

 

Bunge increased its full-year net income guidance for 2008 by US$150 million to US$980 million to US$1.02 billion.