August 4, 2014

 

Bunge's revenue surges 8.4% in Q2

  

 

 

 

Bunge Ltd. reported revenue of $16.8 billion for the second quarter, a rise of 8.4% from a year earlier and above analysts estimates.

 

Soren Schroder, Bunge's chief executive officer, stated, "We had a strong performance in the second quarter with all segments reporting higher year-over-year results. Strong global oilseed processing margins, driven by big crops and growing demand, led to significantly better results in agribusiness."

 

Bunge benefited from a record soybean crop, particularly in South America, which led to a surge in oilseed production. The soybean situation is better than anticipated, with world soybean inventories reaching an all-time record.

 

The company reports that a strong global oilseed processing environment in most regions of the world was the primary driver of higher results in the quarter.  In the Southern Hemisphere, record soybean crops, strong export demand and good farmer selling led to solid processing margins.  Its team in Brazil continued to manage logistical flows of crops through a complicated interior structure resulting in lower transportation and execution costs.  Oilseed processing results were also higher in the Northern Hemisphere led by strong softseed margins in Canada and soybean margins in Europe. 

 

US soybean processing results were comparable to last year. Results in China were down. Grain origination results were within expectations, but lower than last year primarily due to
 

Brazilian farmers postponing commercialization of the safrinha corn crop as a result of the drop in market prices.

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