July 24, 2009

Bunge's net income for the second quarter of the year was US$313 million, down 58 percent from the same period last year, due to high inventory costs and decreasing international fertiliser prices.

Net sales fell 23 percent to US$10.99 million from US$14.37 million a year ago.

Despite so, the company remains optimistic for the second half of 2009 as agribusiness returns were better than expected and managed to offset the weak fertiliser results, according to Bunge chairman and CEO Alberto Weisser.

Lower soy production in South America has limited oilseed processing utilisation in Argentina, which although is challenging locally, should continue to support crush margins on a global level, Weisser said.

A possible large North American harvest should provide Bunge with ample volumes for the agribusiness operations in that region, Weisser added.

Grain origination and distribution benefited from strong soy demand from China, the company said. Solid margins and improved meal demand supported oilseed processing results as customers rebuilt depleted inventory pipelines.

Weisser said Bunge continues to work through some remaining high-cost raw material inventory in the fertiliser segment, but good demand and improved international phosphate pricing should benefit the fertiliser margins.

Bunge is a leading agribusiness and food company with operations in over 30 countries.