23 July 2009 12:30 [Source: ICIS news]
LONDON (ICIS news)--Bunge posted a 58% drop in second quarter net income to $313m (€219m), down from $751m in the same period last year, the US agribusiness and fertilizer producer said on Thursday.
The company’s sales declined 23% to $11.0bn despite sales volumes increasing 6% to 38,505 tonnes, Bunge said.
The fertilizer business was the weakest performer, falling to an operating loss of $53m, down from a gain of $393m in the year-earlier period.
Bunge said the loss was due to a combination of high cost inventory and decreasing international fertilizer prices, which negatively impacted margins.
“We continue to work through some remaining high-cost raw material inventory in our fertilizer segment, but good demand and improved international phosphate pricing should benefit our fertilizer margins,” said Bunge CEO Alberto Weisser.
In its outlook, the company said it expected a strong second half of the year, with results weighted more heavily to the fourth quarter when the Northern Hemisphere harvest is well underway.
Bunge maintained its full year earnings per share guidance at $4.90-5.40.
($1 = €0.70)
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