Bunge Q2 profits surge more than four-fold

24 July 2008 12:23  [Source: ICIS news]

LONDON (ICIS news)--Bunge reported a surge in second quarter net income to $751m (€478m), up from $168m in the same period last year, driven by booming agribusiness and fertilizer markets, the company said on Thursday.

 

Bunge booked a 73% increase in sales to $14.4bn, compared with $8.3bn a year earlier.

 

“The second quarter was characterized by good demand and strong margins,” said CEO Alberto Weisser.

 

The company’s agribusiness segment increased operating profits to $614m from $143m driven by higher margins in oilseed processing, grain origination and distribution, Bunge said.

 

Fertilizer profits rose to $393m from $71m due to strong farmer demand and margins. Bunge said soybean and corn farmers were increasing purchases as prices for agricultural commodities rose.

 

The company increased its full year earnings per share (EPS) forecast to $11.60-11.90 from $9.35-9.65 based on a strong second half outlook.

 

“Looking at the second half of the year, fertilizer fundamentals should remain strong,” said CFO Jacqualyn Fouse.

 

“While growth in demand for some agricultural products may soften slightly due to the solid sustained period of high prices, agribusiness margins should be solid,” added the CFO.

 

In June Bunge agreed to buy US agribusiness rival Corn Products International for $4.8bn. Weisser said the deal was expected to close in the fourth quarter.

 

($1 = €0.64)

By: Mark Watts
+44 20 8652 3214

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