November 2, 2010

Bunge Q3 earnings show decrease



Bunge Ltd. has reported a 9% decrease in its third-quarter net income as it booked a charge to pay down debt.


Nevertheless, profit topped expectations and the company expects a strong finish to the year.


Net income for the quarter ended September 30 was US$212 million, or US$1.36 per share, down from US$232 million or US$1.62 per share, during the same period last year. Excluding one-time charges, Bunge earned US$2.26 per share, beating analysts' forecast for earnings of US$1.59 per share according to a survey by Thomson Reuters.


Revenue rose to US$11.66 billion from US$11.3 billion during the same period last year. That was shy of Wall Street's US$12.48 billion consensus view.


The company maintained its full-year forecast for earnings between US$3.25 and US$3.50 per share, compared with analysts' average US$2.95-per-share outlook.


"The US harvest is progressing well, providing our grain merchandising operations with ample supplies to originate, store, and transport," said interim CFO Drew Burke. "Global trade should remain strong as other geographies step in to serve demand impacted by the crop shortage in the Black Sea region. Fertiliser demand should benefit from the delayed start to planting due to poor weather conditions in Brazil."

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